County Countdown – April 21, 2025
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Every other week, NACo's County Countdown reviews top federal policy advocacy items with an eye towards counties and the intergovernmental partnership.
ARPA reporting deadline next week
Next Wednesday, April 30, is the deadline for counties to submit Project and Expenditure Reports for the American Rescue Plan Act State and Local Fiscal Recovery Fund.
- Required for all counties: To remain in compliance with the reporting requirements, all counties must submit a report, including counties that have already spent their entire ARPA allocation.
- Detail is key: When submitting the Project and Expenditure Report, provide as much detail as possible to ensure Treasury officials have a clear picture of how funds were obligated to support communities and residents.
- NACo is here to help: If you have received a notice of noncompliance, please reach out to NACo for support.
Congress moves forward on reconciliation
Both the House and Senate have adopted budget proposals. Counties are closely monitoring the potential impacts of the reconciliation process on local priorities, including the preservation of tax-exempt municipal bonds.
- Support for county priorities: Last week, 12 members of the House of Representatives sent a letter to House leadership expressing concerns over major cuts to Medicaid, and a bipartisan Dear Colleague letter also in the House shared support for preserving the tax-exempt status of municipal bonds.
- Timeline: Congress is looking to move quickly on this reconciliation process, with the goal of delivering a reconciliation bill to President Trump by the end of May.
FEMA announces cancellation of disaster mitigation funding
On April 4, FEMA announced it will not allocate $750 million this year for the Building Resilient Infrastructure and Communities (BRIC) grant program. The cancellation follows a broader review of FEMA grants and a recent executive order by President Trump emphasizing state and local responsibility for disaster preparedness.
- What is BRIC: Counties are directly eligible for BRIC, which funds hazard mitigation projects aimed at reducing long-term disaster risks and costs.
- County impact: The cancellation of BRIC funding could lead to disruptions to or cancellation of county projects, additional costs for counties and reduced capacity for long-term risk reduction.
- NACo action: While FEMA continues to evaluate its overall grant portfolio and priorities, NACo and our Intergovernmental Disaster Reform Task Force remain committed to modernizing federal disaster policies; strengthening intergovernmental partnerships; and enhancing local disaster mitigation, response and recovery capacities.
HHS terminates funding for mental and behavioral health programs
The U.S. Department of Health and Human Services has terminated funding for at least five county-eligible federal health programs previously set to run through September 2025.
- Impacted programs: The Community Mental Health Services Block Grant Supplement and the Substance Use Prevention, Treatment, and Recovery Supplemental Grants – both of which counties rely on to provide critical prevention and treatment services for substance use disorders – are examples of impacted programs.
- Impact on local public health: The abrupt loss of funding affects the stability of local public and behavioral health systems, including 988 crisis call centers, prevention initiatives and community health worker programs.
Congress considers reauthorization of county cybersecurity program
Authorized under the Bipartisan Infrastructure Law, the State and Local Cybersecurity Program (SLCGP) provides critical funding to state and local governments to enhance cybersecurity readiness and protection. The $1 billion program is set to expire on September 30, 2025 unless it is reauthorized by Congress.
- Benefits to counties: The SLCGP requires state recipients to pass through 80% of funding to local governments, strengthening counties’ cybersecurity readiness and ability to respond to and protect against cybersecurity threats.
- Take action: County leaders should reach out to their members of Congress to urge them to reauthorize the program and ensure continuity of funding for critical cybersecurity efforts.
What Counties Need to Know: ARPA SLFRF Reporting Deadline
As counties continue to implement projects under the American Rescue Plan Act’s (ARPA) State and Local Fiscal Recovery Funds (SLFRF) program, accurate and timely reporting remains critical. To support counties in preparing their 2025 Annual or Q1 Project and Expenditure (P&E) Reports – due April 30, 2025 – NACo has developed the below frequently asked questions (FAQs) guide.
U.S. Congress begins work on budget reconciliation process: What this means for counties
The House and Senate Budget Committees have marked up Fiscal Year (FY) 2025 budget resolutions to initiate the budget reconciliation process to enact policy priorities without garnering bipartisan support, although the two chambers differ in their approach to drafting the legislation.
Federal judge temporarily halts BRIC grant program termination
August 6, 2025 Update: A federal court has temporarily blocked the Trump administration from reallocating funds from FEMA’s Building Resilient Infrastructure and Communities (BRIC) program after 20 states sued to halt the move, arguing it would endanger communities by undermining disaster preparedness efforts.
HHS issues termination notices for health grant funding
On March 25, the U.S. Department of Health and Human Services (HHS) sent letters to state authorities and counties with direct grant funding announcing the immediate termination of several pandemic-related grants, which was previously set to run through September 2025.
U.S House Subcommittee Considers Reauthorization of the State and Local Cybersecurity Grant Program
The SLCGP provides critical funding to state and local governments to enhance cybersecurity readiness and protection but is set to expire on September 30, 2025.
SEC Finalizes FTDA Phase 1 Final Rule
On June 8, the U.S. Securities and Exchange Commission (SEC), in coordination with other federal financial regulatory agencies, finalized a rule implementing the Financial Data Transparency Act of 2022 (FDTA) marking the completion of Phase 1 out of 2.
CMS Issues Interim Final Rule on Medicaid Community Engagement Requirements
On June 1, 2026, the Centers for Medicare & Medicaid Services (CMS) issued an Interim Final Rule with Comment Period (IFR) establishing binding standards for how states must implement Medicaid community engagement ("work") requirements enacted under the One Big Beautiful Bill Act (P.L. 119-21), also referred to as H.R. 1.
White House Signs Executive Order on Increased Cybersecurity Defense for AI
The White House EO directs multiple federal agencies to strengthen cybersecurity capabilities and improve the secure deployment of advanced AI technologies.
NACo urges adequate FY 2027 Census Bureau funding to support the 2030 Census
NACo urges Congress to fully fund the U.S. Census Bureau in FY 2027, consistent with the administration’s budget request, to support 2030 Census preparation.
Treasury publishes new Do Not Pay matching program notice; NACo evaluating for comment
On May 18, the U.S. Department of the Treasury (Treasury) published a Federal Register notice establishing a new computer matching program under the Privacy Act of 1974. The notice authorizes Treasury to compare records held by about 40 of its programs against the Do Not Pay (DNP) Working System, a centralized verification portal operated by Treasury’s Bureau of the Fiscal Service. NACo will be submitting comments.
From Concept to Impact: How Counties are Successfully Evaluating the Use of AI
AI is transforming county government, but responsible adoption requires more than enthusiasm. In late 2025, the New York State Association of Counties (NYSAC) partnered with CAI to tackle a critical question: how can counties objectively evaluate AI tools for cost, security, data protection, and real-world fit? The answer became the GovAI Trustmark, a first-of-its-kind AI certification framework built by and for county government, launched in the spring of 2026. In this NACo webinar, the practitioners who were part of the workgroup will share the process in building this online evaluation dashboard and how it can work for counties nationwide.
Strategies for Sustainable Retiree Health Benefits
This session will provide practical guidance for navigating the rapidly evolving Group Medicare landscape while balancing affordability, compliance, and retiree satisfaction.