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.

Featured This Week

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Advocacy

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. 

U.S. Department of Health and Human Services
Advocacy

HHS announces major restructuring

On March 27, the U.S. Department of Health and Human Services (HHS) announced a sweeping reorganization that will consolidate agencies, shift key programs under a new framework and eliminate thousands of positions. This change brings HHS in line with President Trump's Executive Order, “Implementing the President’s ‘Department of Government Efficiency’ Workforce Optimization Initiative.”

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Advocacy

EPA & U.S. Army Corps of Engineers revise Waters of the United States (WOTUS) definition

On March 12, the EPA and the U.S. Army Corps of Engineers issued a joint memorandum outlining the next steps to revise the “waters of the United States” (WOTUS) definition under the Clean Water Act. This follows the Supreme Court’s 2023 decision in Sackett v. EPA, which limits the EPA’s regulatory authority over wetlands without a “continuous surface connection” to traditional navigable waters.

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Advocacy

Both the Administration and Congress act on 'noncitizen voting:' What this could mean for counties

The U.S. House will consider the Safeguard American Voter Eligibility (SAVE) Act this week to require individuals to provide proof of citizenship to register to vote.

Municipal bonds

Municipal Bonds Advocacy Toolkit

America’s counties use tax exempt municipal bonds to invest in roads, bridges, public transportation, ports, libraries, police stations and more. Preserving the tax-exempt status of municipal bonds will ensure counties can build critical local infrastructure for residents without burdening taxpayers with higher costs.

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Advocacy

U.S. House begins reauthorization process for Drinking Water State Revolving Fund program

On August 27, leaders on the U.S. House Committee on Energy and Commerce announced the beginning of the reauthorization process for the Drinking Water State Revolving Fund (DWSRF) by circulating a discussion draft of the Safe Drinking Water Infrastructure Improvement Act of 2026. The discussion draft would reauthorize the DWSRF through fiscal year (FY) 2031 and authorize $1.126 billion annually for the program.

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Advocacy

USPS releases its final rule affecting mail-in voting for federal elections

The USPS released its final rule imposing new requirements on how state and local governments must administer mail-in voting, including new ballot envelope requirements and the creation of a national portal of mail-in voter data.

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Advocacy

Congress passes short-term funding bill, keeping the federal government funded through Dec. 11 and delaying OMB rule

The U.S. Congress passed a Continuing Resolution (CR) to extend government funding through December 11 and delay the OMB proposed rule on Unform Guidance that governs how every federal grant can be administered.

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Data Center Series: Water Use and Cooling

As the third session in NACo's Data Center Series, this call will focus on understanding water use and cooling of data centers.

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2026 NACo Energy Symposium

Armstrong, Carson and Potter Counties, Texas

Join county leaders from across the country in the Texas Panhandle to engage with the most pressing energy issues shaping rural America today. Hear from experts, exchange ideas with peers and gain practical insights into the policies, projects and partnerships driving rural energy development. 

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Webinar

More Choices, Stronger Counties: Introducing NACo Public Promise Insurance Supplemental Benefits

Join NACo's Public Promise Insurance program for an introductory webinar unveiling the new Supplemental Benefits Trust — a flexible menu of elective benefits counties can now offer to strengthen their employment packages at no direct cost to the county.
 
The Trust gives counties the ability to offer employees a broader range of voluntary coverage options, including:
 
 
This webinar will introduce MetLife and Trustmark, the awarded partners for this new offering, who will walk through plan design, enrollment logistics, and how counties can get started. Whether you're looking to attract talent, boost retention, or simply round out what you can offer your workforce, this session will give you the tools to evaluate whether the Supplemental Benefits Trust is right for your county.
 
Who should attend: County HR directors, benefits administrators, finance officers, and county executives interested in expanding employee benefit offerings.
 
What you'll learn:
 
 
Speakers:
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