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
NACo calls for OMB to extend public comment period for proposed rule overhauling sweeping changes to federal grants and hosts webinar with record attendance
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.
OMB proposes major change to federal grant administration
Counties have until July 13 offer comment on a wide-reaching regulation affecting federal grants to counties. A NACo webinar goes into detail about the changes counties need to note as they budget for federal awards.
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.
Upcoming Events
Bolstering Operations and Trust in Your County through Election Excellence
Join us for a discussion with county election officials from across the country to learn about the U.S. Alliance for Election Excellence’s newly launched nonpartisan Certification Program and how it can support efforts in your county to strengthen operations, increase public trust, and recognize excellence.
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.
Island-Strong Finances: How Kauai County Built Resilience from the Inside Out
Tuesday, May 26, 2026 | 2:00 p.m. - 3:00 p.m. ET
Hawaii's counties carry a unique weight: the responsibility of serving tight-knit communities while managing the financial pressures that come with island life. For Kauai County, the Garden Island, that responsibility has meant building a financial foundation strong enough to weather uncertainty from the inside out. With a $550 million budget and a community navigating rising housing costs, shifting economic drivers, and the ongoing demands of core public services, every dollar counts.
In this session, Kauai County Treasurer Nancee Robles shares how her office partnered with three+one to generate over $20 million for county programs. Join NACo and three+one's Vice President of Client Servicing, Mike Ablowich, alongside Treasurer Robles for a conversation about what it means to protect taxpayer dollars, serve your community with integrity, and what counties across the country can learn from Kauai's approach.
This webinar is brought to you by NACo EDGE, establishing people, purchasing, and performance cost-saving solutions that can be applied to counties nationwide. EDGE is owned by NACo, advised by county leaders and 100% focused on solutions for U.S. Counties. Learn more about NACo EDGE here.
For more information, visit the event page!
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