Transcript Highlights:

• recovery on federal grants.
• Federal F&A rate, also known as indirect cost recovery on federal grants.
• We, I think, have the same group for our federal fund update.
• In 2024-25, UC received more than $19 billion in federal funding.
• changes eliminate the Grad PLUS loan program and introduce new federal caps on federal loans.

Transcript Highlights:

• Each and every Washington home feels safe from the overreach of the federal government.
• We have balances on him at the federal level.
• When we always envision the federal government and state governments working together.
• That seems to be an expertise that the federal government has, not us.
• So if we want to have Medicaid, if we want to get federal dollars for federal...

Summary: State legislative leaders held a press availability focused on the upcoming session’s priorities, framing the federal government as the main source of pressure on Washington residents’ access to health care, food assistance, housing, and other services. They said the session would center on defending Washingtonians from federal overreach while also addressing affordability, with emphasis on a balanced 2025-27 budget, possible spending cuts, and longer-term tax reform. Leaders also said they expect to pursue measures on housing costs, transportation, child care, preventive health care, and energy/data-center impacts. A major topic was a proposed “millionaire tax” or income tax on adjusted gross income over $1 million. Leaders said the basic mechanics are largely agreed upon between House and Senate sponsors, though a draft is still pending and stakeholder outreach remains ahead. They described the proposal as part of a broader effort to rebalance the tax code, with some revenue potentially used to reduce more regressive taxes such as property taxes or to support credits for working families and small businesses. They also said any major new revenue would likely not arrive in time to solve the current biennial budget gap, though smaller tax changes and loophole closures could contribute. The leaders also discussed the House and Senate response to two citizen initiatives, saying the legislature will not hold hearings on them and that they will instead go to voters if certified. They rejected claims that the state constitution requires hearings or floor votes on such initiatives, and questioned the signature-gathering process described by the Secretary of State’s office. Another issue was a public records exemption bill related to child care providers; leaders said they were not tracking it closely but defended broader privacy and safety concerns for child care businesses and families. The press availability included a lengthy exchange about allegations of fraud and reports of journalists or others knocking on child care doors. Leaders said concerns should be reported to DCYF, the state auditor, or legislative auditors rather than handled by ad hoc visits, and they tied those concerns to broader fears about masked individuals, ICE activity, and public safety. On the budget, they said the rainy day fund is likely to be considered this year, especially if it helps avoid cuts to education, child care, and health care, and noted that federal policy changes could impose significant state implementation costs.

Transcript Highlights:

• We have some really challenging headwinds from the federal government.
• We have a federal government that is provoking energy threats here in Washington, and on and on.
• Each and every Washington home feels safe from the overreach of the federal government.
• We have balances on him at the federal level.
• That seems to be an expertise that the federal government has, not us.

Summary: State legislative leaders held a press availability to preview a difficult session focused on responding to federal policy changes they said were threatening Washingtonians’ access to health care, food assistance, housing, and energy stability. They said the House and Senate would prioritize affordability, budget balancing, and protecting residents from federal overreach, while also advancing bills on issues such as preventive health care, housing costs, child care, transportation, and energy/data center impacts. A major topic was a proposed state income tax on high earners. Leaders said the basic mechanics were agreed to between the House and Senate prime sponsors, including a 9.9% tax on adjusted gross income over $1 million, though drafting and stakeholder outreach were still ahead. They said any new revenue would not solve the current 2025-27 budget gap in time, so the immediate budget would rely mainly on cuts and transfers, with some discussion of smaller revenue measures and possible use of the rainy day fund. They also said the tax proposal would be paired with reductions in more regressive taxes, though details were not yet set. The press conference also focused heavily on a school face-covering bill and related public safety concerns. Leaders defended the bill as a response to fears about masked individuals, impersonation of law enforcement, and recent ICE activity, citing testimony from law enforcement and advocacy groups. They also discussed a public records exemption bill for child care providers, saying concerns about privacy and safety justified limits on public access and emphasizing existing oversight through DCYF, the state auditor, and legislative audits. On initiatives and other bills, leaders said two initiatives would go to voters rather than receive hearings, and they indicated Senate Bill 5926 was not moving forward in the Senate committee process. No votes were taken during the availability.

Transcript Highlights:

• </c> the federal government. the federal government.
• </c> regulate federal operations at all. regulate federal operations at all.
• </c> have they should have under federal law. have they should have under federal law.
• Federal immigration authority rests with the federal government, and the state cannot prevent federal
• </c> acting under federal authority. acting under federal authority.

Committee: Senate Health and Human Services

Transcript Highlights:

• But under the federal definition, they all are exempt.
• It has never been a solely federally funded program. The federal funding was seed money to start.
• It has never been a solely federally funded program. The federal funding was a seed money to start.
• or not decided to invest in federal Promise Neighborhoods.
• I understand the federal model.

Summary: The Assembly Budget Subcommittee on Human Services held an informational hearing focused on the impacts of federal HR1 on CalFresh and Medi-Cal, along with related state mitigation efforts. CDSS, DHCS, DDS, county representatives, LAO, and Finance discussed automatic exemptions, data-sharing between departments, county workload, and the timing of implementation. CDSS said about two-thirds of adults ages 18 to 64 are already known to be exempt in CalFresh, and that administrative data matches could newly exempt about 200,000 of the roughly 955,000 adults potentially at risk. DHCS said Medi-Cal work requirements would begin in 2027 and the department is working to automate exemptions, including for IHSS recipients and some caregivers, while DDS said its population is expected to be covered by auto-exemptions. County welfare directors emphasized that individualized worker contact is critical, that counties need more staffing and stable funding, and that without it they expect delays, higher error rates, and reduced exemption screening capacity. Members pressed for written timelines, county-by-county impact data, and clearer guidance; the administration said it would provide follow-up materials and technical assistance. No votes were taken. The committee then heard a separate discussion on a proposed CFAP expansion or “CFAP Plus” concept to provide state-funded benefits to additional populations affected by HR1, including lawfully present non-citizens and ABODs. CDSS said implementation could not occur before October 1, 2027 because of policy and system-design constraints, and that adding unique eligibility rules would increase complexity and cost. Finance cautioned that any expansion would have General Fund impacts likely in the hundreds of millions to multiple billions. Members asked for cost estimates and technical feedback on trailer bill language, and CDSS said it would review the proposal and respond. The hearing also covered CDSS’s CalFresh strategic plan and mandated reporter training updates. CDSS said it is hiring a strategic plan lead to develop a long-term, data-informed CalFresh plan, and that the revised mandated reporter training is on track for launch in fall/winter 2026, ahead of the July 1, 2027 statutory deadline. The training will include updated content on structural racism, ICWA protections, implicit bias, and the distinction between reporting and supporting families. Members praised the work and asked for continued updates. Later panels focused on Promise Neighborhoods, Stop the Hate, and housing programs. Promise Neighborhood advocates and CDSS described the state’s prior $12 million investment, a positive evaluation showing roughly a 4-to-1 return, and a new proposal to support place-based partnerships and community schools through AB 1969. Stop the Hate grantees and CDSS reported that the program has provided direct services, prevention, and statewide coordination to millions of Californians, and urged reauthorization before funding expires; members asked for best-practice language and discussed focusing future funding on solidarity work, harm reduction, legal services, and education. Finally, CDSS presented on the CalWORKs Housing Support Program and Housing and Disability Advocacy Program, saying proposed General Fund investments of $105 million and $55 million would prevent funding cliffs and allow the programs to continue through 2026-27, while the absence of new funding would force reductions in housing assistance, subsidies, and enrollments.

Transcript Highlights:

• The National Environmental Policy Act, the Federal Power Act, the Federal Land Policy and Management
• It requires every federal agency before it spends federal money, issues permits, licenses, or approval
• We may be using federal funds for a project or crossing federal lands for a project.
• I want to make note, again, as we talk about our compliance with federal law, and the federal law has
• I want to make note, again, as we talk about our compliance with federal law, and the federal law has

Committee: Senate State Affairs

Transcript Highlights:

• </c> this chamber that when our federal this chamber that when our federal government<00:55:15.040><c
• </c> federal government fails to act. federal government fails to act.
• No federal draw down, no federal match. So this needs to be put back in.
• </c> No federal draw down, no federal match. No federal draw down, no federal match.
• The federal choose not to do that.

Transcript Highlights:

• Primarily through federal funding.
• And then they also get IDEA, Part B, federal funds.
• Okay, so there's 143.7 million in federal CCDF money there.
• Okay, so there's 143.7 million in federal CCDF money there.
• The federal judges were given a 1% raise on January 1.

Committee: House Budget

Transcript Highlights:

• to train for a federal mission.
• But because we have agreed to utilize federal money to train the Guard for a national mission, federal
• a federal asset?
• Them into federal assets for federal missions that are not at all clear.
• law or federal regulations.

Committee: House Courts, Corrections & Justice Committee

Transcript Highlights:

• The federal tax credit scholarship program is effective January 1 of 2027.
• So I'm going to write $1,700 to a charity to do this to reduce my federal taxes by $1,700.
• At the federal level, there are going to be cuts and things.
• I don't think we need a federal broke program in order to give to our students.
• We take money from the federal government and we don't have enough money here.

Bills: SB1142 , SCR1028

Committees: House Ways & Means , House House Ways & Means Committee of Reference

Keywords: scholarships, tax credit, education funding, nonprofit organizations, Arizona Revised Statutes, constitutional amendment, state revenue, tax policy, legislative approval, two-thirds vote

Transcript Highlights:

• </c> would conflict with the federal would conflict with the federal definitions.<00:17:56.640><c> So
• And so when it's on the federal level.
• </c><00:23:03.440><c> And</c><00:23:03.520><c> and</c> Alabama law against federal law.
• And and Alabama law against federal law.
• ><c> about</c> federal thing, federal statements about federal thing, federal statements about it<00:

Bills: HB139 , HB172 , HB156 , HB139 , HB172 , HB156

Committee: House Health

Keywords: HB139, Alabama discrimination, civil rights, public accommodations, employment discrimination, equal access, protected classes, race discrimination, sex discrimination, religious discrimination, age discrimination, disability discrimination, national origin discrimination, school board discrimination, labor organization, employment agency, retaliation, private right of action, punitive damages, attorney fees

Transcript Highlights:

• , and a California Indian as defined in the federal law.
• And these are for federal fiscal year 24.
• get additional federal funds that way.
• So the new definition based on the new federal So the new definition, based on the new federal law that
• This federal requirement is different in that even...

Committee: All ALC-HOSPITAL, MEDICAID, & DEVELOPMENTAL DISABILITIES STUDY SUBCOMMITTEE

Summary: The subcommittee first recognized the Arkansas Community Colleges Leadership Institute and received a brief DHS update on the Living Choices Assisted Living Waiver reimbursement process, including that the new cost-reporting period began in January and provider/contractor calls are underway. The main presentation then focused on SNAP and TANF, with DHS describing federal changes under the One Big Beautiful Bill that tighten SNAP work requirements for adults ages 18 to 64 without certain exemptions, remove some prior exemptions, and add new federal definitions for Native American populations. DHS also reviewed SNAP Employment and Training providers, their service areas, projected budgets, participant characteristics, and outcomes, noting that the program is currently voluntary but will shift toward mandatory participation for those subject to the new rules. Members asked detailed questions about how mandatory participation will be implemented, how referrals will be made, what other training options exist, how verification of work, volunteering, disability, and exemptions will be handled, and whether DHS has enough funding and provider capacity. DHS said it will conduct verbal and written notices during eligibility interviews, make direct referrals to providers, use six-month recertifications and documentation from employers or volunteer organizations, and apply sanctions for noncompliance after determining whether a good cause exists. Members also requested additional data, including age breakdowns of at-risk SNAP recipients, provider-level outcomes and costs, and information on other training programs such as WIOA. The committee then moved to Medicaid community engagement requirements for ARHOME, which DHS said are also required by the same federal law and must be implemented by January 1, 2027. DHS said it is preparing policy, system changes, communications, and a customer-service/outbound verification vendor, and plans a soft launch beginning in July to help clients understand what would be required if the rule were already in effect. Members raised concerns about timing, local versus central decision-making, and how clients in rural areas will be notified and assisted. The meeting concluded with broader discussion of the committee’s workforce-development goals, the recently released Alliance for Opportunity audit, and interest in continuing the contract with that group to help guide future reforms.

Transcript Highlights:

• This matches the federal definition for the term 'alien.'
• to comply with federal requirements that are prescribed as a condition to the allocation of federal
• to comply with federal requirements that are prescribed condition to the allocation of federal funds
• of federal funds to the state.
• Federal immigration law hasn't changed.

Bills: HB2447 , HB1364 , HB2632 , HB2637 , HB2520 , HB2235 , HB2401 , HB2574

Committee: House State Government & Tribal Relations

Keywords: shark conservation, marine life, state symbol, ecological importance, biodiversity, bingo, raffles, charity, nonprofit, amusement games, revenue threshold, licensing, fundraising, citizenship, immigration, terminology, rights, legal status, public records, public disclosure

Transcript Highlights:

• Nick is not just a federal bureaucrat.
• So my question was this: there's some federal programs that have federal guidelines that we go by, and
• It's more at the federal level.
• There's some federal programs that have federal guidelines that we go by, and I understand that you're
• It's more at the federal level.

Committee: All ALC-HOSPITAL, MEDICAID, & DEVELOPMENTAL DISABILITIES STUDY SUBCOMMITTEE

Summary: The committee heard testimony from Nick Moore, Acting Assistant Secretary of the Office of Career and Technical Education, on efforts to better align workforce, education, and human services programs. Moore argued that WIOA, Perkins, and ESSA were designed to function as an integrated talent system, but that federal and state bureaucracy has kept them siloed. He said the Department of Labor and OCTAE are working on more integrated state plan guidance, including a 2026 plan modification timeline, combined Perkins/WIOA plans, and greater use of labor market information to align training with in-demand jobs and Workforce Pell. Moore emphasized reducing overhead, cross-training staff, using common intake and integrated case management, and focusing on the “shadow labor force” of people facing benefit cliffs, child care barriers, or other obstacles to work. He repeatedly urged states to use waivers and flexibility where possible, to consolidate or streamline local workforce structures, and to hold programs accountable through measures such as labor force participation, training-related employment, retention, and cost per successful outcome. Members asked about the balance between flexibility and accountability, the role of employers versus postsecondary institutions, rural “training deserts,” state waivers, and data systems such as Mississippi Spark and Arkansas Launch. Moore said states should use technology and integrated intake to co-enroll eligible participants in multiple programs and better match people to jobs. In response to questions, Moore said some federal rules cannot be waived, but many reporting and administrative requirements can be streamlined, and he encouraged Arkansas to propose ideas for waivers or state-level integration. He also discussed the need for enhanced wage records and state longitudinal data systems to improve workforce planning and economic development. After Moore’s presentation, DHS Secretary Janet Mann and Director Jay Hill gave a brief update on reimbursement rates, saying the department had compiled more than 100 public comments, recommended holding the current rate, and was awaiting executive review; they estimated the process could take 30 to 60 days. The committee then adjourned, noting a later audit presentation scheduled for the afternoon.

Transcript Highlights:

• I want to ask my first question on cooperative federalism.
• And said no, you're going to do the federal plan.
• That to me does not speak of cooperative federalism.
• In fact, I also share Chairman Capito's affection for cooperative federalism.
• First of all, the cooperative federalism. Again, states being responsible.

Committee: Senate Environment and Public Works Committee

Transcript Highlights:

• And so we're essentially subleasing through the federal government and if the federal government decides
• So exclusive use contracts through state and federal agencies pull these aircraft away and the federal
• federal pool?
• federal approval.
• After complying with federal requirements and some significant federal delays, the BDO published our

Committee: House State Affairs

Transcript Highlights:

• In the last year, we have seen federal funding In the last year, we have seen federal funding frozen,
• And when we don't have a reliable federal partner, a federal partner that continues to chip away at their
• And when we don't have a reliable federal partner, a federal partner that continues to chip away at their
• cuts, federal cuts, but we have to look at kind of what the root cause of those federal cuts are, and
• Yes, we have been impacted by those federal cuts. We receive money from the federal government.

Committee: Joint Joint Committee on Ways and Means

Transcript Highlights:

• This is... ...income tax to the federal system.
• But to be above the federal poverty line, it's just over $27,000.
• The federal poverty line for a family of four was $31,000.
• poverty line or 185% of the federal poverty line.
• We have most of these programs are federally authorized.

Committee: All ALC-HOSPITAL, MEDICAID, & DEVELOPMENTAL DISABILITIES STUDY SUBCOMMITTEE

Summary: The committee first heard from Arkansas Workforce Connections and the Department of Commerce about a package of nine federal waivers submitted to the U.S. Department of Labor under WIOA and Perkins. The officials said the waivers would give Arkansas more flexibility over governance, funding, affiliate centers, and program rules, and that the state expects a response by August 29. They said the package is modeled more closely on Louisiana’s approved waivers than on states with more denials, and outlined a possible transition plan if approved, including a transition committee, policy changes, board training, staffing, and follow-up legislation. Members asked about whether the waivers would affect services for people with disabilities; the officials said not directly, because the waivers focus on WIOA Titles I and III rather than vocational rehabilitation under Title IV. The committee then focused on “benefit cliffs” and work disincentives in safety-net programs. Researchers from the Georgia Center for Opportunity and the Alliance for Opportunity explained how earnings loss rates from taxes and benefit phaseouts can exceed 50%, 75%, or even 100%, making additional work or promotions financially unattractive. They presented Arkansas-specific modeling showing multiple cliffs and stacking effects across SNAP, Medicaid/CHIP, LIHEAP, WIC, reduced-price lunches, child care, and housing assistance, and argued that child care and health coverage create some of the largest disincentives. They suggested policy options including SNAP demonstration waivers, child care subsidy redesign, TANF outcome-based funding, Medicaid premium assistance and health savings accounts, and a possible small-scale pilot to test a more integrated safety net. Heather Webb of Arkansas Family Alliance and Molly Palmer of the Heart of Arkansas United Way added testimony from families, employers, and nonprofits. Webb described a working mother who lost Medicaid and a housing subsidy as her income rose, saying the cliff left her stressed despite earning more. Palmer said Arkansas’s ALICE population often works multiple jobs and still cannot meet basic living costs, and that employers report recruitment and retention problems when workers face benefit cliffs. Members asked for more data on savings and program impacts, and the witnesses said they could provide Arkansas-specific modeling and scenario analysis. The meeting ended with discussion of public-private partnerships, employer-sponsored insurance premium assistance, marriage penalties, and the need to coordinate or consolidate fragmented programs before adjourning.

Transcript Highlights:

• In January, the Federal Transit Administration In January, the Federal Transit Administration awarded
• Do you or federal dollars? And to what extent, what scale is that?
• , but I will say also the other federal dollars have still come through.
• But I will say also the other federal dollars have still come through.
• But we have leaned really heavily into pursuing every federal dollar.

Committee: Joint Joint Committee on Transportation

Summary: The Transportation Committee heard testimony on House Bill 4987, the Healey-Driscoll administration’s transportation bond bill financing long-term improvements to municipal roads and bridges. Administration officials said the bill would authorize more than $5 billion overall, including $1.2 billion for Chapter 90 over four years, $500 million for accelerated road and bridge repairs, $200 million for MBTA rail modernization and reliability, $200 million for transportation projects supporting housing development, $200 million for a new DCR parkway resilience and safety program, and reauthorizations for federal-aid highway projects, non-federal highway projects, municipal pavement, and Shared Streets and Spaces. They emphasized that the proposal is backed by Commonwealth Transportation Fund revenues, including registry fees, gas tax, and Fair Share surtax revenue, and said it would improve safety, reliability, housing production, and regional equity. Committee members asked about the four-year Chapter 90 authorization, the housing-related transportation funding, federal funding uncertainty, and how the MBTA money would support commuter rail electrification and regional rail. Administration witnesses said the multi-year structure would help municipalities plan and avoid more expensive deferred maintenance, that the housing funds would be flexible for infrastructure needs tied to development, and that the state is pursuing federal grants while relying on state-backed capital financing. They also described process improvements at MassDOT that have reduced project bid-to-notice timelines by 60% and said the rail modernization funds would support locomotive procurement, including battery-electric and Tier 4 diesel locomotives. The Massachusetts Municipal Association and local officials from Sherborn, Conway, and Yarmouth strongly supported the bill, saying the increased Chapter 90 funding and road-mile formula have made a major difference for small and rural communities and that four-year funding would improve predictability, project bundling, and cost savings. They cited local road, bridge, culvert, and gravel-road needs and urged favorable action. A Better City and MAPC also supported the bill but urged the committee to use it for broader transportation policy changes and new revenue tools, including possible reforms to TNC fees, regional pricing, and other funding mechanisms. The committee took no vote during the hearing and adjourned after testimony.

Transcript Highlights:

• Then we'll close out with federal student loan implications.
• IAIA relies on $13.5 million. of federal funds.
• It's very slow at the federal level.
• reliance is on federal dollars versus state dollars.
• On top of being a federal agency under the U.S.

Committee: House House Government, Elections & Indian Affairs