Federal Advocacy Update September 1, 2025
House and Senate Action
*Both chambers return to action this week.
Executive Summary – Key Federal Issues for Special Districts
- Farm Bill Reauthorization (Deadline: Sept. 30)
- Essential for rural water and agricultural districts.
- Uncertainty around extension or reauthorization could disrupt core programs.
- National Flood Insurance Program (NFIP) (Deadline: Sept. 30)
- Critical for flood control, water management, and infrastructure districts.
- Expiration could create instability for homeowners, communities, and real estate markets.
- FEMA Reform – Fixing Emergency Management for Americans (FEMA) Act
- House Transportation & Infrastructure Committee markup this week.
- Would streamline disaster response, reduce bureaucratic delays, and expand state/local engagement.
- Directly impacts emergency response and fire protection districts.
- USFS Firefighting Capacity – “Red Cards” Expansion
- Bipartisan push (Schiff/Curtis letter) to USDA to increase firefighter credentialing.
- Would strengthen wildfire response capacity and improve coordination with state/local partners.
- Benefits fire protection and emergency services districts in high-risk regions.
- Health Care Extenders & ACA Subsidies
- Pending action on telehealth flexibilities, community health center funding, and ACA subsidies.
- Key issue for hospital and health care districts providing rural and underserved care.
- Rural Public Lands Counties – MORE USDA & DOT Grants Acts (S. 2618 / S. 2619)
- Establishes definition of High Density Public Lands Counties (HDPLCs).
- Benefits local governments (including special districts) in counties with >50% federal land.
- Provides reduced grant match requirements, expanded technical assistance, and priority consideration.
- Potentially transformative for rural special districts in public lands counties (water, fire, health, recreation).
House
The House will consider a handful of foreign affairs-related bills listed on the suspension calendar (requires 2/3 majority for passage). Later in the week, the chamber will begin debate on the fiscal year 2026 Energy and Water spending bill. The full House agenda can be accessed here.
Senate
Across Capitol Hill, the Senate will take a procedural vote to advance its version of the National Defense Authorization Act (NDAA). Republicans will need Democrats’ support to clear the initial hurdle, making this vote an early sign of any bipartisan support.
Outlook for Fall Congressional Session
After a month-long recess, House and Senate lawmakers are back in Washington this week with a crowded agenda. At the top of the list is preventing a government shutdown, as current funding for fiscal year 2025 expires on October 1.
Funding negotiations are expected to be challenging. Democrats remain wary after Republicans pushed through a $9 billion rescissions package in July, clawing back previously approved spending. The White House is now pursuing an additional $4.9 billion cut to funds for the State Department and the U.S. Agency for International Development (USAID) through a so-called “pocket rescission” – a controversial maneuver that bypasses congressional approval.
Several other major deadlines loom in the coming months:
- Farm Bill: While some agricultural provisions were addressed in this summer’s budget reconciliation package, many core programs still require congressional action. Lawmakers must either extend or reauthorize the Farm Bill by September 30 to avoid disruptions.
- Defense Authorization: Congress will also take up the annual NDAA, which sets military policy and authorizes funding levels for the Pentagon. The Senate will take a procedural vote today, while the House is set to consider its version of the bill next week.
- National Flood Insurance Program (NFIP): After years of short-term extensions, the NFIP is once again set to expire on September 30. Without congressional action, the program could lapse, creating uncertainty for homeowners, communities, and real estate markets nationwide.
- Defense Production Act (DPA): Also expiring September 30, the DPA gives the president authority to boost domestic production for national security needs.
- Health Care Extenders: Congress faces pressure to extend telehealth flexibilities, community health center funding, and other programs. The thorniest debate may be over enhanced Affordable Care Act subsidies, which are set to expire at year’s end.
Beyond the immediate deadlines, several broader policy issues are also gaining momentum:
- Permitting Reform: Members of both parties have expressed interest in updating federal permitting laws.
- FEMA Reform: The House Transportation and Infrastructure Committee is set to mark up a sweeping reform package aimed at modernizing the agency and improving funding and disaster response.
- Surface Transportation: While current surface transportation programs do not expire until September 30, 2026, committee leaders are beginning early discussions to prepare for the next major reauthorization.
- Artificial Intelligence: A handful of senators are pushing competing proposals to establish federal standards for regulating AI companies.
USDA Seeks Public Input on Roadless Rule
Last week, USDA Secretary Brooke Rollins announced plans to prepare an Environmental Impact Statement (EIS) on rescinding the USDA Forest Service Roadless Rule. The Rule, which was finalized in 2001, prohibits road construction, reconstruction, and timber harvest on nearly 59 million acres of national forest system lands. The public comment period is open through September 19.
Bipartisan Bills Aim to Boost Rural Public Lands Counties
Senators Adam Schiff (D-CA) and Steve Daines (R-MT) recently introduced two bills that aim to make rural communities in public lands counties more competitive for key federal funding opportunities.
The More Opportunities for Rural Economies (MORE) USDA Grants Act (S. 2618) would expand access to USDA programs, while the MORE DOT Grants Act (S 2619) focuses on transportation-related opportunities.
Both bills center on establishing a new statutory definition of High Density Public Lands Counties (HDPLCs), defined as counties with fewer than 100,000 residents and more than 50 percent of their land managed by the federal government.
Under the proposals, counties and other local governments within HDPLCs would benefit from:
- Reduced local match requirements for certain federal grants;
- Expanded technical assistance; and,
- Priority consideration for local governments that have not previously received awards under covered programs.
While the legislation does not clearly define which types of local governments would qualify, the intent appears to be broad, potentially covering a range of special districts and other local entities operating within HDPLCs.
Sens. Schiff, Curtis Urge USDA to Increase Red Cards at USFS
Senators Adam Schiff (D-CA) and John Curtis (R-UT) recently sent a bipartisan letter to USDA Secretary Brooke Rollins urging the department to strengthen the U.S. Forest Service’s (USFS) firefighting capacity ahead of peak wildfire season.
The lawmakers specifically called on USDA to increase the number of Incident Qualification Cards, known as “Red Cards”. Red cards are issued to USFS staff who complete the required training, experience, and physical fitness test to respond to wildfire incidents outside their full-time jobs.
Schiff and Curtis raised concerns that staffing shortages and limited credentialing are hampering the FS’s ability to meet the growing demand for wildfire response. They argued that expanding Red Card issuance would strengthen federal capacity and improve coordination with state and local partners as longer fire seasons continue to strain resources.
USDA Extends Comment Period on Department Reorganization
USDA recently extended the public comment period on the administration's proposed reorganization of the department. The plan, which was released for public comment on July 24, calls for relocating much of USDA's Washington-area workforce to five regional hubs across the country (Raleigh, NC; Kansas City, MO; Indianapolis, IN; Fort Collins, CO; and, Salt Lake City, UT). While the comment period was set to end on August 31, it will now remain open until September 30, giving stakeholders additional time to weigh in.
While supporters of the plan argue that shifting staff closer to agricultural regions could improve service delivery and responsiveness to local needs, critics counter that such a move could undermine USDA’s ability to coordinate with policymakers, lead to staff attrition, and disrupt programs that depend on close federal oversight.
For their part, a group of 15 Senate Democrats recently sent a letter to USDA Deputy Secretary Stephen Vaden urging the agency to ensure a transparent and open process for collecting feedback. The senators specifically requested a minimum 60-day comment period to allow stakeholders sufficient time to evaluate and respond to the proposal.
Relevant Hearings & Markups
House Committee on Appropriations
Tuesday, September 2 |5 p.m. ET | The Subcommittee on Labor-Health and Human Services will consider its spending bill for the upcoming fiscal year.
Wednesday September 3 |10:30 a.m. ET | The full committee will meet to consider the fiscal year 2026 Financial Services spending bill.
House Committee on Energy and Commerce
Wednesday, September 3 | 10:15 a.m. ET | The Subcommittee on Health will hold a hearing entitled “Examining Opportunities to Advance American Health Care through the Use of Artificial Intelligence Technologies.”
House Committee on Natural Resources
Friday, September 5 | 10:00 a.m. MT | The full committee will hold a field hearing in Grand Teton National Park, Wyoming, to examine opportunities to reauthorize and reform the Great American Outdoors Act to enhance public access, improve infrastructure, and create new outdoor recreations opportunities at national parks.
House Committee on Small Business
Wednesday, September 3 | 10:00 a.m. ET | The full committee will hold a hearing entitled, "Wired for Growth: How Expanding Broadband Can Revitalize Rural Small Businesses.
House Committee on Transportation and Infrastructure
Wednesday, September 3 | 10:00 a.m. ET | The full committee will consider bipartisan legislation – the Fixing Emergency Management for Americans (FEMA) Act (H.R. 4669) – that aims to streamline disaster response and recovery, reduce bureaucratic delays, and encourage state and local governments to take a more active role in emergency management. A section-by-section summary of the FEMA Act can be accessed here.
Senate Committee on Energy and Natural Resources
Thursday, September 4 | 9:30 a.m. ET | The full committee will meet to discuss the nominations of Laura Swett and David LaCerte to be members of the Federal Energy Regulatory Commission (FERC). Swett is currently employed as an energy attorney at the law firm Vinson & Elkins, while LaCerrte is the principal White House liaison and senior advisor to the director of the U.S. Office of Personnel Management. It should be noted that the addition of Swett and LaCerte would shift FERC to a 3-2 Republican majority.
Senate Committee on Finance
Thursday, September 4 | 10:00 a.m. ET | The full committee will hear testimony this week from HHS Secretary Robert F. Kennedy on President Trump’s 2026 health care agenda. The hearing comes amid mounting controversy following the recent dismissal of the Centers for Disease Control and Prevention (CDC) director, who has since filed a lawsuit against the administration. In the wake of that move, Senate Majority Leader Chuck Schumer (D-NY) and other Democratic leaders have urged Trump to remove Secretary Kennedy as well.