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
Senate passes bill to fund the government through December 11 and delay OMB Rule
The U.S. Senate 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.
U.S. Senate Energy and Natural Resources Ranking Member introduces legislation to protect ratepayers from costs of data center expansion
On August 3, Senate Energy and Natural Resources Committee Ranking Member Sen. Martin Heinrich (D-N.M.) introduced the Guarding Ratepayers from Increased Demand-costs (GRID) Savings Act of 2026. The proposed legislation would create a process for large electricity users to pay for any infrastructure costs associated with increased demand for the electric grid.
Senate Agriculture Committee holds Farm Bill markup, remains in committee
On August 6, the U.S. Senate Agriculture Committee held a markup of the Agricultural Act of 2026, the Senate's version of the 2026 Farm Bill.
Upcoming Events
NACo Policy Insider Webinar Series: Understanding the Federal Landscape for Counties, August 13
Join NACo for a bi-weekly webinar offering an overview of the full federal policy landscape impacting counties.
Ready for November: Make Every Week Count
Want to make the most of the weeks leading up to the midterm elections and wondering what additional steps could strengthen your county's readiness? Whether you're refining existing plans or identifying where to focus next, this webinar will help you prioritize practical, high-impact actions you can take before November.
Join the Center for Tech and Civic Life (CTCL) for a conversation perfect for county IT professionals, emergency managers, and election administrators. You'll hear from election security experts who will share practical approaches to scenario planning, cross-functional coordination, and operational preparedness that can be implemented in the months and weeks leading up to Election Day.
The session will focus on what counties can realistically accomplish with the time, staff, and infrastructure you already have while highlighting additional tools, perspectives, and publicly available resources from trusted partners. You'll leave with actionable next steps to strengthen your county's election security and readiness before November 3rd.
Funding Your Future: Mapping County Technology to Grant Opportunities
Ready to turn your communications modernization plans into funded reality? This webinar provides a practical roadmap for aligning technology initiatives with available grant funding in justice reform, rural health, mental health, and public safety.
We will share firsthand experience navigating the funding landscape and successfully securing support for technology investments and break down specific funding sources and demonstrates how to position Zoom solutions within grant applications.
Advocacy Hub
Through NACo, advocate for county priorities in federal policy making. Find our latest advocacy toolkits, federal policy analysis and more.