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    Legislative Services

    County Issues Newsletter | August-September 2026

    News Article | September 18, 2026

    D.C. Watch

    County News | Legislative News
    Legislative Services

    Government Funded Through Dec. 11

    On Sept. 2, President Donald Trump signed H.R. 6500, the Continuing Appropriations and Extensions Act, 2027 (P.L. 119-103), averting a shutdown at the start of fiscal year 2027. The House cleared the Senate measure 370-48 on Sept. 1 after the Senate passed it 90-6 in August. The continuing resolution holds funding at fiscal 2026 levels across all 12 appropriations divisions and pushes final funding decisions past the Nov. 3 midterm elections.

    OMB Uniform Guidance Rule Delayed | A County Win

    The continuing resolution delays implementation of the Office of Management and Budget’s proposed rewrite of 2 CFR Part 200 until Dec. 11. The rule governs how federal grants are administered, and counties raised substantial concerns during the comment period. TAC will continue to monitor this issue and provide updates. The National Association of Counties’ preparation guide is available through its 2 CFR Part 200 resource hub.

    Transportation Funding Cliff Arrives Oct. 1

    The continuing resolution extends Infrastructure Investment and Jobs Act (IIJA) surface transportation authorities and Highway Trust Fund expenditure authority through Dec. 11, but it does not extend the advance appropriations made under Division J of the IIJA. NACo estimates that federal funding for roads, bridges, safety and transit will drop roughly 15% absent new appropriations, with some programs losing funding entirely.

    Long-term reauthorization remains stalled. The BUILD America 250 Act (H.R. 8870) cleared the House Transportation and Infrastructure Committee in May, 62-2, but has seen no floor action.

    SNAP Administrative Cost Shift Takes Effect Oct. 1

    Under H.R. 1, the state share of Supplemental Nutrition Assistance Program (SNAP) administrative costs rises from 50% to 75% beginning Oct. 1. The Texas Health and Human Services Commission estimates the change will add roughly $117 million annually to state costs.

    A separate benefit cost share begins in fiscal year 2028 for states with payment error rates above 6%. At Texas' current 8.32% rate, the state's exposure is estimated at nearly $709 million per year. SNAP is state-administered in Texas, so the immediate pressure falls on the state budget, but counties should anticipate downstream effects on eligibility operations and local food assistance networks.

    Farm Bill 2.0 Advances From Committee

    The Senate Agriculture Committee initially failed to advance the Agricultural Act of 2026 on Aug. 6. Chairman John Boozman (R-Arkansas) recessed the committee rather than adjourned, preserving the bill and its adopted amendments. On Sept. 16, the committee reconvened and passed the bill, moving it forward.

    The legislation includes provisions affecting SNAP, including changes to state responsibility for benefit payment errors. Its path to final passage remains subject to further action in the Senate and House.

    USPS Mail Ballot Rule Blocked for November

    On Sept. 4, Judge Indira Talwani issued a preliminary injunction barring the U.S. Postal Service from implementing key parts of its final ballot mail rule for the 2026 election. On Sept. 14, the U.S. Supreme Court denied the administration’s request to lift the injunction, leaving the rule blocked for the November midterm elections. The court said the government was unlikely to succeed on its challenge to the injunction, but the ruling did not resolve the underlying merits of the case.

    Counties Press for Disaster Reform

    Marking National Preparedness Month, NACo is urging Congress to advance the FEMA Act (H.R. 4669). County priorities include converting public assistance from reimbursement to a grant-based structure with a 120-day funding requirement, establishing a universal disaster application, providing formula-based mitigation funding guaranteeing at least one pre-approved project per county and treating counties as states under federal procurement rules.

    Key Dates Ahead

    • Oct. 1 — SNAP administrative cost shift and IIJA advance appropriations lapse.
    • Nov. 3 — Midterm elections.
    • Dec. 11 — Continuing resolution expires. OMB uniform guidance delay, National Flood Insurance Program and surface transportation extension all sunset.

    For the full OMB uniform guidance analysis or the fiscal 2027 appropriations tracker, email Williamc@county.org.