With the federal fiscal year set to end September 30, all eyes are on Congress as negotiations over appropriations and funding levels continue. At stake is whether lawmakers can agree on a new funding package, extend current FY 2025 funding through a continuing resolution, or risk a government shutdown. Counties could feel significant impacts if a shutdown occurs, including delays in federal grant processing, FEMA reimbursements, and technical assistance. Essential services like emergency response and Medicaid benefits would continue, but uncertainty around funding remains a top concern for local governments.
Meanwhile, counties are closely monitoring the FEMA Act, which passed the U.S. House Transportation and Infrastructure Committee with strong bipartisan support. The bill would elevate FEMA to a cabinet-level agency, streamline public assistance by moving from a reimbursement model to a grant-based system, and improve individual assistance programs. A notable provision would establish a public-facing dashboard to track the status of reimbursement claims—an idea advanced by NACo and strongly supported by counties.
Looking ahead, Congress and the U.S. Department of Transportation have begun work on the next surface transportation reauthorization, with the current Infrastructure Investment and Jobs Act set to expire in 2026. Counties, which own 44% of roads, 38% of bridges, and 40% of public transit systems, only receive about 14% of federal transportation funding. NACo and county leaders are pushing for greater direct investment to local governments, streamlined project delivery, and opposition to heavier truck weight allowances that would accelerate wear and tear on local infrastructure.
Finally, counties are also watching recent executive orders, including one altering the review of discretionary grants, raising concerns about shifting criteria for awards, and another decentralizing NEPA implementation, which could reduce opportunities for county consultation on energy and infrastructure projects. Counties are encouraged to stay engaged and share local experiences as these federal actions unfold.