Capitol to Capitol | March 3, 2026

Capitol to Capitol | March 3, 2026

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

NCSL Updates

NCSL Repeats Call for Delay in SNAP Cost Shifts to States

The proposed temporary delay, part of the farm bill negotiations, would promote fair, accurate accountability for states. Read NCSL's full letter reiterating its SNAP concerns.

Administration Updates

FCC Moves to Tighten Eligibility for Lifeline Program

A proposed change to the program that helps low-income households pay for phone and broadband service would limit participation to U.S. citizens and individuals with qualified immigration status and impose stronger identity and eligibility checks. The proposal would require ongoing cross-checks between Lifeline Program enrollment data and Social Security death records .

Since 1985, the Lifeline program has operated under the Universal Service Fund. It is financed through mandatory contributions from telecommunications providers.

The FCC's Office of Inspector General recently found significant improper payments, including millions of dollars issued to deceased subscribers and through duplicate enrollments, largely in states that opted out of the federal verification system.

Some stakeholders have raised concerns that tighter eligibility standards and additional verification requirements could result in fewer households qualifying for the program and risk cutting off access to essential communications services for vulnerable populations.

Department Transfers More Programs to Other Agencies

Two new interagency agreements will transfer administrative authority over certain programs at the Department of Education to other agencies. School safety and family engagement programs will move to the Department of Health and Human Services. These include School Emergency Response to Violence, School Safety National Activities, Ready to Learn Programming, Full-Service Community Schools, Promise Neighborhoods and Statewide Family Engagement Centers. Reporting of foreign gifts and contracts at institutions of higher education will move to the State Department. Education Department leadership signed seven interagency agreements in 2025 to move many of its functions to other agencies. Read the press release here.

Congressional Budget Office Forecasts Pell Grant Funding Shortfall

A new report projects a $5.5 billion shortfall in fiscal year 2026 and a cumulative deficit of up to $132 billion through 2036. Program costs have increased since Congress expanded award eligibility in 2020 through the FAFSA Simplification Act. However, congressional funding for the Pell Grant has been flat over the last four years, maintaining a maximum award of $7,395. The program is a quasi-entitlement and is supported by both annual discretionary appropriations and mandatory funding. During previous shortfalls, award eligibility was reduced.

Congress allocated $10.5 billion to address the Pell shortfall and expanded Workforce Pell eligibility in the One Big Beautiful Bill Act in 2025. Read the estimates.

HUD Proposal Would Reduce Eviction Notice Timelines

The Department of Housing and Urban Development issued an interim final rule that revoked a 30-day eviction notice requirement for federal public housing and federally subsidized units that was established in 2021 under the Biden administration.

The proposed rule would restore eviction notice timelines to the previous standard, which ranged from five days' to 14 days' notice. The department is accepting comments through April 27. Read the interim final rule.

Proposed Rule Would Limit Housing Assistance to Families With Mixed Immigration Statuses

The rule would limit assistance to a temporary, 30-day period for families with members whose citizenship or immigration status makes them ineligible for federal housing assistance. This period of assistance is intended as a temporary condition while HUD verifies a family's U.S. citizenship or immigration status.

Currently, housing assistance is offered on an ongoing basis at a decreased rate calculated by the percentage of ineligible family members. HUD estimates that 24,000 individuals receive assistance through the current policy. Comments on the rule are due by April 21. Read the proposed rule.

$81M RESTART Grants for Reentry Workforce Programs Announced

The department expects to award up to 20 grants totaling $81 million to support workforce training and employment placement for individuals with criminal justice involvement. At least $30 million will go to national or regional intermediary organizations serving youth and young adults, with the remaining funds directed to states, territories and Native American tribal governments.

The grant emphasizes training aligned with high-demand industries, registered apprenticeships and integration with public workforce systems. Read the funding opportunity announcement.

Labor Department Proposes Use of Previous Standard on Independent Contractors

The proposed rule would increase the number of workers classified as independent contractors by rescinding a 2024 Biden-era rule created under the Fair Labor Standards Act for independent contractors, including gig workers. The department would revert to a standard established by the first Trump administration in 2021. The standard would also apply to the Family and Medical Leave Act and Migrant and Seasonal Agricultural Worker Protection Act. The department estimates the rule would result in 1% to 3% more workers being classified as independent contractors. Read the proposed rule.

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