County Countdown – April 7, 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.
Budget reconciliation could reshape county services
Budget reconciliation remains the top item on our radar screen, with significant impacts expected for counties. Congress is moving forward with competing budget proposals that could impact programs related to health, infrastructure and public safety.
- New Senate plan: Sets a $1.5 trillion tax cap and includes a $5 trillion debt ceiling increase – an unprecedented shift in fiscal policy.
- House plan: Proposes $4.5 trillion in deficit reduction and $1.5 trillion in spending cuts, potentially affecting Medicaid and county services.
- County advocacy: NACo is undertaking extensive Hill outreach to protect key local priorities.
Major HHS restructuring announced
The U.S. Department of Health and Human Services announced last month that it will consolidate divisions, cut jobs and restructure services, impacting how counties interact with federal health programs.
- New agency structure: Twenty-eight divisions become 15, regional offices shrink from 10 to five and 20,000 jobs will be cut.
- Service disruptions: Counties may face delays in funding, support and regulatory input as a result of this transition.
- Reduced engagement: New policy limits public comment to legally required instances, diminishing local voices.
Federal rulemaking shifts for Waters of the U.S.
From climate to clean water, regulatory changes are underway during the Trump administration’s first 100 days – many with direct county implications.
- WOTUS narrowed: New EPA and Army Corps guidance for Waters of the U.S. limits federal jurisdiction to wetlands with direct surface connections.
- Infrastructure impact: Stormwater, green infrastructure and water reuse systems could be affected.
- Ongoing advocacy: NACo insists local perspectives be reflected in all new rulemaking, as counties are both regulators and regulated when it comes to WOTUS.
Executive order targets county-run elections
A new executive order proposes major changes to election rules that would significantly affect county election officials – many of whom manage elections in their states.
- Key mandates: The executive order includes calling for proof of citizenship for voter registration, making ballots due by Election Day and implementing Department of Homeland Security voter roll reviews.
- Tied to federal funding: States must show “reasonable steps” to secure elections or risk losing funding.
- Local burden: Counties must adjust systems and staffing with limited resources ahead of 2026 elections.
Municipal bonds under threat
NACo is working to protect the tax-exempt status of municipal bonds – an essential tool for financing local infrastructure.
- Big cost risk: Repealing the exemption would raise borrowing costs by $823 billion.
- Wide usage: Over 61,000 small projects under $10 million used tax-exempt bonds in the past decade.
- New support: A “Dear Colleague” letter led by Congressman Don Bacon is circulating – counties should ask their congressional representatives to sign on.
Related News
Counties face tax structure question on data centers
While the property taxes on the land that data centers occupy can be significant, the value of the equipment inside is a substantial addition to the total value.
The "Backslash Backlash:" Counties pivot in the data center buildout
Data center development across the country has put a new focus on county policies, how they regulate land use and more for local residents and how they could shape the path for economic growth built around artificial intelligence and information technology.
Chips, Compute and Counties
NACo CEO Matt Chase: "The fundamentals remain the same [when it comes to data centers]: demand a seat at the table, study the supply chain, understand the financing capital stacks, ask hard questions and fight for a deal that leaves your community better off — not used and abused."
Upcoming Events
Countdown to LUCA: Practical Strategies for Local, Tribal and State Governments
Join us for the first webinar in a series focused on practical steps communities can take to prepare for effective census participation.
The Bipartisan American Affordability and Jobs Act: What Counties Need to Know about Federal Permitting Reform
Join NACo staff to learn more about how recently-introduced legislation would modernize the federal permitting process, reduce unnecessary delays, accelerate project delivery and ensure local expertise is incorporated into federal decision-making.
NACo Policy Insider Webinar Series: Understanding the Federal Landscape for Counties, November 5
Join NACo for a bi-weekly webinar offering an overview of the full federal policy landscape impacting counties.