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.

Featured This Week

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Advocacy

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. 

U.S. Department of Health and Human Services
Advocacy

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.”

Curving road along Mississippi River during autumn
Advocacy

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.

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Advocacy

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

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

Roane County, Tenn. Mayor Wade Creswell describes his county's infrastructure support for nuclear workforce development. Photo by Charlie Ban
County News

Eastern Tennessee counties collaborate on nuclear energy ambitions

Decades after the Manhattan Project, cooperation among Roane, Anderson and Knox counties in Tennessee drives toward a high profile for nuclear power.

White House
Advocacy

White House issues Executive Order to change federal grantmaking process

On August 7, President Trump issued an Executive Order (EO) titled “Improving Oversight of Federal Grantmaking,” aiming to strengthen accountability, coordination and oversight in the federal grantmaking process.

Vehicle Emissions
Advocacy

EPA releases proposal to repeal 2009 greenhouse gas endangerment finding

On July 29, the Environmental Protection Agency (EPA) released a proposal to rescind the 2009 endangerment finding. Following the announcement from EPA Administrator Lee Zeldin, the U.S. Department of Energy (DOE) published a supporting report—A Critical Review of Impacts of Greenhouse Gas Emissions on the U.S. Climate.  

Upcoming Events

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Webinar

Understanding the Homelessness Executive Order: Federal Shifts, County Impacts and Next Steps

Join NACo on Tuesday, August 26 at 3:00 p.m. ET for a timely webinar outlining major changes to federal funding, grant conditions, and policy priorities that directly affect county homelessness programs, behavioral health systems and enforcement strategies.

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Webinar

The Big Shift and Cash Management - 5 Takeaways

Wednesday, August 27, 2025 | 1:00 p.m. - 2:00 p.m. ET

The financial landscape for counties is evolving quickly, with rising costs, shifting federal support and growing expectations becoming part of everyday reality. This is what many are calling “the Big Shift,” a period that is reshaping how counties plan, prioritize and manage resources. In this webinar, Mike Ablowich, a seasoned public finance leader and Vice President at three+one, will share what the Big Shift means for counties today and five actionable strategies to help leaders remain proactive, confident and effective during this time of change. From strengthening liquidity management to using data to guide impactful actions, you will gain practical tools and insights you can put to work right away to protect your county’s financial health and unlock new opportunities, no matter how the environment continues to evolve.

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.

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Conference

2025 Federal-State Policy Exchange

Cook County, Ill.

The National Council of County Association Executives (NCCAE) and the National Association of Counties (NACo) will host the Federal-State Policy Exchange (formerly, the Knowledge Management Forum), August 27-29 in Cook County (Chicago), Ill.

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