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
U.S. Environmental Protection Agency announces actions to combat PFAS contamination
On April 28, the U.S. Environmental Protection Agency (EPA) announced a new suite of upcoming actions to address contamination from per- and polyfluoroalkyl substances (PFAS). These measures, outlined by EPA Administrator Lee Zeldin, aim to strengthen scientific understanding, enhance enforcement and build partnerships with impacted communities, including counties and other local governments.
NACo testifies before Congress on brownfields revitalization
On May 7, Oswego County, N.Y. Clerk Terry Wilbur testified on behalf of NACo before the U.S. House Subcommittee on Water Resources and Environment at a hearing titled “Cleaning Up the Past, Building the Future: The Brownfields Program”.
County Countdown – May 6, 2025
Every other week, NACo's County Countdown reviews top federal policy advocacy items with an eye towards counties and the intergovernmental partnership. This week features
Upcoming Events
Inside Washington: County Impacts from the White House & Congress, Week 1
Join NACo’s Government Affairs team for a biweekly series on key developments from the White House and Congress. Discussions will focus on policies and actions that directly impact counties — from federal funding and regulatory changes to intergovernmental partnerships. Tune in every other week for an inside look at how these evolving federal dynamics may shape county priorities, responsibilities and operations.
Understanding the House Ways & Means Tax Proposal: Key Takeaways for County Governments
On May 12, the House of Representatives Ways and Means Committee released their proposed tax package, which includes trillions in tax cuts and changes to popular tax credits. Join NACo staff as they analyze key takeaways for counties on the tax proposal and share insights into the ongoing reconciliation process.
Safeguarding Taxpayer Assets: Inside Suffolk County’s Bank Account Collateralization Program
In today’s evolving regulatory and banking landscape, public entities must have clear visibility into their deposits, collateralization, and verification processes. Yet, many municipalities lack a comprehensive solution to streamline this complex responsibility.
Join Stephen Acquario (Executive Director, NYSAC), John M. Kennedy Jr. (Suffolk County Comptroller), and Alex DeRosa (Associate Vice President, three+one) as they host an inside look at how Suffolk County has implemented a cutting-edge bank account collateralization program. This session will explore:
How having a single point of reference for bank collateral enhances audit functions and strengthens financial oversight
Common misconceptions about collateralization programs—why more counties aren’t adopting them and whether implementation is as complex as it seems
The impact of a well-structured collateralization program on credit ratings and financial stability
Protecting taxpayer assets requires more than just compliance—it requires certainty. Discover how to bring transparency and security to your entity’s financial management.
Advocacy Action Hub
Through NACo, advocate for county priorities in federal policy making. Find our latest advocacy toolkits, federal policy analysis and more.