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U.S. House committees have marked up their respective bills. Here's what it means for counties.
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May 14, 2025
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BUDGET RECONCILIATION:
AN UPDATE FOR COUNTIES
U.S. House committees mark up
budget reconciliation bills
A new advocacy update from the National Association of Counties (NACo) summarizes the status of the high-stakes budget reconciliation process. As of May 14, most of the U.S. House committees
have completed markups of their respective sections of the budget reconciliation bill, presenting both opportunities and challenges for counties.
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Tune in to new webinar series for more on the bill
This week we're kicking off a new webinar series, Inside Washington. This biweekly call will discuss federal policies and actions that directly impact counties — from funding and regulatory
changes to intergovernmental partnerships.
For the first webinar, NACo's Government Affairs team will provide a briefing on the U.S. House's reconciliation bill. Join us Thursday, May 15, at 3:30 p.m. ET.
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Positive Provisions for Counties
* Preserves the tax-exemption for municipal bonds, protecting counties' ability to finance critical infrastructure.
* Includes $1.6 billion for local and state preparation for the 2026 World Cup and 2028 Olympics.
* Reauthorizes Secure Rural Schools (SRS) through 2027, providing forested counties with essential funding to support schools, roads and emergency services.
* Integrates $13 billion in Inflation Reduction Act funding into the Farm Bill baseline and expands U.S. Department of Agriculture conservation programs.
* Delays implementation of the federal nursing home staffing rule until 2035, easing pressure on county-run facilities.
* Delays cuts to Medicaid Disproportionate Share Hospital (DSH) payments until 2029.
* Provides revenue sharing for wind and solar energy produced on federal lands, mirroring oil and gas revenue-sharing models.
* Increases the volume of tax credits available for low-income housing by 12.5% and lowers the private activity bond financing threshold required to access the credit.
Concerns for Counties
* Proposes a 10-year moratorium blocking counties from enforcing local AI regulations, limiting the ability to manage evolving technologies.
* Introduces new Medicaid work requirements on able-bodied adults beginning in 2029, increasing administrative burdens and reducing access to care.
* Imposes new out-of-pocket costs on low-income Medicaid enrollees, likely increasing uncompensated care in county hospitals and clinics.
* Fails to extend the New Markets Tax Credit (NMTC) that promotes community development and economic growth.
* Increases the state and county administrative cost share for the Supplemental Nutrition Assistance Program (SNAP) from 50% to 75%.
Other County Impacts
Additional impacts are detailed in today's advocacy update <https://public-usa.mkt.dynamics.com/api/orgs/227b4c5a-99e5-4698-be04-ef85d0384bf3/r/Uy60eTqNAUSStEpdTqIDAAcAAAA?target=%7B%22TargetUrl%22%3
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0MrNoI%2BbMF9cNVBXSd9VmWxbm2LSN7u9g%3D&secretVersion=a587597bbd2d4ba3bb4334f6d8be15ee> and include an increase to the state and local tax (SALT) deduction cap, the rescinding of $262
million in Inflation Reduction Act funds and upgrades to air traffic control systems.
In the coming days, NACo will be releasing a more comprehensive analysis. Check back soon for more.
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