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
U.S. House Transportation & Infrastructure Committee introduces 2026 Water Resources Development Act
On June 26, the U.S. House Transportation and Infrastructure (T&I) Committee released text of the Water Resources Development Act of 2026 (WRDA). The WRDA legislation supports the U.S. Army Corps of Engineers by authorizing water resources studies and projects and sets policies for navigation, flood control, hydropower, recreation, water supply and emergency management for the U.S Army Corps of Engineers (Corps). WRDA 2026 authorizes 131 new feasibility studies and 10 new construction projects.
Senate Agriculture Committee introduces 2026 Farm Bill, following House passage
On June 23, Senate Agriculture Committee Chairman John Boozman (R-Ark.) introduced the Senate version of the 2026 Farm Bill, the Agricultural Act of 2026.
Counties Must Act Now: Submit Comments on OMB’s Proposed Overhaul of Federal Grant Rules
On June 17, NACo joined NLC, USCM, ICMA, NCSL, CSG, GFOA, NADO, AMPO, and NARC in requesting OMB Director Russell Vought for a 45 day extension for public comments to OMB’s proposed revisions to Title 2 of the Code of Federal Regulations (2 CFR), Part 200, Subtitle A, commonly referred to as Uniform Guidance for federal grants.
Upcoming Events
Congress Reaches Agreement on Major Housing Reform Package: What Counties Need to Know
Join us to learn what this legislation means for your county and how NACo advocacy helped shape the final language.
NACo Policy Insider Webinar Series: Understanding the Federal Landscape for Counties, July 2
Join NACo for a bi-weekly webinar offering an overview of the full federal policy landscape impacting counties.
Grassroots Advocacy Series: In-District Advocacy During Congressional Recess
This session will walk through NACo’s new recess advocacy guide and provide step-by-step guidance on engaging members of Congress while they are in their districts.