|
|
Increased in 48 States
GDP by State
Source
|
|
|
|
3.8%
GDP 2nd Q (3rd Est.)
Source
|
|
|
|
7.2 Million
Job Openings
Source
|
|
|
|
|
This Week in DC
The House is out, and the Senate is in session. Funding for the federal government expires at midnight absent a legislative deal (see story below).
|
|
|
Fiscal Year 2026 Federal Budget Update
The Senate is expected to vote again this afternoon on the House-passed “clean” continuing resolution (CR). If no deal on federal funding for federal fiscal year 2026 is reached in Congress today and signed by the President, the federal government will shut down at 12:01am on October 1. This would be a full government shutdown, as no appropriations bills have been enacted to date.
In the past, agency contingency plans for a lapse in appropriations were compiled and published on a website maintained by the Office of Management and Budget (OMB). However, that site now includes a message indicating the plans can be found on individual agency websites. Agency plans are being updated by many federal departments, including the following that may be of interest to states/territories: Department of Commerce, Department of Education, Environmental Protection Agency, Department of Health and Human Services, Department of Homeland Security, Department of Justice, Department of Labor, Department of Transportation, Department of the Treasury and Department of Veterans Affairs.
According to media reports, the Office of Management and Budget (OMB) sent a memo to federal agencies on preparing for a shutdown, including plans for personnel changes.
Additionally, the U.S. Office of Personnel Management (OPM) has prepared human resources guidance for federal agencies on shutdown furloughs and a helpful resource on the federal government shutdown from Federal Funds Information for States (FFIS) can be found here (subscription required).
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 Centers for Medicare and Medicaid Services (CMS) posted materials from a September 19 webinar on the Rural Health Transformation Program. CMS posted a recording, slides, and transcript from the event.
- The Internal Revenue Service (IRS) issued guidance on Qualified Opportunity Zone (QOZ) investments in rural areas as provided by the law. The guidance provides clarification on two provisions in OBBBA: the definition of “rural area” and the application of the substantial improvement threshold for certain improvements to property located in a QOZ that is comprised entirely of a rural area.
- KFF released an issue brief entitled “A Look at the Potential Impact of the High Unemployment Hardship Exception to Medicaid Work Requirements.” The brief describes the hardship exception and estimates the number of counties that could meet the criteria for this exception.
Supreme Court Pauses Lower Court Ruling on Pocket Rescission, Allows Funds to be Withheld
On Friday the U.S. Supreme Court issued an order that paused part of a lower court ruling related to the administration’s “pocket rescission” of approximately $4 billion in foreign aid spending. The ruling, issued on the court’s emergency docket, allows the administration to withhold the funds but notes “this order should not be read as a final determination on the merits. The relief granted by the Court today reflects our preliminary view, consistent with the standards for interim relief.” A press clip on the ruling can be found here. A report by the Congressional Research Service on pocket rescissions can be found here.
Federal Court Rules Against DHS Grant Terms and Conditions
Last Wednesday a federal judge for the U.S. District Court for the District of Rhode Island ruled in favor of plaintiff states in a case regarding several contested conditions attached to the award of federal grants under the Department of Homeland Security (DHS). On March 27, DHS revised the standard terms and conditions governing all federal grants it oversees, adding provisions requiring state and local recipients to certify that they will assist in enforcing federal immigration law. The judge ruled the “contested conditions are arbitrary and capricious.” The ruling found a permanent injunction is warranted and defendants are enjoined from enforcing the contested conditions against plaintiff states. A press clip on the ruling can be found here.
USDA Proposes Changes to SNAP Retailer Stocking, Urges WIC Oversight Actions
The U.S. Department of Agriculture (USDA) recently made two announcements related to nutrition programs. First, the Food and Nutrition Service (FNS) proposed changes to strengthen the stocking requirements for retailers participating in the Supplemental Nutrition Assistance Program (SNAP). Currently, SNAP retailers are required to stock three varieties of food in each of four staple food categories (dairy, protein, grain, and fruits and vegetables), 12 foods total. The proposed rule would increase variety requirements, close loopholes, and simplify how foods are classified. Second, FNS released a letter on promoting stronger vendor integrity and oversight in the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC). The letter encourages state agencies to increase oversight of WIC vendors through strategies including background checks, vendor training, monitoring/investigation/corrective action, improving high-risk vendor criteria, and conducting compliance investigations.
USDA Announces Funds for Community Projects to Reduce Wildfire Risk
Last week the U.S. Department of Agriculture (USDA) announced the Forest Service is investing $200 million in 58 projects through the Community Wildfire Defense Grant Program. The investments, via Congressionally mandated funding, help at-risk communities plan for and reduce wildfire risk. The selected projects span 22 states and two Tribes; the Forest Service will announce a fourth funding opportunity later this year. Information on funded proposals can be found here.
Education Announces Two New Supplemental Priorities
On Thursday the Secretary of Education announced her sixth and seventh proposed supplemental priorities for the Department of Education’s (ED) discretionary grants: Meaningful Learning and Career Pathways and Workforce Readiness. These Secretarial priorities will be used in grant competitions across ED to promote instructional models that strengthen core instruction, foster deep conceptual understanding, and offer personalized and meaningful learning opportunities, as well as to support career and technical education and work-based learning opportunities integrated into K-12 systems and higher education. The previous five supplemental priorities were evidence-based literacy, expanding education choice, returning education to the states, advancing AI in education, and prioritizing patriotic education.
Education Announces Grants for Charter Schools, American History
The Department of Education (ED) recently made two announcements on grant funding. First, the department announced the release of $500 million to the Charter Schools Program. Awards were made under all six Charter Schools Programs: State Entity, Charter School Management Organization, Developer, State Facilities, Credit Enhancement, and Model Dissemination and Development. Supplemental funding was also awarded to existing State Entity grantees to help meet the increased demand for charter schools. Second, ED announced more than $153 million in new grant awards through the American History and Civics Seminars Program. Grants are largely being awarded to institutions of higher education with independent civics centers and non-profit organizations focused on American History and civics education. A list of awardees can be found here.
HHS Secretary Renews PHE for Opioid Crisis
On September 18 the Secretary of Health and Human Services renewed, effective September 18, the determination that a public health emergency (PHE) exists nationwide as a result of the continued consequences of the opioid crisis. This is a renewal of the determination first made October 26, 2017 and renewed since then, with the most recent renewal effective June 20, 2025. Determinations generally last 90 days and can be discontinued or renewed by the Secretary.
ACF Announces States Selected for Redesigned TANF Pilot
Last week the Administration for Children and Families (ACF) announced the selection of Arizona, Iowa, Nebraska, Ohio, and Virginia to participate in the redesigned Temporary Assistance for Needy Families (TANF) pilot. The pilot will test innovative approaches to promote employment, reduce government dependency, and strengthen family outcomes. Authorized under the Fiscal Responsibility Act of 2023, the six-year pilot will replace the Work Participation Rate (WPR) and instead measure state success using new, outcome-based metrics.
FEMA Announces $3.5 Billion to States and Communities for Disaster Preparedness
On Monday the Federal Emergency Management Agency (FEMA) announced the award of nearly $3.5 billion to help states and local governments manage emergency preparedness. The funds are administered through FEMA’s non-disaster grant programs, a list of which is included in the announcement. The announcement notes the release follows an evaluation of all grant programs and recipients to identify waste, fraud and abuse. Allocations by state are not yet available.
DOL Issues Fiscal Year 2025 Guidelines for State Agency Unemployment Insurance Resources
Last week the Department of Labor (DOL) issued Unemployment Insurance Program Letter No. 17-25. The letter provides information to states about fiscal year 2025 Unemployment Insurance (UI) State Administration base resource allocations, general guidelines for resource planning, above-base funding, and Supplemental Budget Requests. An allocation table by state and territory is included in the document.
NTIA Releases Policy Memo on BEAD Last-Mile Requirements
The National Telecommunications and Information Administration (NTIA) recently released a policy memo on performance measures for last-mile networks in the Broadband Equity, Access, and Deployment (BEAD) Program. The performance measurement standards relate to speed, latency, and reliability of last-mile deployment projects required under the BEAD Program. The policy notice elaborates on, but does not replace, the BEAD Eligible Entity requirements outlined in the BEAD Notice of Funding Opportunity. Additional information on the requirements can be found here.
OMB Publishes 2026 Calendar of Key Economic Data Releases
The Office of Management and Budget (OMB) released the schedule of release dates for principal federal economic indicators for 2026. The schedule is arranged by agency and indicator, including indicators released by the Census Bureau, Bureau of Economic Analysis, and Bureau of Labor Statistics.
Administration Announces Actions to Support Coal Industry
On Monday the administration announced a series of actions to expand the country’s coal industry. The Department of Energy (DOE) announced a $625 million investment to expand and reinvigorate the industry, aiming to boost energy production and support coal communities nationwide. The funds are intended for multiple funding announcements including coal recommissioning and retrofit, rural capacity and energy affordability projects, wastewater management systems, and natural gas cofiring systems. The Environmental Protection Agency (EPA) unveiled two actions being taken by EPA to provide affordable energy while protecting human health and the environment. First, EPA will provide steam electric power generation with more time to comply with existing effluent limitations guidelines to affordably meet the nation’s growing electricity demand; this will be done through a proposed rule and companion direct final rule. Second, EPA is issuing an advance notice of proposed rulemaking to solicit information from the public to assist in the development of regulatory changes on the implementation and structure of the Clean Air Act’s Regional Haze Rule. The Department of the Interior (DOI) announced the opening of 13.1 million acres of federal land for coal leasing, lowering royalty rates to strengthen competitiveness, and streamlining approvals for projects in several states.
|
|
|
|
|
