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Stable in 40 States
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This Week in DC
The House and Senate are out.
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Treasury Posts ERA2 Property Disposition Guidance
The Treasury Department published the Emergency Rental Assistance 2 (ERA2) Real Property Disposition frequently asked questions (FAQs). The FAQs are intended to provide guidance on the use, reporting, disposition, and recordkeeping requirements applicable to real property acquired and/or improved with ERA2 award funds. Additional program information can be found here.
OBBBA Implementation Resources
Following enactment of H.R. 1, the One Big Beautiful Bill Act (OBBBA), a number of resources have been released examining the legislation's impact and providing implementation guidance. Newly released resources are included below.
- The Centers for Medicare and Medicaid Services (CMS) released an implementation resource for the Rural Health Transformation Program. The information guide covers Category E: Workforce, defining the scope of the category and addressing the five-year rural service commitment. The agency also recently updated the Rural Health Resource Guide, intended to raise awareness of program staff of existing federally supported and independent public health coalitions and resources.
- The Treasury Department announced proposed guidance governing eligible investments in Trump Accounts. The proposed guidance would support long-term growth by limiting eligible investments to choices with low expense ratios and excluding projects with excessive fees or unnecessarily complex strategies.
- The Internal Revenue Service (IRS) updated frequently asked questions about the limitation on the deduction for business interest expense, including due to provisions in OBBBA.
- The Department of Education (ED) approved the nation’s second Workforce Pell Grant program for eligible students at Ivy Tech Community College in Indiana, where students can use federal Pell Grant dollars to enroll in its Clinical Medical Assistant program.
Education to Use Own Grants Management System for Fall Awards
According to media reports, the Department of Education (ED) will continue to send formula funds for the current school year through its own online payments system. In a statement, ED confirmed the Title I and Title II funds will go through the department’s existing G5 grants system, rather than the portal run by the Department of Labor. Per the press clip, the payments are scheduled to be sent to states on October 1.
Administration Appealing Ruling on SNAP Restrictions
Last Thursday the U.S. Department of Agriculture (USDA) filed an appeal to the U.S. Court of Appeals for the District of Columbia from the court’s summary judgement decision, related to restrictions on purchases in the Supplemental Nutrition Assistance Program (SNAP). On June 22 a federal judge ruled against state pilot projects that restrict SNAP participants from buying certain foods and beverages with the benefits. The ruling applied to the plaintiffs’ home states: Colorado, Iowa, Nebraska, Tennessee, and West Virginia. The department is now appealing that decision.
Federal Court Upholds Forever Chemicals Designation
According to media reports, last week the U.S. Court of Appeals for the District of Columbia ruled in favor of an Environmental Protection Agency (EPA) action designating perfluorooctanoic acid (PFOA) and perfluorooctanesulfonic acid (PFOS), also known as “forever chemicals,” as “hazardous substances” under the law. Per the press clip, this gives the EPA more authority to investigate sites that have been contaminated and hold polluting companies liable for cleanup costs under the Superfund law. Several interest groups petitioned the court to overturn EPA’s decision, which the court denied.
HHS Announces New Services to Support Families, Allow Federal Reimbursement
Last week the Department of Health and Human Services (HHS) added new peer support programs to the Title IV Prevention Services Clearinghouse, for which all states can now claim federal reimbursement. The department determined that two new peer support interventions meet the evidence standards to be included in the Title IV-E Prevention Services Clearinghouse, enabling states to claim federal matching funds when delivering these services: Family-Based Recovery and Wellness Recovery Action Plan (WRAP). These programs join two other programs that feature peer support already included in the Clearinghouse with a Supported rating: Sobriety Treatment and Recovery Teams (START) and Parents Anonymous.
HHS Launches National Autism Missing Person Alert Initiative
On Friday the Department of Health and Human Services (HHS) announced the development of the first-ever National Autism Missing and Endangered Person Alert Initiative. In partnership with the Department of Justice and Federal Emergency Management Agency, the initiative will work to strengthen coordination among emergency management agencies, law enforcement, first responders, and community partners nationwide to improve preparedness and response when autistic individuals are reported missing. It will also establish a national framework of best practices to address the leading causes of preventable injury and death among autistic individuals, including drowning linked to wandering and elopement. A fact sheet can be found here.
SAMHSA Awards $96 Million for Behavioral Health Services and Supports
Last week the Substance Abuse and Mental Health Services Administration (SAMHSA) announced $96.7 million in grants and cooperative agreements to strengthen behavioral health services and supports. The funding was awarded through eight programs addressing challenges including homelessness, suicide prevention and early intervention, youth and young adults at high risk for psychosis, substance use disorder treatment, disaster distress, eating disorders, and special projects. Links to recipients for each grant are included in the announcement.
FEMA Issues New and Updated Guidance on Homeland Security Grants
The Federal Emergency Management Agency (FEMA) recently published new and updated guidance for the Homeland Security Grant Program (HSGP). An updated informational bulletin provides additional clarity to the fiscal year 2026 HSGP notice of funding opportunity related to election security requirements and the 20 percent holdback. A second bulletin updates requirements and clarifies activities related to the Border Security National Priority Area, Election Security National Priority Area, and compliance verification attachments. The agency also provided a bulletin to clarify the basis on which Management and Administration costs may be charged to Nonprofit Security Grant Program awards and subawards. All preparedness grant information bulletins can be found here.
FEMA Announces $7.4 Million for State/Territory Dam Safety Programs
The Federal Emergency Management Agency (FEMA) recently announced a $7.4 million funding opportunity to promote dam safety. The funding is available through the National Dam Safety Program fiscal year 2026 State Assistance funding opportunity. The funding helps support state- and territory-managed dam safety programs, which may use these funds to help identify and mitigate risk before disasters occur. Applications are due by September 2.
Administration Announces New School Nutrition Initiative
On Monday the Departments of Agriculture (USDA) and Health and Human Services (HHS) announced the Harvest to Hallways initiative, an effort to improve school meals and strengthen the connection between agriculture and children. Actions being taken include a $50 million investment by USDA in school cafeteria infrastructure; $25 million in new, additional Patrick Leahy Farm to School Grants for fiscal year 2026; encouraging greater state adoption of the Pledge for Healthier School Meals; $30 million in research at HHS to identify practical and cost-effective ways to improve the nutritional quality of school meals; and launching an education and outreach campaign around the “Local Option” School Procurement Program, which can allow schools to be reimbursed for purchases of locally produced foods.
USDA Proposes Rescission of 2001 Roadless Rule
Last week the U.S. Department of Agriculture’s (USDA) Forest Service announced a proposed rule to rescind in its entirety the national 2001 Roadless Area Conservation Rule. The rule, when enacted, established prohibitions on road construction, road reconstruction, and timber harvesting in nearly 60 million acres of inventoried roadless areas, with limited exceptions. Today the 2001 rule applies to nearly 45 million acres of National Forest System lands. The proposed rescission is intended to prioritize local agency decision-making and allow future land management decisions to be based on national resource conditions and needs, informed by states, Tribes, and communities. Comments are due by September 21, and additional information can be found here.
Education Releases Guidance on Use of Technology in Classrooms
Last week the Department of Education (ED) released new guidance to help states, school districts, educators, families, and education technology providers make informed decisions about the responsible use of technology in classrooms. The Dear Colleague Letter encourages a focus on instructional value over recreational engagement when selecting and using technological tools in the classroom and urges states to pair innovation with evidence, educator judgement, transparency for parents, and a focus on student outcomes.
Education Proposes Rule to Reform Higher Education Accreditation System
On Wednesday the Department of Education (ED) issued a notice of proposed rulemaking to overhaul the higher education accreditation system. The proposed rule implements the reforms outlined in the executive order “Reforming Accreditation to Strengthen Higher Education.” Per the announcement, the proposed regulations would “break up entrenched accreditation monopolies and reorient the sector to prioritize innovation, academic excellence, and student outcomes.” Among other provisions, the proposed rule addresses issues with transfer of credit policies, ensuring that students are not required to undertake duplicative coursework when not necessary. Comments are due by September 21.
EPA Waiving Requirements for Gasoline Blends
Last week the Environmental Protection Agency (EPA), in consultation with the Department of Energy, issued a temporary emergency fuel waiver to allow the sale of E10 gasoline beginning on September 1. The action is intended to increase the domestic gasoline supply by hundreds of thousands of barrels per day by effectively ending the summer-blend gasoline requirement early. The action will remain in place through the end of the summer control season on September 15 and waives state level controls in Texas, Arizona, and California that extend beyond September 15, for the maximum period allowed of 20 days. More information on fuel waivers can be found here.
EPA Announces Actions to Strengthen Water Workforce, Reduce Lead Exposure
The Environmental Protection Agency (EPA) recently announced two actions to strengthen water infrastructure and safety. First, the agency announced the availability of $10.8 million to support training for workers in the water sector as nationally, drinking water, wastewater, and stormwater systems are facing a shortage of qualified workers due to expected retirements. Applications are due by October 5. Second, EPA released guidance intended to assist drinking water systems in reducing lead exposure. The guidance is intended to advance clear and plain language communication while sharing information, definitions, and useful examples to help water systems comply with lead pipe replacement requirements of the Lead and Copper rule.
DOI Finalizes Plans for Post-2026 Colorado River Operations
On Friday the Department of the Interior (DOI) issued the 2027-2028 Operating Guidelines and the Record of Decision for the Post-2026 Colorado River Operations Final Environmental Impact State (EIS). This action establishes a 10-year Decision Framework with an operational range that will be used to develop future operational guidelines for Lake Powell and Lake Mead. The department also released the August 2026 24-Month Study, determining the 2027 operations based on the new guidelines. Additional information, including a fact sheet on future operations, can be found here.
DOL Releases Guidance for Congressionally Directed Spending, Workforce and Labor Market Information Grants
The Department of Labor (DOL) recently issued guidance regarding two funding programs. First, the department issued application instructions and program guidance for fiscal year 2026 Community Project Funding/Congressionally Directed Spending. A list of eligible applicants can be found here. Second, the department provided program guidance and deliverables for the program year 2026 Workforce and Labor Market Information Grants to States.
DOL Finalizes Rule on Wagner-Peyser Employment Service Staffing
On Thursday the Department of Labor (DOL) issued a Training and Employment Notice to announce the publication of the Wagner-Peyser Employment Service Staffing Final Rule. The final rule removes the requirement that states must use state merit staff to provide employment service (ES) services. The notice also provides information to states seeking to implement the flexibility provided in the final rule as part of their Workforce Innovation and Opportunity Act (WIOA) Unified or Combined State Plan.
SBA Proposes Rule to Change Small Business Size Standards
On Thursday the Small Business Administration (SBA) proposed an overhaul of its small business size standards, intended to modernize how the federal government defines and classifies small businesses in the United States. The new standards would simplify industry categorization and raise applicable size thresholds, allowing small but rapidly growing firms to continue qualifying and adding more than 110,000 firms to the 36 million small businesses in the country. The proposed changes also streamline the existing 6-digit North American Industry Classification System (NAICS) structure to a 4-digit classification system that reduces total size standard categories from nearly 1,000 down to 338 broad industry groupings. Comments are due by September 21.
DOT Announces Funding for Airports, Ferry Infrastructure
Last week the Department of Transportation (DOT) made two funding announcements related to airports and ferry infrastructure. First, the Federal Aviation Administration (FAA) announced $615 million to improve runway and taxiway infrastructure, invest in family-friendly features in terminals, and support airfield safety upgrades in 42 states and two territories. A data visualization of projects receiving funding (filtered by Announcement A5) can be found here. Second, the Federal Transit Administration (FTA) announced $665 million to modernize ferry infrastructure via 23 projects in 14 states and the U.S. Virgin Islands. A list of projects can be found here.
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