Public Policy Update (as of 2/21/25)

Federal 

Reconciliation

Congressional Republicans are planning on using the reconciliation process to achieve some of their budget goals.  Reconciliation is a procedure that makes it easier to pass legislation related to taxes and spending. 

On February 11, 2025, the House Budget Committee released and passed a budget resolution which included significant tax cuts and cut spending by $1.5 trillion over the next 10 years. The bill requires the House Energy and Commerce Committee, which includes Medicaid and other health care programs, to cut $880 billion. This will be voted on by the full House the week of February 25, 2025. If passed by the House of Representatives, the House Energy and Commerce Committee will begin making cuts to meet the required reductions.  

On the Senate side, the Senate Budget Committee released and passed a budget resolution this month which includes increases in defense spending and border security funding. The Senate plans to put tax cuts in a second bill. The budget resolution instructs the Health, Education, Labor and Pensions Committee to cut at least $1 billion.

Budget

In December 2024, Congress passed a Continuing Resolution (CR) that funds the government through March 14, 2025. As we approach this deadline, Congress is working to finalize appropriations bills to fund the remainder of fiscal year 2025. Congress must finalize the appropriations bills or pass another continuing resolution to continue to fund the federal government through September 30, 2025.

Our major concern about reconciliation and the budget process is the potential of cuts to Medicaid. Reductions in the federal match, block grant funding, and per capita caps are means that can be used to reduce federal dollars that fund Medicaid services and supports. This would force states to consider things like changes to eligibility, reduction of benefits, and work requirements. Congress needs to hear now about the importance of Medicaid in the lives of people with I/DD.
Looking forward to next year, the U.S. House Committee on Appropriations Labor-Health-Human Services-Education-Related Agencies (LHHS) subcommittee announced an opportunity for the public to submit testimony to be considered for funding programs in Fiscal Year 2026. The public hearing will be on April 9, 2025 at 10:30 AM in room 2358-C of the Rayburn House Office Building. The deadline to submit requests to testify is March 21, 2025.

Protect Section 504 of Rehabilitation Act

Section 504 is the federal civil rights law that protects children and adults from discrimination in places like hospitals, schools, housing, and many other federal programs and services. Seventeen states have brought a lawsuit attempting to declare that Section 504 is unconstitutional. If found unconstitutional, it would impact the educational rights of students with disabilities.

The states bringing the case are Alaska, Alabama, Arkansas, Florida, Georgia, Indiana, Iowa, Kansas, Louisiana, Missouri, Montana, Nebraska, South Carolina, South Dakota, Texas, Utah, and West Virginia.

State

Legislative - Bills of Interest

HB 113 – Create Committee on Medicaid Sustainability – This bill establishes a joint legislative committee to explore modifications to the NC Medicaid program to maintain state funding levels in preparation of potential decreases in federal Medicaid dollars. Modifications may include reducing optional services, reducing eligibility groups, increasing provider assessments, and reducing reimbursement rates. A final report from this committee is due by April 2026.

SB 77 – School Contracted Health Services – This bill would allow parents to choose their child’s nurse for services that are required by the student’s IEP.

HB 4 - Sam’s Law/Seizure Safe Schools Act – this bill requires schools to have a plan for training students and school personnel on recognizing and responding to seizures.

HB 21 - Driver’s License Designation/Autism – This bill requires the DMV to develop a designation of Autism on licenses, upon request. It also includes training on Autism for officers.