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This Week in DC
The House and Senate are in session.
The House convenes Tuesday and will consider 15 bills including H.R. 6644, the 21st Century Road to Housing Act. For Wednesday and the balance of the week, the chamber will consider six bills, with additional legislative items possible. Committee activity scheduled for the week includes the Small Business Committee will hold a hearing Thursday on small home builders and the Homeland Security Committee will hold a hearing Thursday on state and local cybersecurity.
The Senate convened Monday and on Tuesday will resume consideration of a judicial nomination. The Senate continues to work on a bill, under the reconciliation process, to fund immigration and border security functions of the Department of Homeland Security. Committee activity scheduled for the week includes the Commerce, Science and Transportation Committee will hold a hearing Wednesday on sports betting and the Health, Education, Labor and Pensions Committee will hold a hearing Wednesday on charter schools.
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Reconciliation 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 U.S. Department of Agriculture (USDA) released questions and answers related to restrictions on internet expenses and treatment of energy assistance payments in the Supplemental Nutrition Assistance Program (SNAP) provisions of OBBBA. The questions and answers follow previously released memos on the provisions and are intended to provide additional information for implementation.
- The Department of Education (ED) announced a final rule to implement the Workforce Pell Grant program created under OBBBA. Workforce Pell allows Pell Grants to be used for workforce training programs that prepare individuals for employment in as little as eight weeks. Governors, in consultation with state workforce boards, will identify high-demand industries and career fields in order to determine which workforce programs are eligible to receive Workforce Pell Grant funds. A fact sheet can be found here.
House Committee Releases Bipartisan Surface Transportation Reauthorization Bill
On Sunday the leaders of the House Transportation and Infrastructure Committee released the text of a bipartisan, five-year surface transportation reauthorization bill. The BUILD America 250 Act invests in roads, bridges, transit, rail transportation, and highway and motor carrier safety programs. Included in the provisions is an annual registration fee, to be collected by each state, of $130 for a covered electric vehicle (EV) and $35 for a covered plug-in hybrid vehicle. Beginning in 2029, the administrator is required to biennially increase both fee amounts by $5, up to a specified maximum. If a state does not comply, the administrator must withhold a portion of the state’s highway apportionment. A section-by-section summary of the bill can be found here.
Administration Sends Letter to States on Prosecuting Medicaid Fraud
According to media reports, the Department of Health and Human Services (HHS) Office of Inspector General (OIG) sent a letter to states outlining HHS’s emphasis on Medicaid Fraud Control Unit compliance and efforts to combat fraud. Per this article, the administration has indicated that states may be at risk of losing funding for anti-fraud efforts along with resources within their Medicaid programs. Separately, the HHS OIG announced a study to determine the extent to which providers listed in the Data Exchange (DEX) system as revoked by Medicare or terminated by state Medicaid agencies were associated with Medicaid claims and encounters, as well as the amount of money paid for them. That study is estimated to be completed in fiscal year 2028.
CMS Announces Six-Month Moratorium on Medicare Home Health or Hospice Provider Signups
Last week the Centers for Medicare and Medicaid Services (CMS) announced the implementation of a six-month, nationwide moratoria on new Medicare enrollment for hospices and home health agencies (HHAs). During the moratoria, CMS will intensify targeted investigations, deploy data analytics, and accelerate the removal of hospice and HHA providers from the Medicare program that are suspected of committing fraud.
CMS Releases Final 2027 Notice of Benefit and Payment Parameters Rule
On Friday the Centers for Medicare and Medicaid Services (CMS) issued a final rule entitled “Notice of Benefit and Payment Parameters for 2027; Basic Health Program.” Provisions in the final rule include reinstating pre-enrollment verification for Special Enrollment Periods, requiring additional income documentation in certain cases, and aligning eligibility for advance payments of the premium tax credit with provisions in the One Big Beautiful Bill Act (OBBBA). CMS is removing the requirement for Qualified Health Plan issuers using HealthCare.gov to offer standardized plan options and limits on the number of non-standardized plan options issuers can offer while also allowing issuers to offer catastrophic plans with terms of up to ten consecutive plan years. Several provisions will allow states to strengthen oversight over their Exchanges by providing states flexibility to tailor their own certification reviews to address local market conditions. Beginning in plan year 2028, states will be required to defray the cost of benefits they mandate that are in addition to Essential Health Benefits (EHB), regardless of whether the benefit is in the state’s EHB-benchmark plan. A fact sheet on the final rule can be found here.
CMS Updates the Early and Periodic Screening, Diagnostic, and Treatment Coverage Guide
Last week the Centers for Medicare and Medicaid Services (CMS) released an updated Early and Periodic Screening, Diagnostic, and Treatment (EPSDT) Coverage Guide. The guide is intended to help states deliver the full scope of care for children covered by Medicaid or the Children’s Health Insurance Program (CHIP). The guide covers topics including establishing payment for screening services, ensuring a full range of treatment services, interagency coordination, cost effective alternatives, and managed care.
ACF Launches $7 Million “A Home for Every Child” Innovation Challenge
On Thursday the Administration for Children and Families (ACF) announced A Home for Every Child Innovation Challenge, a prize competition to incentivize jurisdictions to achieve the highest rate of improvement in their foster home-to-child ratios within a single year. Currently, for every 100 children entering foster care, only 57 licensed foster homes are available nationwide, according to the agency. A Home for Every Child sets a goal of achieving a ratio greater than 1:1 in every state. The challenge invites Title IV-E agencies to compete to demonstrate the most significant progress between October 1, 2026 and September 30, 2027. The deadline to register for the challenge is June 30.
FNS Releases SNAP Employment and Training Fiscal Management Tools
The Food and Nutrition Service (FNS) recently published the Supplemental Nutrition Assistance Program (SNAP) Employment and Training (E&T) Fiscal Management Toolkit. The toolkit is intended to provide state agencies with a practical, end-to-end framework for managing program funds strategically, transparently, and in alignment with program goals. The toolkit also includes the SNAP E&T fiscal life cycle, a five-stage framework that supports data-driven financial management throughout the year: plan, budget, spend, track, and report. The agency also posted a series of webinars on fiscal management, which can be found here.
APHIS Announces Funding to Support CWD Control and Prevention
Last Friday the U.S. Department of Agriculture’s Animal and Plant Health Inspection Service (APHIS) announced it will provide $12 million to support efforts by states and Tribal governments, research institutions, and universities to control and prevent chronic wasting disease (CWD) in wild and farmed cervids such as deer and elk. According to the announcement, APHIS will competitively fund the most promising projects that develop innovative tools or methods, support state and Tribal CWD control programs, and provide indemnity payments to cervid owners with pending claims. CWD is an infectious, degenerative disease of cervids that causes brain cells to die, ultimately leading to the death of the affected animal. Applications are due by June 15.
FEMA Approves More Than $5.4 Billion in Recovery Funding
On Wednesday the Federal Emergency Management Agency (FEMA) announced more than $5.4 billion to reimburse states, local governments, and health facilities for their costs to respond to the COVID-19 pandemic. The funds will be distributed through the agency’s Public Assistance Program to support 458 projects across the country; four additional projects are funded through the Hazard Mitigation Grant Program. The announcement notes that “FEMA remains focused on closing out pending COVID-19 projects as the recovery phase for this disaster has continued far beyond the agency’s timeline.”
FEMA Creating Public Assistance Dashboard
According to media reports, a provision in the recently enacted Homeland Security appropriations bill requires the Federal Emergency Management Agency (FEMA) to create an interactive dashboard on its public website tracking reimbursement requests tied to the Public Assistance program. FEMA must publish project-level information tied to reimbursement requests, including cost estimates, submission dates, project descriptions, and funding breakdowns. The data must be publicly accessible and updated as requests move through the federal review process, while meeting certain timelines. Additional information from the National Association of Counties can be found here.
Education Announces Funding to Support Students with Disabilities, Comprehensive Centers
Last week the Department of Education (ED) announced $144 million to help states expand proven interventions that support students with disabilities. The funds will be awarded this year for state and local agencies to use for Individuals with Disabilities Education (IDEA) programs. The department also announced new guidance for states to use IDEA funds to help expectant parents of infants with disabilities access information and tools and secure needed supports and services. The department also issued the fiscal year 2026 competition for the Comprehensive Centers Program, soliciting proposals to operate a National Center, Regional Centers, and Content Centers, including field-initiated centers that allow applicants to propose priorities based on states’ needs.
EPA Proposes Changes to PFAS Standards for Drinking Water, Grant Funding
On Monday the Environmental Protection Agency (EPA) announced a series of actions related to per- and polyfluoroalkyl substances (PFAS). A proposed rule would establish an opt-in process through which eligible drinking water systems may apply for up to two additional years – until 2031 – to come into compliance with enforceable limits for PFOA and PFOS. Systems that do not opt in would remain subject to the original 2029 compliance deadline. A second proposed rule takes comments on a regulation from the previous administration related to PFHxS, PFNA, HFPO-DA (GenX chemicals), and PFBS regarding if the actions adhered to the procedural and substantive requirements under the Safe Drinking Water Act. EPA also announced nearly $1 billion in grant funding to address PFAS and other emerging contaminants in drinking water through the Emerging Contaminants in Small or Disadvantaged Communities Grant.
DOL Announces Efforts to Combat UI Fraud
Last week the Department of Labor (DOL) and its Office of Inspector General (OIG) announced a partnership to help implement the executive order entitled “Establishing the Task Force to Eliminate Fraud.” The announcement notes the department and the OIG “will work together to safeguard American taxpayers and address widespread fraud and performance concerns related to the unemployment insurance (UI) programs administered across the country.”
DOL Releases Guidance on Administration of Certain CARES Act Programs
On Monday the Department of Labor (DOL) released Unemployment Insurance Program Letter No. 11-26 related to funding to support ongoing administration of certain Coronavirus Aid, Relief, and Economic Security (CARES) Act programs for the period of January 1, 2026 through June 30, 2027. The letter outlines funding opportunities for four different programs so state workforce agencies can continue to perform work to combat fraud and perform activities such as reconciling accounts and reports, recovering overpayments, retaining applicable data, and processing any workload backlogs.
DOT Announces Multiple Funding Opportunities and Investments
The Department of Transportation (DOT) made a series of funding announcements across components of the agency related to bridges, airports, aviation, and trucking. First, the department announced it is making $3 billion available for states to invest in aging bridge infrastructure through the Bridge Investment Program. The notice of funding opportunity offers two types of grants - planning grants and bridge project grants. Second, the department announced more than $750 million to replace eight air traffic control towers and Terminal Radar Approach Controls and also announced $85.8 million to upgrade Federal Contract Towers at 41 airports across 24 states. Third, DOT announced $970 million for airports to enhance the travel experience for families via 133 grants to airports in 45 states through the Airport Terminal Program. A data visualization of airports receiving funding can be found here. Lastly, the department announced $217 million for trucking and bus industries. The multiple grants will support states modernizing their commercial driver’s license (CDL) systems, fund safety enforcement training for law enforcement officers, support career training for current and former members of the military transitioning into the trucking industry, and help deploy innovative technologies.
Census Bureau Releases Data on Public Pensions
On Thursday the U.S. Census Bureau released the 2025 Annual Survey of Public Pensions, finding public pensions in the nation totaled more than $6 trillion. The survey provides revenues, expenditures, financial assets, and membership information about defined-benefit public pension systems. In 2025, employees contributed 24.8 percent and governments contributed 75.2 percent of the total $315.02 billion invested in state and local government pension plans. Statistics are available at the national level and for individual states.
Senate Confirms New Federal Reserve Chair
Last Wednesday the Senate voted 54-45 to confirm Kevin Warsh as the next chairman of the Federal Reserve for a four-year term. According to this press clip, Warsh will be sworn in by the President on Friday.
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