** 08/26/25 - NASBO Washington Report - Reconciliation Resources + Education Sends Dear Colleague Letter on Equitable Services.................

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Sep 1, 2025, 6:49:55 PM (4 days ago) Sep 1
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Reconciliation Resources

Following enactment of H.R. 1, the One Big Beautiful Bill Act (OBBBA), several resources have been released examining potential impacts of the bill and providing implementation resources.
  • The Internal Revenue Service (IRS) issued frequently asked questions (FAQs) relating to the modification of multiple sections under the law to provide guidance on several energy credits and deductions that are expiring under OBBBA and their termination dates. The FAQs also provide clarification on the availability of the new clean vehicle credit, the energy efficient home improvement credit, and the residential clean energy credit.
  • The Internal Revenue Service (IRS) invited the public to participate in a feedback survey on tax preparation and filing options. The survey is being conducted as part of the IRS’s efforts to fulfill a reporting requirement to Congress under the OBBBA, with a report due by October 2, 2025 on several key issues related to free tax filing options for the public. Survey responses are due by September 5.
  • The Department of the Interior (DOI) took two actions to implement provisions of the law. First, DOI released a long-term schedule for offshore oil and gas lease sales to offer the oil and gas sector clarity and stability, encouraging continued investment. Second, DOI announced an update to the oil and gas commingling rules to align with the law. The update provides clear standards that support safe operations, improve efficiency, and maximize recovery of energy resources.
  • The Congressional Budget Office (CBO) released additional information on the ways the law will affect the ability of certain groups of people to obtain health insurance coverage through the Marketplaces established by the Affordable Care Act (ACA) and the extent to which enrollees are improperly receiving the premium tax credit for that coverage. The analysis also looks at the effects of a final rule published by the Department of Health and Human Services in June 2025 on Marketplace integrity and affordability.
  • KFF published a report entitled How Will the 2025 Reconciliation Law Affect the Uninsured Rate in Each State? The analysis allocates estimates from the Congressional Budget Office (CBO) of additional uninsured people across the states and the District of Columbia.
  • The Tax Foundation published a brief examining possible consequences from the tax treatment of gambling losses in the law.
    

Education Sends Dear Colleague Letter on Equitable Services

Last Thursday the Department of Education (ED) issued a Dear Colleague Letter to State and Local Education Agencies (SEAs and LEAs) with additional guidance on how they might provide equitable services for students enrolled in private schools in more efficient and effective ways. Under the Elementary and Secondary Education Act (ESEA), eligible private school students are entitled to Title I-A funded equitable services, which can include one-on-one tutoring, summer school programs, and counseling programs. Specifically, the letter focuses on ways SEAs can help their LEAs provide Title I equitable services efficiently while effectively supporting LEAs; under some circumstances, the SEA might serve as the Title I equitable services provider in place of the LEA. This is the fourth piece of guidance the department has issued on expanding education choice options under the ESEA and the previous guidance documents are included in the announcement.
 




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August 26, 2025

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This Week in DC  

The House and Senate are out until September.
 

Reconciliation Resources

Following enactment of H.R. 1, the One Big Beautiful Bill Act (OBBBA), several resources have been released examining potential impacts of the bill and providing implementation resources.
  • The Internal Revenue Service (IRS) issued frequently asked questions (FAQs) relating to the modification of multiple sections under the law to provide guidance on several energy credits and deductions that are expiring under OBBBA and their termination dates. The FAQs also provide clarification on the availability of the new clean vehicle credit, the energy efficient home improvement credit, and the residential clean energy credit.
  • The Internal Revenue Service (IRS) invited the public to participate in a feedback survey on tax preparation and filing options. The survey is being conducted as part of the IRS’s efforts to fulfill a reporting requirement to Congress under the OBBBA, with a report due by October 2, 2025 on several key issues related to free tax filing options for the public. Survey responses are due by September 5.
  • The Department of the Interior (DOI) took two actions to implement provisions of the law. First, DOI released a long-term schedule for offshore oil and gas lease sales to offer the oil and gas sector clarity and stability, encouraging continued investment. Second, DOI announced an update to the oil and gas commingling rules to align with the law. The update provides clear standards that support safe operations, improve efficiency, and maximize recovery of energy resources.
  • The Congressional Budget Office (CBO) released additional information on the ways the law will affect the ability of certain groups of people to obtain health insurance coverage through the Marketplaces established by the Affordable Care Act (ACA) and the extent to which enrollees are improperly receiving the premium tax credit for that coverage. The analysis also looks at the effects of a final rule published by the Department of Health and Human Services in June 2025 on Marketplace integrity and affordability.
  • KFF published a report entitled How Will the 2025 Reconciliation Law Affect the Uninsured Rate in Each State? The analysis allocates estimates from the Congressional Budget Office (CBO) of additional uninsured people across the states and the District of Columbia.
  • The Tax Foundation published a brief examining possible consequences from the tax treatment of gambling losses in the law.
 
 

Administration Releases Certain CDC Grant Funds

According to media reports, last week funding for several health programs administered by the Centers for Disease Control and Prevention (CDC) was being released to grantees. The release follows the approval of agency spending plans for specific grants by the Office of Management and Budget (OMB), which had paused the release of funds since at least the end of July. The funding supports activities including youth violence prevention programs, public health emergency preparedness, tobacco research, and research on chronic disease, totaling at least $200 million.
 
 

Treasury Releases ERA Closeout Checklist

On Monday the Treasury Department published the Standard Closeout Checklist for Emergency Rental Assistance 2 (ERA2) awards. ERA2 grantees can use this checklist to support successful submission of their final report to close out their ERA2 award. Last week the department published the ERA2 Final Report User Guide, which provides step-by-step guidance on completing and submitting the final report.
 
 

CMS Launches Effort on Citizenship Requirements in Medicaid and CHIP

Last week the Centers for Medicare and Medicaid Services (CMS) launched an oversight initiative to ensure that enrollees in Medicaid and the Children’s Health Insurance Program (CHIP) are U.S. citizens, U.S. nationals, or have a satisfactory immigration status. According to the announcement, CMS will begin providing states with monthly enrollment reports identifying individuals whose citizenship or immigration status could not be confirmed through federal databases. States are responsible for reviewing cases, verifying citizenship or immigration status, requesting additional documentation if needed, and taking appropriate actions when necessary, including adjusting coverage or enforcing non-citizen eligibility rules.
 
 

CMS Releases T-MSIS Behavioral Health Data Book

Last week the Centers for Medicare and Medicaid Services (CMS) released the 2022 Transformed Medicaid Statistical Information System (T-MSIS) Behavioral Health Data Book and accompanying static tables. This is a publicly available compendium of the number of Medicaid and Children’s Health Insurance Program (CHIP) beneficiaries with a substance use disorder (SUD) or a mental health (MH) condition and the services they received to understand trends within these populations and inform policy decisions.
 
 

ACF Launches TANF Project to Assist with Work and Education Outcomes Reporting

The Administration for Children and Families (ACF) recently launched the Temporary Assistance for Needy Families (TANF) Outcomes Technical Assistance and Logistics (TOTAL) project. The project is intended to provide compliance support to state TANF programs responding to new statutory work outcomes reporting requirements and related activities enacted by the Fiscal Responsibility Act of 2023 (P.L. 118-5). The TOTAL website highlights support and resources for both TANF pilot states and all states and territories on reporting work and education outcomes, including FAQs and webinars. One resource posted to the site includes best practices to improve TANF survey response rates for the law’s secondary school attainment measure.
 
 

ACF Sends Letter to 46 States and Territories on Educational Material Content

Today the Administration for Children and Families (ACF) sent letters to 46 states and territories demanding an update to their federally-funded Personal Responsibility Education Program (PREP) educational materials to remove all references to gender ideology within 60 days. According to the announcement, the letters serve as notice and failure to comply will result in enforcement actions including the withholding, suspension, or termination of federal PREP funding. A table of funding amounts by state and territory can be found here.
 
 

FNS Releases WIC Guidance on Available Flexibilities

The Food and Nutrition Service (FNS) recently released a policy memorandum for the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC). The memo clarifies state agency flexibility to implement changes to the WIC food packages in ways that support the administration’s commitment to encourage healthy choices, healthy outcomes, and healthy families through federal nutrition programs. A final rule on WIC food packages was published on April 18, 2024 and state agencies have until April 20, 2026 to implement most of the changes in the final rule. To help with implementation, FNS also released a series of questions and answers and a table on state agency options and select federal requirements.
 
 

USDA Restricts Funding for Solar Panels on Farmland

Last week the U.S. Department of Agriculture (USDA) announced the department would no longer support taxpayer funds for solar panels on productive farmland or allow solar panels manufactured by foreign adversaries to be used in USDA projects. Effective immediately, USDA will implement two programmatic actions. First, for the Rural Development Business and Industry Guaranteed Loan Program, wind and solar projects are not eligible. Second, for the Rural Energy for America Program (REAP) Guaranteed Loan Program, ensure those utilizing wind and solar energy sources will install units that are right-sized for their facilities.
 
 

Education Sends Dear Colleague Letter on Equitable Services

Last Thursday the Department of Education (ED) issued a Dear Colleague Letter to State and Local Education Agencies (SEAs and LEAs) with additional guidance on how they might provide equitable services for students enrolled in private schools in more efficient and effective ways. Under the Elementary and Secondary Education Act (ESEA), eligible private school students are entitled to Title I-A funded equitable services, which can include one-on-one tutoring, summer school programs, and counseling programs. Specifically, the letter focuses on ways SEAs can help their LEAs provide Title I equitable services efficiently while effectively supporting LEAs; under some circumstances, the SEA might serve as the Title I equitable services provider in place of the LEA. This is the fourth piece of guidance the department has issued on expanding education choice options under the ESEA and the previous guidance documents are included in the announcement.
 
 

Education Updates Policy on Use of Federal Work Study Funds

Last week the Department of Education (ED) rescinded guidance that allowed Federal Work Study (FWS) programs to pay students to engage in certain partisan and nonpartisan political activities. The department also released new guidance clarifying that institutions should focus FWS funds on jobs that provide real-world work experience. The guidance also clarifies that the Higher Education Act does not require institutions to distribute voter registration forms to students known to be ineligible to vote.
 
 

EPA Announces Changes to Use of Incinerators After Natural Disasters

On Friday the Environmental Protection Agency (EPA) issued an interim final rule (IFR) intended to reduce barriers to the temporary-use Commercial and Industrial Solid Waste Incinerators (CISWI) for natural disaster debris removal and provide state, local and Tribal governments the ability to quickly and effectively clean up their communities. Currently, only Other Solid Waste Incinerators (OSWI) are authorized to combust debris from a disaster or emergency on a temporary basis without having to comply with Clean Air Act (CAA) section 129 requirements. EPA is now authorizing temporary-use provisions for incinerators and Air Curtain Incinerators (ACI) subject to CISWI regulations; they authorize the combustion of non-hazardous debris from a disaster or emergency for up to eight weeks without EPA approval. CISWI are required to continue to run existing pollution control equipment and use of CISWI units beyond eight weeks requires EPA approval.
 
 

NEH Announces Reorganization of Grantmaking Functions

On Wednesday the National Endowment for the Humanities (NEH) announced an agency-wide reorganization to consolidate its grantmaking programs and divisions. Following a reduction in force of the agency’s staff in June, NEH will merge the functions and staff of seven grantmaking offices and divisions into four new divisions to support projects on humanities research, education, public programs, infrastructure, and cultural preservation. The new divisions are as follows: Division of Federal/State Partnership, Division of Collections and Infrastructure, Division of Lifelong Learning, and Division of Research.
 
 

DOL Releases Fiscal Year 2026 State Workforce Agency UI Resource Planning Targets

On Thursday the Department of Labor (DOL) released Unemployment Insurance Program Letter No. 15-25 related to fiscal year 2026 state workforce agency unemployment insurance (UI) resource planning targets and guidelines. The letter is intended to provide states with information about preliminary fiscal year 2026 UI State Administration base resource planning targets, with general guidelines for resource planning, and an explanation of how DOL allocates base resources among the states. Allocation pages by state and territory are included in the letter.
 
 

FTA Proposes Update to Rating Criteria for Transit Grants

On Thursday the Federal Transit Administration (FTA) announced the agency proposed updated guidelines to remove the “social cost of carbon” calculation as part of the rating criteria for transit grants under the Capital Investment Grants (CIG) program. The CIG Program is the federal government’s largest discretionary grant program to fund transit capital investments, including heavy rail, commuter rail, light rail, streetcars, and bus rapid transit. If the proposal is finalized, FTA will revert to a previously used methodology that relies on the Environmental Protection Agency National Ambient Air Quality Standards (NAAQS) designation based on which city a transit project is located. Comments on the proposed updates are due by September 2.
 

Recently Released Reports

The Child Tax Credit: How It Works and Who Receives It
Congressional Research Service
 
2025 State and Local Government Workforce Survey Results
MissionSquare Research Institute
 
Rate Setting for Medicaid Home- and Community-Based Services
Medicaid and CHIP Payment and Access Commission
 

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