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
New Law Brings Long-Sought Transparency to FEMA Disaster Reimbursements
A new federal law requires FEMA to publish a publicly accessible, interactive dashboard tracking all Public Assistance reimbursement requests, giving counties unprecedented visibility into disaster recovery funding.
Reflections on federalism at America 250
NACo CEO Matt Chase: "Counties are where federal and state policy stops being policy and starts being real. We are not a delivery mechanism for decisions made elsewhere. We are where American governance actually lives."
NACo joins letters calling on Congress to support water infrastructure funding and reauthorization
In April, NACo, alongside coalition partners representing local governments and water groups, sent two letters to Congress highlighting the importance of sustained federal investment in water infrastructure for counties and communities nationwide.
Upcoming Events
NACo Policy Insider Webinar Series: Understanding the Federal Landscape for Counties, May 7
Join NACo for a bi-weekly webinar offering an overview of the full federal policy landscape impacting counties.
2026 Elections: Local Government Roles and Responsibilities Webinar
Hosted by the Local Government Legal Center (LGLC), in partnership with the National League of Cities (NLC) and International Municipal Lawyers Association (IMLA) this webinar on May 11 from 1-2pm EST will host legal and election experts in a discussion regarding the regulatory and administrative responsibilities local elected and executive leaders, and election administrators should understand for the upcoming election cycle. This webinar will provide an overview of the new executive orders, and federal policies impacting the upcoming 2026 elections, as well as the legal parameters and the legislative proposals local governments should understand that may impact their roles and responsibilities for election administration.
Opportunity Zones 2.0: Economic Development and Community Revitalization
Tune in to hear directly from HUD leaders on how collaboration between housing and economic development can reshape communities.