Capitol to Capitol | Jan. 6, 2025

Capitol to Capitol | Jan. 6, 2025

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

Administration Updates

Administration for Children and Families Adds Justification Requirement for State Spending

Officials announced that all federal ACF funding provided to states will require "justification and a receipt of photo evidence." The ACF has not provided more detail on what processes states will need to follow to draw down funding. Some states have been unable to access any federal ACF funding since the announcement. The ACF includes programs such as the Child Care and Development Fund, Head Start, Community Services Block Grant, Social Services Block Grant and Title IV-B and IV-E funding for child welfare services. View the announcement on X.

Centers for Medicare & Medicaid Services Announces Rural Health Transformation Program Awards

The Rural Health Transformation Program, or RHTP, will provide a total of $50 billion to support rural health initiatives in all 50 states. For 2026, the first year of the five-year funding cycle, states will receive awards ranging from $147 million to $281 million.

The RHTP, which is part of the 2025 federal budget reconciliation bill, will distribute $10 billion annually from 2026 through 2030. The distribution is based on two formulas: 50% of the total annual funding will be divided equally among all approved states; the remaining 50% will be allocated at the discretion of CMS. Factors influencing the discretionary distribution include the size of a state's rural population, the proportion of rural health facilities in each state, state policy actions that enhance rural health care and other criteria as outlined in the notice of funding opportunity.

According to the press release, each state has been assigned a dedicated RHTP project officer to provide technical assistance throughout the program. States are required to submit regular updates to CMS regarding their progress and initiatives. Additionally, CMS will convene an annual meeting to share information and best practices.

Separately, CMS announced the formation of the Office of Rural Health Transformation to assist states as they implement RHTP-funded projects and initiatives.

Additional information is available at the links below:

• State-by-State Award Amounts
• Office of Rural Health Transformation
• RHTP NOFO
• RHTP Webpage
• RHTP FAQ

DHS Unveils $1B Investment in Airport Security Technology

The investment, which will modernize aviation security technology at U.S. airports, includes updates to screening devices across the national airport network and to TSA officer training programs.

Trump Administration Lowers CAFE Standards

The Trump administration has begun the process of easing fuel economy requirements for new vehicles. Under the previous administration, Corporate Average Fuel Economy (CAFE) Standards required that automakers' vehicle fleets get 2% more efficient each year; the requirement has been lowered to 0.5% annually. Additionally, under the previous administration, if automakers did not meet these requirements, they were required to pay hefty fines or buy credits from a company that overperformed in efficiency. These fines have been removed.

EPA Launches Clean Air Act-Related Resource

The Office of Air and Radiation has launched the Clean Air Act Resource for Data Centers webpage to provide data center developers, local communities and tribes with centralized information and resources related to the federal law regulating air pollution. The webpage covers several broad topics, including:

• Providing clean air, energy and water to all Americans.
• Restoring American energy dominance.
• Reforming cross-agency partnerships.
• Improving AI systems.
• Restoring American auto jobs.

DOE Announces Organizational Realignment to Advance Energy Dominance Goals

The organizational realignment aims to strengthen the department's ability to implement the Trump administration's energy-related executive order and advance the administration priority of restoring American energy dominance.

Links