Capitol to Capitol | Jan. 12, 2026

Capitol to Capitol | Jan. 12, 2026

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

NCSL Updates

NCSL Coalition: Spending Bill Should Prevent Fiscal Burdens for States

In a letter to congressional leadership, NCSL and state and local government groups urge prompt action to help states avoid unintended fiscal burdens and to stabilize Supplemental Nutrition Assistance Program operations disrupted by recent federal changes and the government shutdown. Read the letter.

Administration Updates

New Federal Dietary Guidelines

The newly released Dietary Guidelines for Americans, 2025-2030, issue several changes, including increasing recommended protein intakes, avoiding highly processed foods, which are not defined, removing specific alcohol limits and avoiding added sugars. The guidelines, which are issued every five years, include an updated food pyramid. More information can be found in the Scientific Report of the 2025 Dietary Guidelines Advisory Committee and on the website realfood.gov.

Proposed Rule Released for Child Care and Development Fund

The Administration for Children and Families has proposed roll-backs to Biden-era requirements governing the Child Care and Development Fund, which helps make child care more affordable for low-income families. States would have the option to implement the changes included in the earlier rule.

The four requirements that would be repealed:

• Capping family co-payments at 7% of family income.
• Using some grants and contracts to provide direct services for certain populations of children.
• Paying providers prospectively instead of on a reimbursement basis.
• Paying providers based on enrollment rather than attendance.

All states had received waivers to delay implementation until at least August 2026, and states were offered additional waivers through August 2028. Comments on the rule are due by Feb. 4. Read the proposed rule here.

Administration for Children and Families Freezes Human Services Funding in 5 States

The administration froze $10 billion in funding for the Child Care and Development Fund, Temporary Assistance for Needy Families and Social Services Block Grant for California, Colorado, Illinois, Minnesota and New York. Read the press release here. On Jan. 9, a federal judge ruled the Trump administration must continue the $10 billion in welfare funds earmarked for the five blue states. Read Politico article here.

DOT Releases Funding for Road Infrastructure Improvements

The $1 billion in funding will support 521 projects across 48 states and one U.S. territory. The projects, part of the Safe Streets and Roads for All program, will focus on improving intersection safety and will largely be overseen by local government with support from state transportation departments.

Transportation Infrastructure Program Grants Available

The department has opened applications for $1.5 billion in funding through the BUILD (Better Utilizing Investments to Leverage Development) program. Eligible projects include those that facilitate tourism, support energy development, improve travel for families, improve roadway capacity, increase transportation affordability and beautify transportation infrastructure.

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