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.
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.
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.”
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.
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 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.
Related News
House Natural Resources Committee advances Standardizing Permitting and Expediting Economic Development (SPEED) Act
On November 20, the U.S. House Committee on Natural Resources advanced the Standardizing Permitting and Expediting Economic Development (SPEED) Act (H.R. 4776), which would make important changes to streamline federal permitting and strengthen county involvement in decision-making by amending the National Environmental Policy Act. Counties support commonsense permitting reforms, and NACo secured provisions in the SPEED Act that would guarantee counties a seat at the table during federal environmental reviews.
U.S. Environmental Protection Agency releases new definition of the “waters of the United States”
On November 17, the U.S. Environmental Protection Agency and U.S. Army Corps of Engineers released a proposed rule defining what constitute the “waters of the United States” and are subject to federal regulation under the Clean Water Act. The new definition is narrower than previous rules and codifies the decision of U.S. Supreme Court in the 2023 case Sackett v. EPA.
Federal district court issues ruling preventing the federal government from imposing immigration compliance mandates on grant recipients
On November 4, a federal judge in Rhode Island ruled that the U.S. Department of Transportation cannot condition federal grant funding on a recipient’s cooperation with federal immigration enforcement efforts.
Upcoming Events
From Secure Collaboration to AI insights: Streamlining GIS Analysis, Field Work and Records Management
Join county government leaders as they share practical, battle-tested ways they’ve transformed operations in the age of AI — from consolidating content and replacing legacy file systems to securing mission-critical election workflows.
What to Expect from the Current Supreme Court Term: Cases Impacting Local Government
Hosted by the Local Government Legal Center (LGLC), join legal experts in a discussion of the new Supreme Court term and what decisions local governments should watch.
Investing in Tomorrow: Jones County's Blueprint for Financial Innovation
Friday, December 5, 2025 | 1:00 p.m. - 2:00 p.m. ET
Counties today face increasing pressure to make every public dollar count. Success depends not only on smart financial strategy, but also on strong communication across departments, with the community, and with the board of commissioners. Join Jones County Manager, Kyle Smith, Finance Director, Blake Batchelor, and three+one's Mike Abbott for a 30-minute conversation on how proactive, data-driven liquidity management is helping them plan more confidently, respond faster, and build trust throughout their community.
Attendees will hear how Jones County, N.C.:
- Adopted a forward-looking approach to liquidity and cash-flow forecasting through adopting cashVest by three+one
- Strengthened collaboration across departments and with county leadership • Modernized policies and systems to support future planning
- Communicated strategy and results to commissioners and residents
- Used real-time financial insight to pursue grants, capital projects, and long-term priorities
This session will provide practical guidance that county leaders can apply immediately, whether they are reviewing their investment policy, preparing for capital needs, or working to strengthen transparency with their governing board and community.
Register today to learn how a modern, collaborative approach to liquidity strategy can create value for your organization and the people you serve.
For more information, visit the event page!
Advocacy Hub
Through NACo, advocate for county priorities in federal policy making. Find our latest advocacy toolkits, federal policy analysis and more.