County Countdown – May 6, 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 begins in the House
Congress has entered a new phase in the reconciliation process, with House committees releasing legislative proposals that will shape major fiscal policy decisions affecting counties.
- County priorities: NACo is advocating for protecting tax-exempt municipal bonds, restoring the full state and local tax (SALT) deduction, strengthening the Low-Income Housing Tax Credit and educating lawmakers about the federal-state-local partnership for Medicaid and human services.
- Local impact: Counties manage 44% of U.S. roads, run 1,900 public health departments and invest $743 billion annually. Given this robust and far-reaching role, federal budget decisions directly affect service delivery.
- Balanced approach: Counties seek fair federal funding decisions to avoid shifting burdens onto local governments with limited taxing authority.
Reauthorize Secure Rural Schools in reconciliation
NACo is also urging Congress to include reauthorization of the Secure Rural Schools (SRS) program in the reconciliation bill to prevent major funding shortfalls for rural counties.
- Funding lapse: SRS expired in 2024, leading to an 80% drop in U.S. Forest Service payments this year. This reduction in revenue threatens education, roads and emergency services.
- Urgent fix needed: Reauthorization is critical to avoiding deeper strain on already under-resourced rural communities.
2025 Rural Innovation Summit
More than 60 rural development leaders gathered at NACo HQ for the 2025 Rural Innovation Summit to collaborate on federal advocacy and strengthen rural policy.
- Key voices: Sen. Amy Klobuchar and Rep. Angie Craig highlighted rural-local-federal collaboration in their keynote remarks.
- Top issues: Summit participants discussed broadband, housing, health care, economic growth and U.S. Department of Agriculture (USDA) Rural Development programs.
- Coalition building: NACo and 59 partners delivered a letter urging robust rural development funding in the 2026 budget.
Bipartisan push for rural housing reform
U.S. Sens. Mike Rounds and Tina Smith have reintroduced the Rural Housing Service Reform Act to modernize and strengthen USDA rural housing programs.
- Key reforms: The bill includes permanent authorization of preservation programs, expanded eligibility, tech investments and improved transparency.
- County role: Local governments are essential in housing support and welcome federal reforms to tackle rural housing challenges.
- Broad support: Counties back this bipartisan bill as a critical tool to preserve affordable rural housing.
First 100 Days series continues as policy webinar series
Thanks to all who joined NACo’s First 100 Days series. Due to high interest and fast-moving federal activity, we have decided to continue offering deep dives into the mechanics of what’s happening in Washington.
- What’s next: A new biweekly policy webinar series will offer in-depth updates on federal executive orders, legislation and regulatory changes.
- County focus: Each session will center on how federal actions impact county operations and priorities.
- Stay informed: Registration information for this new series is coming soon. Meanwhile, recordings of previous 100 days episodes and additional resources are available at NACo.org.
Full schedule now available for 2025 NACo Annual Conference
Join us July 11–14 in the City and County of Philadelphia, Pa. for NACo’s 90th Annual Conference, featuring policy steering committee meetings, innovation sessions and invaluable networking opportunities.
- What to expect: Workshops, steering committee sessions and the latest NACo tools and resources.
- Who’s coming: Thousands of county leaders from across the U.S. will attend the nation's largest gathering of county government officials.
- Register now: Explore the full schedule and secure your spot today.
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.
USFS begins disbursement of revenue sharing payments amid lapse in SRS funding
On April 11, the U.S. Department of Agriculture’s Forest Service began distributing funds to support public schools and roads in counties containing national forest lands.
2025 Rural Innovation Summit brings together rural development leaders at NACo headquarters
On April 10, NACo hosted the 2025 Rural Innovation Summit at its Washington, D.C. headquarters, convening more than 60 rural development leaders, practitioners, policymakers and advocates for a day of in-depth policy dialogue, partnership building and federal advocacy.
Congressional leaders reintroduce bipartisan bill to protect rural housing
On April 7, Senators Mike Rounds (R-S.D.) and Tina Smith (D-Minn.) reintroduced the Rural Housing Service Reform Act, bipartisan legislation that would help preserve affordable housing and stabilize rental assistance for rural county residents across the country.
NACo Membership Series: First 100 Days
Join NACo's membership series focusing on timely updates and analysis on key developments during the first 100 days of the Trump administration. These calls will focus on policies and actions that directly impact counties, including federal funding, regulations and intergovernmental partnerships.
2025 NACo Annual Conference & Exposition
Save the date for the 2025 NACo Annual Conference, the premier gathering of elected and appointed officials from the nation’s 3,069 counties, parishes and boroughs.
Related News
Counties talk about tax-exempt municipal bonds during 2025 Infrastructure Week
On May 13, during the 13th Annual Infrastructure Week, NACo hosted a working group discussion titled “The Case for Tax-Exempt Municipal Bonds” with Commissioner Eileen Higgins of Miami-Dade County, Fla.
U.S. House committees mark up budget reconciliation titles: What it means for counties
Counties should continue to advocate for county priorities to be included in the final budget reconciliation bill.
White House releases FY 2026 Budget Request: Top Highlights to Counties
The President’s budget requests cutting non-defense discretionary funding by 23 percent, amounting to $163 billion, and proposes a 7.6 percent spending cut to discretionary spending.
Upcoming Events
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.
Inside Washington: County Impacts from the White House & Congress, Week 2
Join NACo’s Government Affairs team for week two of 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 for an inside look at how these evolving federal dynamics may shape county priorities, responsibilities and operations.