DOI Announces Action on Colorado River Water Supply
The Department of the Interior’s (DOI) Bureau of Reclamation provided an update on water supply in the Colorado River system, noting long-term drought has reduced the system’s storage to about 36 percent of capacity. Lake Powell’s water year minimum probable inflow is forecasted at 29 percent of historical average, one of the lowest on record. The Interior Secretary met with governors for the seven basin states and their designees to discuss plans for operations. To stabilize the system, the bureau’s initial plans include adding water to Lake Powell by moving water from the upstream Flaming Gorge Reservoir and reducing releases from Lake Powell. Additional actions are outlined in the release, which also notes a final decision will be coming in the next week following feedback from stakeholders.
FERC Notes Upcoming Action on Large Load Interconnection
Last Thursday the Federal Energy Regulatory Commission (FERC) announced it will take action by June 2026 on the advance notice of proposed rulemaking proceeding initiated by the Department of Energy (DOE) in October 2025. The department directed the commission to initiate rulemaking procedures to rapidly accelerate the interconnection of large loads, including data centers. The proposed rule allows customers to file joint, co-located load and generation interconnection requests. DOE’s press release and letter can be found here.
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This Week in DC
The House and Senate are in session.
The House convened Monday and considered seven bills. For Tuesday and the balance of the week, the chamber will consider ten bills with additional legislative items possible.
The Senate convened Monday and on Tuesday is expected to release a budget resolution, the first step in the reconciliation process. The scope of the resolution is expected to be narrowly focused on immigration, customs enforcement, and border patrol funding.
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Treasury Releases SLFRF Newsletter for April
The Treasury Department recently posted the State and Local Fiscal Recovery Funds (SLFRF) April 2026 newsletter. The newsletter includes updates on upcoming SLFRF reporting webinars, newly released reporting resources, and the closeout corner. The upcoming webinar series is open to all recipients of the SLFRF program to assist with successful submission of their 2026 annual or first quarter Project and Expenditure reports, which are due on April 30. Registration information is included in the newsletter.
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) issued a policy memo providing instruction to select states regarding the implementation of changes to Supplemental Nutrition Assistance Program (SNAP) eligibility for aliens in OBBBA, in the wake of judicial action. The memo addresses the start date of the quality control variance exclusionary period.
- The Centers for Medicare and Medicaid Services (CMS) released two resources for implementation of the Rural Health Transformation Program (RHTP). The agency released post-award FAQs and a fact sheet on program funding for workforce initiatives.
- The Department of Education (ED) issued a notice of proposed rulemaking to establish a postsecondary education accountability framework as authorized by OBBBA. Under the proposed rule, earnings of graduates are tied to eligibility for federal student loans.
- The Internal Revenue Service (IRS) updated frequently asked questions in Fact Sheet 2026-10 related to educational assistance programs. The frequently asked questions contain revised information about the programs generally, including how the rules apply to certain qualified education loans and provide updates related to OBBBA amendments.
House Begins Fiscal Year 2027 Appropriations Process
Last week the House Appropriations Committee began working on fiscal year 2027 spending bills. The proposed markup schedule can be found here.
CMS Administrator Announces Medicaid Fraud Enforcement Effort
According to media reports, on Tuesday the Administrator for the Centers for Medicare and Medicaid Services (CMS) announced a nationwide plan to reduce Medicaid fraud. The administrator announced the agency will require all states to submit a plan within 30 days on how they will revalidate Medicaid providers.
DOT Secretary Sends Letter to Governors on Highway Congestion
The Secretary of the Department of Transportation (DOT) and the Federal Highway Administration (FHWA) recently launched the Freedom to Drive initiative, an opportunity for states to collaborate with DOT on tackling increasing congestion corridors across the country. The effort aims to save drivers time and money by focusing on maximizing roadway capacities, fast-tracking projects that alleviate congestion chokepoints, and leverage American technology and private-sector partnerships. The Secretary sent a letter to governors, asking them to partner with DOT to address congestion and implement an action plan that includes identifying critical bottlenecks in their states and outlining actions to be taken to address congestion.
Census Bureau Releases State Government Tax Collections, Public Employment Data
The Census Bureau recently released two data collections related to state governments. First, Census released new tables and files containing detailed data from its 2025 Annual Survey of State Government Tax Collections, including taxes imposed and collected by state governments and the District of Columbia. These data cover five broad tax categories and up to 25 tax subcategories. Second, Census released a new summary report and data tables for the 2025 Annual Survey of Public Employment and Payroll. These statistics provide a comprehensive look at the employment of the nation’s state and local governments. In addition to the new 2025 data, the bureau also released revised tables for 2023 and 2024.
ACF Posts Fiscal Year 2024 TANF Work Participation Rate Letters
The Administration for Children and Families (ACF) recently published the federal letters issued to all states and territories for fiscal year 2024 related to work participation requirements in the Temporary Assistance for Needy Families (TANF) program. The announcement notes that to better highlight how each state and territory engages TANF families in work activities, ACF has redesigned its annual Work Participation Rate letters. The letters now show how many TANF families with a work-eligible individual are actively working or participating in work programs on average each month. Looking at the national results for fiscal year 2024, 35.4 percent of families with a work-eligible individual met TANF’s work requirement.
ACF Launches Research Hub for Title IV-E Prevention Plans
On Monday the Administration for Children and Families (ACF) announced the launch of an interactive map and accompanying research hub that provides public access to the status of state Title IV-E Prevention Plans and the full, approved plans. The interactive map provides a user-friendly view of each state’s prevention plan status, indicating whether a plan is approved, under review, or not yet submitted. Users can explore state-specific details and see which evidence-based services from the Title IV-E Prevention Services Clearinghouse are included in each plan.
FNS Announces School Nutrition Funding
On Thursday the Food and Nutrition Service (FNS) awarded the first cohort of fiscal year 2026 Patrick Leahy Farm to School grants. For the fiscal year the agency will award nearly $20 million to support projects that bring more nutritious, local food to schoolchildren while expanding economic opportunities for farmers and food producers. The first cohort of grantees includes grants for 52 projects; additional grants will be awarded in the future. Project descriptions can be found here. The agency also opened applications for $20 million in National School Lunch Program Equipment Assistance Grants. These grants help schools modernize kitchen infrastructure to allow the preparation and serving of healthier meals. Any state agency operating the program is eligible to apply for a grant; applications are due by May 28.
ED and DOL Announce Additional Grant Competitions
Last week the Departments of Education (ED) and Labor (DOL) issued the fiscal year 2026 competitions for the Supporting Effective Educator Development (SEED) Grant Program and the Charter Schools Program Grants to State Entities (CSP-SE). The SEED grant program is intended to increase the number of highly effective educators by supporting the implementation of evidence-based practices that prepare, develop, or enhance the skills of educators. Applications are due by June 1. The CSP-SE funds will be used for new grantees to open new charter schools or to replicate and expand high-quality charter schools nationwide. Applications are due by June 18.
DOJ Extends Deadline for Web Accessibility Requirements for Public Entities
On Monday the Department of Justice (DOJ) published an interim final rule and request for comments to extend the compliance dates for the requirements for web content and mobile application accessibility that were adopted on April 24, 2024. On that date the department published a final rule setting forth technical requirements for the web content and mobile apps that state and local government entities “provide or make available, directly or through contractual, licensing, or other arrangements.” Under the newly published interim final rule, the compliance date for state and local government entities with a total population of 50,000 or more is extended from April 24, 2026 to April 26, 2027. The compliance date for public entities with a total population of less than 50,000, or any special district government, is extended from April 26, 2027 to April 26, 2028. Comments on the change are due by June 22.
EPA Launches Two Initiatives Focused on Water
Last week the Environmental Protection Agency (EPA) announced two water-focused initiatives. First, EPA launched a new initiative entitled PFAS OUTreach, or PFAS OUT. The new effort seeks to proactively work with communities and water systems to reduce exposure to PFOA and PFOS in drinking water, ahead of compliance with federal regulatory requirements. The outreach will provide practical, interactive location-specific resources, including webinars and information, on how to access funding and technical assistance to address PFAS. EPA aims to directly engage about 3,000 drinking water systems nationwide that have known challenges with PFOA and PFOS. Second, the agency launched the Water Reuse Action Plan (WRAP) 2.0, aimed at harnessing the power of water reuse for industry, the artificial intelligence future, and American energy dominance. WRAP 2.0 is not a federal regulatory mandate but instead will lean on collaborative partnerships to advance reuse that strengthens key sectors of the U.S. economy.
EPA Issues Title V Permitting Guidance
On Friday the Environmental Protection Agency (EPA) issued guidance intended to streamline the Clean Air Act (CAA) title V operating permit renewal process. The guidance reaffirms EPA’s long-term position that the agency’s state, local, and Tribal air permitting partners do not need to require or be provided additional information from the original title V application to meet CAA requirements when an entity is renewing an unchanged permit. Under the CAA, applicable stationary sources are required to obtain operating permits, known as title V permits, from the source’s respective air permitting authority. The agency’s guidance clarifies that if a permit’s terms are unchanged, then there is minimal information that needs to be submitted under federal law for the permit’s renewal.
FERC Notes Upcoming Action on Large Load Interconnection
Last Thursday the Federal Energy Regulatory Commission (FERC) announced it will take action by June 2026 on the advance notice of proposed rulemaking proceeding initiated by the Department of Energy (DOE) in October 2025. The department directed the commission to initiate rulemaking procedures to rapidly accelerate the interconnection of large loads, including data centers. The proposed rule allows customers to file joint, co-located load and generation interconnection requests. DOE’s press release and letter can be found here.
DOI Announces Action on Colorado River Water Supply
The Department of the Interior’s (DOI) Bureau of Reclamation provided an update on water supply in the Colorado River system, noting long-term drought has reduced the system’s storage to about 36 percent of capacity. Lake Powell’s water year minimum probable inflow is forecasted at 29 percent of historical average, one of the lowest on record. The Interior Secretary met with governors for the seven basin states and their designees to discuss plans for operations. To stabilize the system, the bureau’s initial plans include adding water to Lake Powell by moving water from the upstream Flaming Gorge Reservoir and reducing releases from Lake Powell. Additional actions are outlined in the release, which also notes a final decision will be coming in the next week following feedback from stakeholders.
DOT Announces Funds for Modernizing Rail Infrastructure
On Monday the Department of Transportation (DOT) announced a $2.04 billion investment into the modernization of the country’s rail infrastructure. According to the announcement, the department will support projects that reduce congestion, jumpstart ridership growth on passenger railroads, improve regional railroad infrastructure, and develop safety programs to prevent trespassing and reduce injuries and fatalities. The funds are available through the Consolidated Rail Infrastructure and Safety Improvements (CRISI) Program and applications are due by June 22. The department also announced a $4.7 billion investment into rail projects on Amtrak’s Northeast Corridor to enhance travel for families. The funds will be used for upgrading train station infrastructure, streamlining rail services, and rebuilding rail bridge infrastructure. Applications are due by May 5.
President Signs Executive Order on Medical Treatments for Serious Mental Illness
On Saturday the President signed an executive order entitled “Accelerating Medical Treatments for Serious Mental Illness.” The order directs the Food and Drug Administration (FDA) to provide Commissioner’s National Priority Vouchers to appropriate psychedelic drugs that have received Breakthrough Therapy designations for treating serious mental illnesses and meet the criteria of the voucher program. The order also directs the Secretary of Health and Human Services to allocate $50 million to match investments made by state governments to advance research into psychedelic programs for populations with serious mental illness. A fact sheet on the order can be found here.
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