Capitol to Capitol | April 28, 2026

Capitol to Capitol | April 28, 2026

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

Congressional Updates

Fiscal Year 2027 Appropriations Process Gets Underway

Congress is working to resolve immigration-related provisions of FY 2026 as congressional leaders move forward on FY 2027 appropriations bills. In a late-night session last week, the Senate passed a budget resolution that sets the stage for a reconciliation bill to fund immigration enforcement agencies through 2029. The budget resolution does not include language to incorporate the Safeguard American Voter Eligibility (SAVE America) Act into the reconciliation package.

Meanwhile, the House Appropriations Committee has officially kicked off the fiscal year 2027 spending process. Chairman Tom Cole (R-Okla.) released a full markup schedule last week, with subcommittee markups already underway, and the goal of advancing all 12 spending bills out of committee by the end of June. The intense two-month timeline puts the House on an ambitious track toward regular order, a welcome sign for states and localities that have been adapting to a patchwork of continuing resolutions that strain state-federal cooperation. However, as in recent years, razor-thin majorities present challenges for passage, which is further complicated with the approach of the November mid-term elections. Read the markup schedule.

NCSL will be closely monitoring the reconciliation process as well as the FY 2027 appropriations both for attempts to shift immigration costs to states and for impacts on overall state budgets and legislative priorities.

Administration Updates

USDA Suspends Increasing Land, Capital and Market Access Program

The Department of Agriculture has suspended a program to improve land access for underserved new and beginning farmers. The suspension cancels $300 million in program funding and terminates 49 of the 50 active projects run by nonprofits, tribal governments and other organizations. The department announced the suspension of the Increasing Land, Capital and Market Access program on March 26. Litigation is expected.

FERC Will Act on Large Load Electrical Connections

The Federal Energy Regulatory Commission will act on an Energy Department proposal to explore ways to connect large transmission loads (such as data centers) to the electrical grid by June. The department's proposal, which was initiated in October, is aimed at ensuring the "timely, orderly and equitable integration" of such loads into the nation's transmission system. In comments on the proposed rule in November, NCSL stated that, if approved, the rule would "bring under federal jurisdiction an issue that is currently handled by the states and has been for decades," and that the proposed rule raised several pressing questions around reliability, cost allocations, interconnection points and more.

EPA Reorganization

The Environmental Protection Agency has closed its research arm, the Office of Research and Development. The move was first announced in July as part of a larger agency reorganization.

CMS Presses States on Medicaid Provider Oversight and Revalidation

The Centers for Medicare & Medicaid Services administrator, Dr. Mehmet Oz, has directed all 50 states to move quickly to revalidate Medicaid providers at "high risk of waste, fraud, abuse and corruption." In letters sent to governors and state Medicaid directors, the CMS set a 10-business-day deadline, from April 23, for states to indicate whether they will conduct expedited revalidation reviews, followed by a 30-day deadline to submit a broader, two-year provider revalidation strategy. The CMS indicated that states' responses will factor into future federal oversight and emphasized a focus on providers with limited enrollment safeguards and those lacking a National Provider Identifier, or NPI, the unique 10-digit number given to individual health care providers. Plans must be submitted by each state's Medicaid director.

The compressed timeline for responding may present challenges for states that need to coordinate across Medicaid agencies as well as staffing challenges and IT system upgrades needed for a rapid revalidation process. The CMS expects states to develop a process for assessing provider types that are not routinely issued NPIs-typically providers who are not employed by a HIPAA-covered entity such as some home and community-based services providers. States will need to determine how to conduct appropriate oversight without disrupting access to care.

$144 Million for Microplastics

The Department of Health and Human Services and the Environmental Protection Agency have jointly announced new coordinated actions on microplastics. In the announcement, the HHS unveiled a new program, Systematic Targeting of Microplastics, that will study both the human health impacts of microplastics and the removal of microplastics from human tissue. The EPA included microplastics, along with certain pharmaceuticals, per- and polyfluoroalkyls and other chemicals, in its draft list of drinking water contaminants. Adding microplastics to this list will open further funding and research. No regulations for microplastics in drinking water have yet been announced. NCSL has supported further microplastics research funding for many years and applauds the creation of this new program.

DOJ Moves Medical Cannabis to Less-Dangerous Drug Schedule

The Justice Department and the Drug Enforcement Administration moved certain cannabis products from Schedule I to the less-dangerous Schedule III list under the Controlled Substances Act. The rescheduling will apply to cannabis products that are either FDA-approved or subject to a state-issued license to manufacture, distribute and/or sell for medical purposes only. The order does not apply to cannabis products created and distributed for adult recreational use. While the new regulatory scheme will require state licensees to register with the DEA to sell FDA-approved products, the regulation creates an expedited review process under which applicants holding state medical marijuana licenses may submit their existing state credentials as conclusive evidence of state-law authorization. The DEA will hold a hearing on the proposed rescheduling of cannabis in all forms, including recreational use, beginning June 29. Read the DOJ press release.

Funds Available for Rail Infrastructure and Safety Improvements

The Department of Transportation is soliciting applications for competitive grants to reduce congestion and improve the safety, reliability, workforce development and more of intercity passenger and freight rail. Information on the Consolidated Rail Infrastructure and Safety Improvement program, as well as eligibility requirements and application instructions, is available on the DOT website.

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