Capitol to Capitol | April 7, 2026

Capitol to Capitol | April 7, 2026

Questions? Please use the email icon at left to contact NCSL's State-Federal Affairs Division.

Congressional Updates

Lawmakers Urge CFTC Action on Prediction Market Insider Trading

U.S. Sen. Elizabeth Warren (D-Mass.) and more than 40 lawmakers called on federal agencies to remind employees of their obligation to refrain from insider trading in prediction markets. In a letter to the Commodity Futures Trading Commission and the Office of Government Ethics, the lawmakers point to several incidents since January- a Polymarket user earning $400,000 betting on the capture of Nicolás Maduro, suspicious trades preceding the invasion of Iran and the death of Ayatollah Ali Khamenei, and trades on whether Kristi Noem would be fired as head of DHS-as evidence of a pattern warranting regulatory attention. The lawmakers note that under the Commodity Exchange Act, as amended by the Stop Trading on Congressional Knowledge Act, federal employees are prohibited from trading on nonpublic government information, including in prediction markets. The letter requests a staff-level briefing and answers to specific questions by April 13, including whether the CFTC has investigated any instances of federal employee insider trading and what steps the agency is taking to detect and prevent it. Read Warren's press release.

Administration Updates

Administration for Children and Families Approves Additional Child Welfare Prevention Services

The agency announced that four evidence-based programs to prevent children from being placed in foster care have been approved for use as part of state Title IV-E prevention services plans. Evidence-based services included in the federal Title IV-E Prevention Services Clearinghouse, if included in state plans, can receive a 50% federal reimbursement through fiscal year 2026 and reimbursement at the state FMAP rate starting in fiscal 2027. Read the press release.

Housing Department Renews Expired Homelessness Program Grants

The department renewed 622 projects totaling $350 million to rehouse individuals and families experiencing homelessness. The Continuum of Care Program grants had expired during the first three months of 2026 but were required by congressional directive to be renewed for an additional 12 months. The program has not made any new awards in recent months due to ongoing litigation over the department's proposal to limit grant spending on projects that provide permanent housing for people experiencing homelessness. Read the announcement.

Safe Streets for All Program Makes $999M Available

The department has announced the availability of competitive funding under the Safe Streets for All grant program to help upgrade American streets and safety infrastructure. The funding will be split between planning and demonstration grants and implementation grants. Eligible projects include creation of a Comprehensive Safety Action Plan, improvements to emergency response times, updates to rail crossings and increases in trailer truck parking. Applications close on May 26.

DOE Releases Funding to Accelerate Upgrades to the Nation's Power Grid

The Department of Energy has announced the availability of $1.9 billion to fund urgent electric grid improvements to help stabilize and optimize operation. The funding, which will be issued though the SPARK program (Speed to Power through Accelerated Reconductoring and other Key Advanced Transmission Technology Upgrades), was authorized under the Bipartisan Infrastructure Law of 2021. Eligible projects will include upgrades to higher-capacity power lines, pairing of advanced transmission technologies and other measurable improvements to grid capacity. Applications close on May 20.

Temporary Nationwide E15 Waiver

The Environmental Protection Agency has announced a temporary waiver on E15 fuel sales from May 1-20, which is the maximum allowable under the clean air act. The waiver, which could be extended, allows for the temporary sale of fuel that comprising 15% ethanol. E15 sales require a waiver in the summer and are typically restricted due to ozone pollution limits. The EPA cited ongoing geopolitical events as a reason for the waiver to help support the U.S. fuel supply. The agency also removed all federal restrictions on the sale of E10 fuel nationally.

Trump Replaces Head of Justice Department

President Trump announced in an April 2 post on Truth Social that Pam Bondi will no longer be the attorney general and leader of the Department of Justice. Deputy Attorney General Todd Blanche will serve as the acting attorney general until a new appointee is confirmed. Read the AP's news article.

Supreme Court Updates

Justices Hear Landmark Case on Birthright Citizenship

The Supreme Court heard arguments in Trump v. Barbara, a case challenging the executive order President Trump issued on the first day of his return to office to deny birthright citizenship to children born in the U.S. to parents who are not citizens or lawful permanent residents. Under the order, "no department or agency of the United States government shall issue documents recognizing United States citizenship" to individuals whose parents do not satisfy citizenship or residency requirements. The challenger, an anonymous mother represented by the ACLU, argues the 14th Amendment's citizenship clause gives citizenship to all persons born on U.S. soil, while the Trump administration claims the clause applies only to children whose parents are "domiciled" in the United States, meaning lawfully present with the intent to stay in the country permanently. The court will issue its decision in June. Listen to the oral argument and read the SCOTUSblog case analysis.

Supreme Court Rules in Favor of Therapist on Conversion Therapy Case

The justices struck down a Colorado law banning the use of conversion therapy, the controversial mental health treatment intended to change a patient's sexual orientation or gender identity, on children. In Chiles v. Salazar, Kaley Chiles, a licensed counselor and Christian in Colorado, challenged the law on First Amendment grounds, arguing that the ban censors speech based on the viewpoint of the speaker by preventing counselors from suggesting or engaging in conversion therapy conversations with clients. In its 8-1 opinion, the court agreed with Chiles, striking down the Colorado law and reversing the 10th Circuit ruling in favor of the state. The majority stated in its opinion, "Colorado may regard its policy as essential to public health and safety.... But the First Amendment stands as a shield against any effort to enforce orthodoxy in thought or speech in this country." Justice Ketanji Brown Jackson was the lone dissenter, characterizing the Colorado law as an imposition of a standard of care on medical professionals and asserting that there is no dispute that states can regulate medical professionals. Read the opinion and the SCOTUSblog case analysis.

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