Read a summary of recent federal and state policy updates that may affect or interest North Carolinians with intellectual and other developmental disabilities (I/DD). This update, published October 22, 2026, highlights key developments related to the I/DD community.
FEDERAL
Budget
October 1st marked the beginning of the federal fiscal year, which is when a new budget would start. However, the federal government continues to operate under a Continuing Resolution (CR), which was passed on September 1st. This CR extends the previous fiscal year funding levels through December 11th to prevent a government shutdown.
The House and Senate are expected to return on November 9th. Between November 9th and December 11th, lawmakers will need to either pass all 12 remaining FY27 spending bills for federal programs, enact another CR to temporarily extend funding for federal programs again, or risk a government shutdown.
Reversal of the “Integration Mandate”
We have been tracking federal efforts to limit enforcement of Olmstead and Section 504 protections. In early October, a federal judge agreed to remove references to “integration” from 2024 Section 504 regulations, which prohibit disability discrimination. The ruling followed the Department of Justice’s (DOJ) decision not to defend the regulations in a lawsuit challenging their legality.
The DOJ also announced it would no longer enforce its previous guidance on Olmstead v. L.C., the landmark Supreme Court decision requiring public entities to provide services in the most integrated setting appropriate. While the ruling does not declare Section 504 or other disability rights laws unconstitutional, it invalidates the 2024 regulations defining the “most integrated setting” mandate. It does not overturn the Supreme Court’s Olmstead decision, but the DOJ’s actions signal a shift away from enforcing its protections.
National Health Survey
The U.S. Centers for Disease Control and Prevention (CDC) is proposing major changes to the 2028 National Health Interview Survey, an annual questionnaire that collects information about adults’ health, chronic conditions, injuries, and access to care. The current survey includes 49 questions about disability and functioning. Under the proposal, that number would drop to 15, making it harder to identify people with disabilities, especially those with intellectual and developmental disabilities (I/DD).
The CDC also proposes shifting from primarily face-to-face interviews to paper and online surveys. This change raises accessibility concerns for people who need internet or technology support, large print, plain language, or other communication accommodations.
Survey data informs federal funding decisions for State Councils on Developmental Disabilities and other programs.
Public comments closed Oct. 20, 2026, after self-advocates and advocacy organizations submitted feedback. Federal researchers will review the comments and consider whether to restore dropped questions, including those related to intellectual disability and mobility. The final survey must be reviewed by the White House Office of Management and Budget and is scheduled for use beginning in 2028.
FEMA
The Federal Emergency Management Agency (FEMA) plans to restore training on meeting the needs of people with disabilities during disasters after suspending it in 2025 in response to executive orders. No training has been offered for more than a year. A U.S. Government Accountability Office report urged FEMA to reinstate the training. FEMA says it will redesign and strengthen the training and standardize the roles of regional disability specialists.
STATE
Legislature
The legislature returned on Wednesday, October 7, 2026 for an extra session and passed the gas tax relief bill suspending gas tax through November 30th. This provides seven weeks of savings of about 40 cents per gallon.
The legislature is scheduled to return on October 26th with a limited scope of activities, including potential veto overrides.
NC Medicaid Assessment
The North Carolina Department of Health and Human Services (NCDHHS) is assessing the state’s Medicaid program to identify strengths and opportunities to improve outcomes, efficiency, value and long-term sustainability. The assessment includes input from Medicaid enrollees, health plans, providers and other stakeholders. The report is expected in late October, followed by a public comment period. Updates and documents will be posted on the NC Medicaid Assessment webpage.