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+0.7%
GDP (Second Estimate)
Source
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This Week in DC
The House and Senate are in session.
The House convened and considered multiple bills. For the balance of the week the chamber will consider four bills, including proposing an amendment to the U.S. Constitution requiring a balanced budget for the federal government. Committee activity scheduled for the week includes the Energy and Commerce Committee will hold a hearing Tuesday on combatting Medicare and Medicaid fraud and a hearing Wednesday on lowering health care costs.
The Senate convened and continues consideration of a judicial nomination followed by a possible vote on a motion to take up a voter ID bill (S. 1383). Committee activity scheduled for the week includes the Environment and Public Works Committee will hold a hearing Wednesday on the Endangered Species Act and the Committee on Homeland Security and Governmental Affairs will hold a hearing Wednesday and business meeting Thursday for the nomination of Markwayne Mullin to be Secretary of Homeland Security.
The Federal Reserve’s Federal Open Market Committee holds its March meeting this week and will announce any actions related to interest rates on Wednesday.
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IRS Proposes Guidance to Clarify Bond Proceeds for State and Local Governments
The Internal Revenue Service (IRS) published a notice of proposed rulemaking in the Federal Register related to guidance on tax-exempt refunding bonds. The proposed regulations would update certain arbitrage rules and definitions applicable to tax-exempt and other tax-advantaged bonds by clarifying the time and manner for requesting refunds of overpayment of rebate to the U.S., the special transition rule for transferred proceeds, the limitation on allocations to expenditures, and the IRS address for filing defeasance notices. The proposed regulations would also revise the provision addressing certain perpetual state guarantee funds, the definition of tax-exempt bond, and the definition of refunding issue. Comments are due by May 11.
President Signs Executive Order Establishing Task Force to Eliminate Fraud in Benefit Programs
On Monday the President signed an executive order entitled “Establishing the Task Force to Eliminate Fraud.” The Vice President will serve as Chairman of the task force and members will include representatives from multiple federal agencies. The task force is charged with coordinating and accelerating a comprehensive national strategy to stop fraud, waste and abuse within federal benefit programs, including programs jointly administered with state, local, Tribal, and territorial partners. The task force is directed to coordinate measures to improve eligibility verification, implement pre-payment controls, detect high-risk fraud trends, and disrupt and dismantle fraud networks and the mechanisms through which fraud is committed. Within 90 days, each member of the task force must submit a measurable implementation plan concerning the measures identified or developed under the executive order. A fact sheet on the order can be found here.
Judge Issues Order on Release of BRIC Funds
A federal judge recently issued an order in a lawsuit filed by a group of states against the Federal Emergency Management Agency (FEMA) regarding the Building Resilient Infrastructure and Communities (BRIC) program. The grant program provides funding to states to help protect against damage from natural disasters and earlier in 2025 FEMA announced it would end the program. According to media reports, in December a judge ruled against this action. The recently issued order directs FEMA to take steps to enforce the December decision and make progress in awarding BRIC funding, including the release of a notice of funding opportunity.
HUD Delays Repeal of 30-Day Eviction Notice Rule
On Friday the Department of Housing and Urban Development (HUD) published a notice in the Federal Register delaying the effective date of the interim final rule revoking the 30-day notification requirement for eviction due to non-payment of rent in certain types of housing. The interim final rule, published on February 26, originally set an effective date of March 30, 2026. HUD is now treating the interim final rule as a proposed rule and the effective date is delayed indefinitely pending consideration of public comments.
CMS Releases Informational Bulletin on Managed Care Monitoring and Oversight
On Thursday the Centers for Medicare and Medicaid Services (CMS) released an informational bulletin on Medicaid and Children’s Health Insurance Program (CHIP) managed care monitoring and oversight. The bulletin is intended to provide resources to aid states’ monitoring and oversight of managed care in Medicaid and CHIP to improve integrity and accountability in managed care programs. Per the bulletin, one of the goals of managed care are conceptually to contain costs while ensuring high quality of care and CMS expects that states will hold managed care plans accountable. The bulletin summarizes recently released guidance, issues reminders and clarifications on program operations, outlines reporting requirements, and highlights key operational and program requirements.
HRSA Announces Ryan White HIV/AIDS Formula Funds Methodology Change
On Monday the Health Resources and Services Administration (HRSA) announced updates to the funding methodology used to calculate Ryan White HIV/AIDS Program Parts A and B formula awards. For fiscal year 2026, the Parts A and B formula awards are transitioning to using the number of living HIV/AIDS cases based on a person’s most recent street address, rather than residence at the time of HIV diagnosis. This transition will be implemented over a five-year period beginning in fiscal year 2026 through fiscal year 20230 to minimize disruption and allow recipients and systems of care time to adapt. This change was outlined in a notice to the Federal Register on November 10, 2025.
FNS Releases Data on Fiscal Year 2024 SNAP Processing Timeliness Rates
The Food and Nutrition Service (FNS) recently released information looking at processing timeliness rates by state and territory in fiscal year 2024 for the Supplemental Nutrition Assistance Program (SNAP). FNS evaluates application and recertification processing timeliness as part of the quality control review process. For recertification processing timeliness calculations, FNS removes client-based delays, using only agency-caused delays to monitor state agency compliance with statutory requirements. In calculating application processing timeliness, in some cases applicant-caused delays may result in the action being coded as untimely even though the state agency was in full compliance with program regulations.
Energy Announces Funding Opportunities for Grid Infrastructure, Critical Minerals
Last week the Department of Energy (DOE) announced two funding opportunities. First, the department announced $1.9 billion to accelerate needed upgrades to the nation’s power grid. Selected projects will demonstrate how reconductoring – replacing existing power lines with higher-capacity conductors – paired with other Advanced Transmission Technologies can expand grid capacity and lower prices for consumers. Concept papers are due by April 2. Second, DOE announced a funding opportunity up to $500 million to expand U.S. critical mineral and materials processing and derivative battery manufacturing and recycling. Funding awarded through this opportunity will support demonstration and/or commercial facilities for processing, recycling, or utilizing for manufacturing of critical materials. Letters of intent are due by March 27.
HUD Appeals Temporary Injunction on Changes to Homelessness Program
Last week the Department of Housing and Urban Development (HUD) announced an appeal of the federal district court’s preliminary injunction related to proposed changes to the Continuum of Care (CoC) program. In November 2025, HUD released the fiscal year 2025 CoC notice of funding opportunity that redirected the majority of funding to transitional housing and supportive services and required 70 percent of projects to be competed. In December a federal judge granted a preliminary injunction against the action; per a press clip, the decision required HUD to maintain the status quo in its CoC funding. The department is now appealing this injunction.
DOL Announces Core States for National Effort to Expand Employment Opportunities for Individuals with Disabilities
Last week the Department of Labor (DOL) announced six states and the District of Columbia will participate as “core states” in fiscal year 2026 in the National Expansion of Employment Opportunities Network initiative. The six states are Colorado, Kansas, Kentucky, Maine, New York, and Tennessee. The selection will help connect government agencies with targeted, ongoing technical assistance aimed at expanding job opportunities and improving the financial well-being of Americans with mental health conditions, including those with co-occurring disabilities. The current cohort will focus on deepening state agency partnerships and supporting efforts leading to sustainable employment outcomes for individuals with mental health conditions.
VA and DOJ Announce New Effort to Initiate Legal Guardianships for Vulnerable Veterans
On Wednesday the Departments of Veterans Affairs (VA) and Justice (DOJ) announced the signing of a memorandum of understanding (MOU) to assist vulnerable veterans. According to the announcement, VA cares for hundreds of veterans who are unable to make their own health care decisions and have no family or legal representation to help them; this includes some veterans who are homeless or at risk of homelessness. The MOU gives DOJ the authority to appoint VA attorneys as special assistant U.S. attorneys, giving them the legal authority to initiate and participate in state court guardianship or conservatorship proceedings in cases where a legal decision-maker is required for post-acute transitions of care for vulnerable veterans.
Senate Passes Housing Affordability Bill
On Thursday the Senate voted 89-10 to approve a bipartisan housing bill that comprises more than three dozen provisions designed to increase housing supply, lower costs, and streamline regulations. The Senate approved a substitute amendment that makes changes to the House-passed version, which advanced on a vote of 390-9 last month. The Senate version includes a provision backed by the White House to curb the ability of large investors to purchase single-family homes. Fact sheets and a summary of the bill can be found here. The bill now moves back to the House, where it is uncertain at this time if the chamber will pass the legislation in its updated form or instead move to negotiate compromise language.
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