HomeMy WebLinkAbout051826 - NACo Policy Insider – May 18_ 2026ALERT: BE CAUTIOUS This email originated outside the organization. Do not open attachments or click on links if you are not expecting them.
Your weekly briefing on federal policies affecting America’s counties
May 18, 2026
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Welcome to this week's NACo Policy Insider – your weekly update on federal policies, funding decisions and legislative activity impacting counties nationwide.
Seven minute total estimated read time – jump to section:
* Topline of the week
* NACo in action
* County impact & action needed
* What's next
Topline of the Week
Major federal developments affecting counties
Transportation: House unveils landmark transportation bill as NACo prepares to bring county voices to Capitol Hill during Infrastructure Week
This week, NACo will convene nearly 30 county leaders in Washington, D.C. for a transportation advocacy fly-in as part of Infrastructure Week. County officials will meet with Capitol
Hill staff, members of Congress and engage with the White House, urging the inclusion of key county priorities in the surface transportation reauthorization package ahead of the September
30, 2026 deadline. The timing couldn't be better: the House Transportation and Infrastructure Committee unveiled the BUILD America 250 Act this week, with markup scheduled for Thursday,
May 21. Read NACo’s policy update. <https://public-usa.mkt.dynamics.com/api/orgs/227b4c5a-99e5-4698-be04-ef85d0384bf3/r/8u2Da6xBXECsRqzONsIAAAMAAAA?msdynmkt_target=%7B%22TargetUrl%22%3A%22https%253A
%252F%252Fwww.naco.org%252Fnews%252Fhouse-transportation-infrastructure-committee-releases-bipartisan-surface-transportation%22%2C%22RedirectOptions%22%3A%7B%221%22%3Anull%7D%7D&msdynmkt_digest=bLaoh
8kIA2422caewqVwk43mUcNYBQu4sWTuJf7RmQ0%3D&msdynmkt_secretVersion=a3955a744d9049f88dd8bdc1907bf2bf> <https://public-usa.mkt.dynamics.com/api/orgs/227b4c5a-99e5-4698-be04-ef85d0384bf3/r/8u2Da6xBXECsRq
zONsIAAAQAAAA?msdynmkt_target=%7B%22TargetUrl%22%3A%22https%253A%252F%252Fwww.naco.org%252Fnews%252Fhouse-transportation-infrastructure-committee-releases-bipartisan-surface-transportation%22%2C%22Re
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Housing: House unveils revised housing package with key county wins
On May 13, the House introduced an amended version of the Senate-passed 21st Century ROAD to Housing Act (H.R. 6644 <https://public-usa.mkt.dynamics.com/api/orgs/227b4c5a-99e5-4698-be04-ef85d0384bf3/
r/8u2Da6xBXECsRqzONsIAAAcAAAA?msdynmkt_target=%7B%22TargetUrl%22%3A%22https%253A%252F%252Fwww.congress.gov%252Fbill%252F119th-congress%252Fhouse-bill%252F6644%252Ftext%22%2C%22RedirectOptions%22%3A%7
B%225%22%3Anull%2C%221%22%3Anull%7D%7D&msdynmkt_digest=T8901eVP9VmH5MSVqhPgSPfjsLgpoyZRgXlVZAz1ig8%3D&msdynmkt_secretVersion=a3955a744d9049f88dd8bdc1907bf2bf> ), with floor consideration
expected as soon as May 20. The revised legislation reflects direct county feedback and includes several NACo-supported improvements: penalties under the CDBG-linked Build Now Act are
capped at $1 million, the program timeline is shortened from 15 to 5 years, and the emergency declaration exemption window expands from 1 to 5 years — providing critical flexibility
for counties in disaster-prone states. The revised bill also eliminates divestment requirements for large institutional investors and fully exempts build-to-rent developments. NACo
will continue engaging as the bill moves toward a final vote. Read NACo's policy update. <https://public-usa.mkt.dynamics.com/api/orgs/227b4c5a-99e5-4698-be04-ef85d0384bf3/r/8u2Da6xBXECsRqzONsIAAAgA
AAA?msdynmkt_target=%7B%22TargetUrl%22%3A%22https%253A%252F%252Fwww.naco.org%252Fnews%252Fhouse-unveils-revised-housing-package-key-county-wins%22%2C%22RedirectOptions%22%3A%7B%221%22%3Anull%7D%7D&ms
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Permitting: USDA announces new NEPA environmental review regulations
On May 12, USDA Rural Development announced it will adopt USDA's new department-wide National Environmental Policy Act (NEPA) framework, following a final rule published in April. The
new regulations affect how counties participate in environmental reviews for projects funded by USDA or occurring on U.S. Forest Service land. In a win for counties, the final rule
clarifies that agencies must invite counties to participate as cooperating agencies when a federal review will also be used for local siting decisions. NACo will monitor implementation,
particularly in rural counties, and continues to support legislation such as the SPEED and CERTAIN Acts to ensure consistent cooperating agency rights across all federal agencies. Read
NACo's policy update. <https://public-usa.mkt.dynamics.com/api/orgs/227b4c5a-99e5-4698-be04-ef85d0384bf3/r/8u2Da6xBXECsRqzONsIAAAoAAAA?msdynmkt_target=%7B%22TargetUrl%22%3A%22https%253A%252F%252Fwww
.naco.org%252Fnews%252Fus-department-agriculture-announces-new-environmental-review-regulations%22%2C%22RedirectOptions%22%3A%7B%221%22%3Anull%7D%7D&msdynmkt_digest=LUST8m0b%2F6%2BCRHMM0KiQrVyfShSYw0
oHq7hVI16qP74%3D&msdynmkt_secretVersion=a3955a744d9049f88dd8bdc1907bf2bf>
Disaster: FEMA Review Council releases final report recommending sweeping changes
On May 7, the President's Council to Assess FEMA released its final report outlining ten recommendations to overhaul the nation's disaster system — including replacing the Public Assistance
and Individual Assistance programs, raising federal declaration thresholds and transitioning FEMA to a "payer of last resort." If implemented, these changes would shift significant
responsibility to states and counties. Critically, the most consequential reforms require acts of Congress — immediate changes to existing programs are not expected. NACo engaged throughout
the review process and will continue advocating to ensure any transition accounts for the realities facing local governments, particularly smaller and rural counties. Read NACo's policy
update. <https://public-usa.mkt.dynamics.com/api/orgs/227b4c5a-99e5-4698-be04-ef85d0384bf3/r/8u2Da6xBXECsRqzONsIAAA0AAAA?msdynmkt_target=%7B%22TargetUrl%22%3A%22https%253A%252F%252Fwww.naco.org%252F
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Health: ONDCP releases National Drug Control Strategy
The White House Office of National Drug Control Policy (ONDCP) released its 2026 National Drug Control Strategy, the federal government’s blueprint for coordinating a whole-of-government
response to the nation’s drug crisis. The strategy reflects several priorities advanced by NACo, including investments in recovery ecosystems, peer support and community-based approaches.
NACo is reviewing county implications and will continue monitoring implementation across relevant federal programs and engagement opportunities for counties. Read NACo’s policy update
<https://public-usa.mkt.dynamics.com/api/orgs/227b4c5a-99e5-4698-be04-ef85d0384bf3/r/8u2Da6xBXECsRqzONsIAABIAAAA?msdynmkt_target=%7B%22TargetUrl%22%3A%22https%253A%252F%252Fwww.naco.org%252Fnews%252
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5a744d9049f88dd8bdc1907bf2bf> . <https://public-usa.mkt.dynamics.com/api/orgs/227b4c5a-99e5-4698-be04-ef85d0384bf3/r/8u2Da6xBXECsRqzONsIAABMAAAA?msdynmkt_target=%7B%22TargetUrl%22%3A%22https%253A%25
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Join the Webinar Series
The NACo Policy Insider bi-weekly webinar series provides an overview of the full federal policy landscape impacting counties, as well as deeper dives into specific policy areas, equipping
county leaders with insights, context and strategies to engage effectively on key issues from transportation and infrastructure, to public lands, to disasters, to health and human services
and more.
Find upcoming sessions below, and click here <https://public-usa.mkt.dynamics.com/api/orgs/227b4c5a-99e5-4698-be04-ef85d0384bf3/r/8u2Da6xBXECsRqzONsIAABUAAAA?msdynmkt_target=%7B%22TargetUrl%22%3A%22h
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sion=a3955a744d9049f88dd8bdc1907bf2bf> for the full schedule.
May 21
3:30 p.m. – 4 p.m. ET
Register <https://public-usa.mkt.dynamics.com/api/orgs/227b4c5a-99e5-4698-be04-ef85d0384bf3/r/8u2Da6xBXECsRqzONsIAABYAAAA?msdynmkt_target=%7B%22TargetUrl%22%3A%22https%253A%252F%252Fwww.naco.org%252F
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June 4
3:30 p.m. – 4 p.m. ET
Register <https://public-usa.mkt.dynamics.com/api/orgs/227b4c5a-99e5-4698-be04-ef85d0384bf3/r/8u2Da6xBXECsRqzONsIAABcAAAA?msdynmkt_target=%7B%22TargetUrl%22%3A%22https%253A%252F%252Fwww.naco.org%252F
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0MLTkw%3D&msdynmkt_secretVersion=a3955a744d9049f88dd8bdc1907bf2bf>
June 18
3:30 p.m. – 4 p.m. ET
Register <https://public-usa.mkt.dynamics.com/api/orgs/227b4c5a-99e5-4698-be04-ef85d0384bf3/r/8u2Da6xBXECsRqzONsIAABgAAAA?msdynmkt_target=%7B%22TargetUrl%22%3A%22https%253A%252F%252Fwww.naco.org%252F
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7TUd6yxtQ%3D&msdynmkt_secretVersion=a3955a744d9049f88dd8bdc1907bf2bf>
NACo in Action
NACo sends letter urging full funding for the Economic Development Administration
NACo sent a letter to House and Senate Appropriations leadership urging at least $645 million — the authorized level — for EDA's core programs in FY 2027, including robust funding for
innovation programs authorized under the Stevenson-Wylder Act. Read NACo’s policy update <https://public-usa.mkt.dynamics.com/api/orgs/227b4c5a-99e5-4698-be04-ef85d0384bf3/r/8u2Da6xBXECsRqzONsIAABsA
AAA?msdynmkt_target=%7B%22TargetUrl%22%3A%22https%253A%252F%252Fwww.naco.org%252Fnews%252Fnaco-voices-support-eda-amidst-proposed-program-cuts%22%2C%22RedirectOptions%22%3A%7B%221%22%3Anull%7D%7D&msd
ynmkt_digest=SvjcGuuuu0%2BtIB2u4gaZHep4m0URQJPD0pEp0Jddt%2Bo%3D&msdynmkt_secretVersion=a3955a744d9049f88dd8bdc1907bf2bf> . <https://public-usa.mkt.dynamics.com/api/orgs/227b4c5a-99e5-4698-be04-ef85d0
384bf3/r/8u2Da6xBXECsRqzONsIAABwAAAA?msdynmkt_target=%7B%22TargetUrl%22%3A%22https%253A%252F%252Fwww.naco.org%252Fnews%252Fnaco-joins-letters-calling-congress-support-water-infrastructure-funding-and
-reauthorization%22%2C%22RedirectOptions%22%3A%7B%221%22%3Anull%7D%7D&msdynmkt_digest=kdU0wV03%2FYRMJAc%2FWW0yymEOdTWjVWHJykvt%2BV21yho%3D&msdynmkt_secretVersion=a3955a744d9049f88dd8bdc1907bf2bf>
NACo hosts cybersecurity roundtable with congressional staff and CISA
NACo convened a roundtable with congressional staff and representatives from the Cybersecurity and Infrastructure Security Agency (CISA) to discuss the county role in cybersecurity and
advance key priorities — including reauthorization of the State and Local Cybersecurity Grant Program <https://public-usa.mkt.dynamics.com/api/orgs/227b4c5a-99e5-4698-be04-ef85d0384bf3/r/8u2Da6xBXEC
sRqzONsIAAB8AAAA?msdynmkt_target=%7B%22TargetUrl%22%3A%22https%253A%252F%252Fwww.naco.org%252Fresource%252Freauthorize-state-and-local-cybersecurity-grant-program%22%2C%22RedirectOptions%22%3A%7B%221
%22%3Anull%7D%7D&msdynmkt_digest=oDj6cMn6c2GTe4eV7ymD%2FMUYUE%2BU1FOYARYvm21erMk%3D&msdynmkt_secretVersion=a3955a744d9049f88dd8bdc1907bf2bf> . NACo will continue to advocate for federal
funding mechanisms to address the increasingly complex cybersecurity threat environment at the local government level. <https://public-usa.mkt.dynamics.com/api/orgs/227b4c5a-99e5-4698-be04-ef85d038
4bf3/r/8u2Da6xBXECsRqzONsIAACAAAAA?msdynmkt_target=%7B%22TargetUrl%22%3A%22https%253A%252F%252Fwww.naco.org%252Fnews%252Fsamhsa-implements-new-harm-reduction-restrictions-updated-guidance%22%2C%22Red
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County Impact & Action Needed
Take action now on key county priorities
Surface transportation reauthorization – urge your representative to support the package:
The House Transportation and Infrastructure Committee unveiled the BUILD America 250 Act this week, with markup scheduled for May 21. The bill delivers significant wins for counties
— Bridge Formula Program funding increases from $5.5 billion to $9 billion per year, the local off-system bridge set-aside grows from 15 to 25 percent and committee staff estimate 22
percent of total bill funding will flow to local governments.
County Action: Contact your U.S. Representative now and urge them to support the surface transportation reauthorization package ahead of markup.
Housing – county-backed improvements secured in revised housing package
The House Transportation and Infrastructure Committee unveiled the BUILD America 250 Act this week, with markup scheduled for May 21. The bill delivers significant wins for counties
— Bridge Formula Program funding increases from $5.5 billion to $9 billion per year, the local off-system bridge set-aside grows from 15 to 25 percent and committee staff estimate 22
percent of total bill funding will flow to local governments.
County Action: Watch NACo's webinar that outlines key provisions included in the House package. Watch the recording here <https://public-usa.mkt.dynamics.com/api/orgs/227b4c5a-99e5-4698-be04-ef85d038
4bf3/r/8u2Da6xBXECsRqzONsIAACEAAAA?msdynmkt_target=%7B%22TargetUrl%22%3A%22https%253A%252F%252Fwww.naco.org%252Fevent%252Fmajor-housing-bill-update-what-counties-need-know-about-updated-21st-century-
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.
What's Next
* Transportation reauthorization: NACo will monitor House floor consideration of the BUILD American 250 Act and continuing engaging to ensure the inclusion of key county priorities.
* Housing: NACo will monitor House floor consideration of the 21st Century ROAD to Housing Act and continue engaging to protect county flexibility in the final package.
* FEMA reform: NACo will track legislative and administrative developments stemming from the FEMA Review Council report and engage to ensure county priorities are reflected in any reform
framework.
* FY 2027 appropriations: NACo will continue pressing for robust funding for FEMA, CDBG, PILT, EDA, water infrastructure, election administration and cybersecurity programs as markup
advances.
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