Capitol to Capitol | Sept. 22, 2025

Capitol to Capitol | Sept. 22, 2025

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

NCSL Update

Coalition of Organizations Support the Reauthorization of the State and local Cybersecurity Grant Program

NCSL, joined by six state and local government associations along with NASCIO and NEMA, called on Congress to reauthorize the State and Local Cybersecurity Grant Program for an additional 10 years and asking for robust funding to accompany this reauthorization. The House Homeland Security Committee passed the Protecting Information by Local Leaders for Agency Resilience (PILLAR) Act on Sept. 3 in a bipartisan vote. The bill will provide states and local governments with critical resources to bolster and modernize their cybersecurity protocols and defenses. The reauthorization proposal cements a 60-40 federal-state matching grant with the total amount of funding yet to be determined by congressional appropriations committees. The grant was set to expire on Sept. 30 but has been extended to Nov. 21 by way of inclusion in the recent House continuing resolution, giving Congress additional time to pass the PILLAR Act. At the 2025 NCSL Legislative Summit in Boston, a cybercrime policy was adopted that includes support for funding the state and local cybersecurity grant program.

Read the group's letter to congressional leadership.

NCSL Comments on Universal Service Fund Modernization

NCSL encourages the USF Working Group, co-chaired by U.S. Sens. Deb Fischer (R-Neb.) and Ben Ray Luján (D-N.M.), to expand the USF to support next-generation communication technologies and assess whether the current funding model reflects today's connectivity landscape. NCSL approved a resolution supporting Universal Service Fund reform at the 2025 Legislative Summit in Boston.

The USF is a federal program established by the Communications Act of 1996 to ensure access to telecommunications and broadband services for all U.S. residents, especially those in rural and low-income areas. Congress is currently reexamining the USF's outdated funding mechanism.

The USF is primarily funded by contributions from telecommunications carriers, such as wireline and wireless companies, to support programs including Lifeline (for low-income households), High Cost (for rural infrastructure), E-Rate (for schools and libraries) and Rural Health Care. Yet, as more people switch from telephony to broadband services, the fund's contribution base has dwindled because broadband internet service providers are not required to contribute to the USF. As a result, Congress has increased its focus on modernizing the USF's funding structure, including potentially expanding the types of providers and services assessed for contributions to the fund.

Congressional Updates

SUPPORT Act Reauthorization Awaiting President's Signature

A bill to reauthorize the SUPPORT Act of 2018 would renew programs to combat opioid use disorder and fund health services for mothers and infants, infection monitoring and first responder training. The bill-titled SUPPORT for Patients and Communities Reauthorization Act of 2025-supports fetal alcohol spectrum disorder care, state and tribal opioid initiatives, peer support, youth drug prevention and workforce development. It also enhances cybersecurity for the suicide prevention lifeline and mandates opioid safety reviews. Funding is extended through 2030, with requirements for reporting, evaluation and public input.

The funding and resources included in the bill will enable states and other stakeholders to continue their efforts to address the ongoing overdose crisis.

Read NCSL's letter of support for reauthorization of the bill.

Deadline to Keep Government Funded Draws Near

The path to averting a federal government shutdown appears to have narrowed as the Sept. 30 funding deadline approaches. The House passed a short-term funding bill on partisan lines, 217-212, to keep the government operating through Nov. 21. The House bill is widely considered a "clean" continuing resolution that largely extends current funding with an added $88 million to fund security for members of Congress, Supreme Court members and federal officials and to fix a funding hole in Washington, D.C.'s city budget. However, the Senate failed to move any legislation out of its chamber, with the House version failing 44-48 and a Democratic-led bill failing 45-47.

Senate passage remains key, and compromise is required as Democrats retain filibuster capability. However, President Trump has called for Republicans to move their own funding bills without any negotiation between parties. Democrats are calling for major fixes to the 2025 Federal Reconciliation Bill, including an extension of Affordable Care Act premium tax credits and changes to Medicaid and SNAP, which provides even more difficulty as Republicans differ on the need for changes.

House members are scheduled to return to Washington after the shutdown deadline, Senate members Sept. 29. ABC News reported that Senate Majority Leader John Thune said, "The upper chamber will hold another vote on the House-passed funding bill when they return from recess." Stay tuned.

Administration Updates

CMS Releases Rural Health Transformation Program Applications

Part of the 2025 budget reconciliation bill, the Rural Health Transformation Program will distribute $10 billion annually from 2026-2030 per two formulas: 50% distributed equally among all approved states and 50% allocated by the Centers for Medicare & Medicaid Services based on rural population, the proportion of rural health facilities in the state, the situation of certain hospitals in the state and other factors. CMS has outlined five strategic goals for the program: supporting preventive health and addressing root causes of disease, sustaining access to rural providers, developing the workforce in rural communities, innovative care and tech innovation.

States are in various stages of educating the public and soliciting stakeholder input.

The notice of funding opportunity is now available on the RHTP website. There will be a single application for the funds, which include $50 billion to states, spread over five years. Applications are being coordinated by governors' offices (or their designees) and are due by Nov. 5. CMS has scheduled an informational webinar on Sept. 25.

Additional information is available at the links below:

• RHTP NOFO
• NOFO Press Release
• RHTP Webpage
• RHTP FAQ (updated frequently)
• Email CMS for technical assistance: [email protected]

Department of Education Releases Letter on Educational Flexibility Program for States

The letter explains the existing Ed-Flex Program, which allows states to waive certain federal requirements for local education agencies without having to submit waivers to the department. It also details the application process and restrictions on what requirements can be waived. Read more

Department of Education Announces Additional Grant Funding

The department is repurposing money from cancelled grants to increase funding for charter schools, historically Black colleges and universities, tribally controlled colleges and universities, and civics education. Read more

Links