Public Policy Update - October 23, 2025

Read a summary of recent public policy updates that may be of interest to North Carolinians with intellectual and other developmental disabilities (I/DD). These updates are current as of October 23, 2025.

Federal

Budget

The federal shutdown continues to become one of the longest in US history. After no agreement on a federal budget for the fiscal year beginning in October, Congress also failed to come to an agreement on a Continuing Resolution to keep the government operating. Essential services continue, but many federal workers are off the job.

Medicaid funding for Home and Community Based Services, Social Security and Supplemental Security Income (SSI) benefits, and the Individuals with Disabilities Education Act (IDEA) funding should continue to be sent to states. But many other federal functions will be put on hold. With limited staff, the Office for Civil Rights will halt investigations and Centers for Medicare and Medicaid Services is unlikely to be able to approve state plan amendments or waivers.

With the ongoing risk of federal workers being fired, there is a lack of staff to administer annual funding for programs for people with I/DD, like Councils on Developmental Disabilities, creating concern and uncertainty. In the case of federally-mandated protection and advocacy agencies (P&As) like DRNC, funds are routinely carried over from one fiscal year to the next to account for a possible delay in funding, but at some point, carryover funds will run out, and without new funding, P&As would have to stop taking clients and providing needed advocacy.

Education Department

Early in the shutdown, the Education Department let approximately 466 employees go, following through on President Donald Trump’s pledge to lay off federal workers. The Office of Special Education Programs (OSEP), which administers the IDEA, was one of the hardest hit. Their office went from 90 staff to just a handful, making it impossible to fulfill its responsibilities under IDEA. The Rehabilitation Services Administration, which is responsible for vocational rehabilitation, was also hard hit and there were more cutbacks at the Office for Civil Rights.

A federal judge has temporarily blocked these reductions after unions represented workers sued, but there will likely be an appeal of this ruling. Advocates for people with disabilities continue to be concerned about the threats and risks to programs that support and protect needed services.

Rights of Airline Passengers with Disabilities

In the past, we celebrated the new rule that was set to take effect in January 2026, requiring training for airline staff who handle wheelchairs and how to help people with disabilities. The rule also describes steps airlines must take if wheelchairs are damaged or lost. However, the U.S. Department of Transportation now says it will not enforce four key parts of what’s known as the “Wheelchair Rule”. The four parts they are reviewing include the airline’s responsibility for damaged wheelchairs, how often staff must be trained, notification of rights to file complaints, and reimbursements for higher fares when more expensive flights are required to fit the mobility device. The agency said that it expects to propose a new version of the rule in August 2026 and plans to determine whether to issue a final rule no sooner than December 31, 2026.

Definition of Intellectual Disability

The U.S. Supreme Court prepares to take on a case that involves whether a diagnosis of intellectual disability should be based on more than an IQ score. While the case is related to the death penalty, the implications of a decision could have a broader impact. There is an established clinical framework for determining intellectual disability that includes both limitations in intellectual functioning (IQ) and level of adaptive functioning. How intellectual disability is defined can impact access to educational services, home and community-based services, and other community supports. The Arc, the American Association on Intellectual and Developmental Disabilities, the Bazelon Center for Mental Health Law and the National Disability Rights Network filed a brief asking the Supreme Court to rely on the established clinical framework. The American Psychological Association and the American Psychiatric Association filed similar briefs.

State

Medicaid Update

The House and Senate were in Raleigh for a scheduled October mini-session. More than 200 people with disabilities, advocates, and representatives of provider agencies showed up at the legislature on October 21, 2025 to speak about the impact of the recent Medicaid reimbursement cuts. The rate reductions range from 3% to 8%, with some services receiving a 10% reduction. NC Council on Developmental Disabilities Chair Jon D’Angelo spoke about the impact on people with disabilities and the DSPs who support them. He was one of several people who spoke about the services that people will lose if these cuts remain in place.

Near the end of the day, after hearing from so many constituents, the House, led by Representative Donny Lambeth, proposed a bill that would allocate money from the Medicaid Contingency Fund to the Department of Health and Human Services to address the Medicaid deficit. The bill passed out of committee and was approved by the House the following day. However, the Senate had left Raleigh and did not receive the bill. This bill will remain in limbo until the House and Senate reconvene. The next scheduled session for the legislature is at the end of November. Continued education and advocacy is needed.