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
The quiet shift from courthouse to statehouse
NACo CEO Matt Chase writes: “Taxation policy and service delivery decisions are being moved, state by state, from the courthouse to the statehouse. The accountability lands on us. The authority to meet it increasingly doesn’t.”
Census Bureau proposes permanent changes to the 2030 Decennial Census
On September 10, the U.S Census Bureau published a proposed rule to the 2030 Decennial Census that would create two new parts of the 15 Code of Federal Regulations (CFR) that among other changes would a) define “usual residence” that excludes foreign persons previously counted that are not U.S. citizens or lawful residents, and b) would eliminate any questions about race, ethnicity and sexual orientation from the census questionnaire used to enumerate the population. The proposed ruling outlines only 30 days for public comments, which are due on October 13.
U.S. Senators introduce bipartisan comprehensive permitting reform package with major county wins
On Sep. 30, the leaders of the U.S. Senate Environment and Public Works Committee and the Senate Energy and Natural Resources Committee introduced the Bipartisan American Affordability and Jobs Act of 2026 (S. 5653), a comprehensive, bipartisan permitting reform package that would make major changes to several federal environmental protection statutes.
Upcoming Events
NACo Policy Insider Webinar Series: Understanding the Federal Landscape for Counties, October 8
Join NACo for a bi-weekly webinar offering an overview of the full federal policy landscape impacting counties.
NACo Public Promise Procurement Launches New Amazon Business Contract
Wednesday, September 23, 2026 | 1:00 p.m. - 2:00 p.m. ET
Learn how your county can access over 300 million products and hundreds of thousands of third-party sellers through this new, nationally solicited Amazon Business contract, featuring fixed-term price ceilings across eight categories to keep your everyday purchasing compliant and cost-effective.
This contract works alongside your county's existing Amazon Prime membership, not in place of it, and activates through your current Amazon Business account executive; no new relationships required. You'll also get tools to customize how your county spends, including the ability to prioritize local and in-state businesses.
Hear directly from Douglas County, Neb., the Lead Public Agency behind this solicitation, on how the contract came together and learn how NACo's member-governed, peer-reviewed process gives your county confidence in every purchase.
NACo Policy Insider Webinar Series: Understanding the Federal Landscape for Counties, October 22
Join NACo for a bi-weekly webinar offering an overview of the full federal policy landscape impacting counties.
Advocacy Hub
Through NACo, advocate for county priorities in federal policy making. Find our latest advocacy toolkits, federal policy analysis and more.