State-federal legislation news and updates from NCSL.

Oct. 6, 2026

Happening this week: The Centers for Medicare & Medicaid Services announced a new Medicaid waiver, the U.S. Senate released the Bipartisan American Affordability and Jobs Act and federal funding for the State and Local Cybersecurity Grant Program lapsed Oct. 1.

A new Medicaid waiver option aims to expand access to health services for people with disabilities before institutional care is needed. A 2025 law created the waiver authority, known as Section 1915(c)(11), which allows states to offer home and community-based services to individuals who do not yet meet an institutional level of care, the current eligibility standard.

The new authority permits states to establish needs-based eligibility criteria below the institutional care threshold, creating a pathway to provide services earlier, and potentially prevent or delay institutionalization. CMS says the waiver could be used to serve populations such as:

States must demonstrate that implementation will not materially increase wait times for people who meet an institutional level of care and that per-capita Medicaid spending under the waiver remains below institutional care costs. CMS is developing guidance and application materials, with waiver approvals expected to begin in 2028. The law also appropriated funding to support state planning and implementation.

► CMS: CMS 1915(c)(11) Fundamentals Training Deck

► NCSL: The Medicaid Toolkit

Senate Releases Permitting Bill Text | A long-awaited bipartisan bill would streamline permitting and environmental review processes, provide project certainty, produce more cost-effective energy and more, according to backers. The Bipartisan American Affordability and Jobs Act is not expected to receive a vote until after the November elections and could face headwinds in the House, which passed its own permitting bill, the SPEED Act, in December last year.

► U.S. Senate: Bipartisan American Affordability and Jobs Act of 2026

► CRS: HR 4776 - SPEED Act

Court Blocks Elections Requirements for FEMA Grant | Last week, a federal district court blocked the Federal Emergency Management Agency from requiring states to meet new election requirements to receive funds from the Homeland Security Grant Program. If these requirements were allowed to process, up to 20% of the total grant award would be withheld for  states failing  to submit plans to replace electronic voting systems with equipment that accepts hand-marked paper ballots. Counties in Ohio, Tennessee and Texas filed a lawsuit against the agency, claiming “Congress did not create the HSGP to empower the federal government to control state and local election procedures.” The grant program, housed in the Department of Homeland Security, was established to “assist state, local, tribal and territorial efforts in preventing, protecting against, mitigating, responding to and recovering from acts of terrorism and other threats.”

► FEMA: Homeland Security Grant Program

► HSGP NOFO: Notice of Funding Opportunity
► D.C. District Court: Nashville Government et al. v. DHS

► D.C. District Court: Opinion

State and Local Cybersecurity Grant Program Funding Lapses | With Cybersecurity Awareness Month beginning Oct. 1, funding for the State and Local Cybersecurity Grant Program lapsed for the third time since last fall. The grant was created in 2022 with a $1 billion budget to span four years to help state, local, tribal and territorial governments mitigate cybersecurity risks. In June, the House Appropriations Committee proposed funding for the Department of Homeland Security for fiscal 2027 (HR 9310). If the bill passes, the grant program would be extended by $50 million until Sept. 30, 2027. The measure has not been voted on.

►CISA: Cybersecurity Awareness Month

►CRS: H.R.9310 - Department of Homeland Security Appropriations Act, 2027

Senate Passes Overhaul of College Athletics Governance and Student Athlete Compensation | The Protect College Sports Act of 2026 grants limited antitrust exemptions to intercollegiate athletics associations to carry out certain aspects of their bylaws, especially those related to student-athlete compensation, student eligibility and transfer rules. The bill would impose a one-time transfer rule and five-year eligibility limit, cap annual compensation shared by colleges and affiliated entities at an estimated $48.8 million, and broadly preempt state laws governing name, image and likeness compensation and transfers while preserving athlete-agent, civil rights and consumer protection laws. It also would protect roster spots in nonrevenue, women’s and Olympic sports at schools with more than $50 million in revenue, limit conferences earning more than $700 million annually to 20 members, establish athlete health and safety protections, and cap agent fees at 5%. It’s the first bill on college athlete compensation to pass either chamber in Congress.

► CRS:  S 4668 - Protect College Sports Act of 2026

$2B for Grid Investments | The funding, from the Energy Department’s Office of Electricity, targets 31 grid improvement projects across 26 states. The projects are expected to replace or rebuild over 1,500 miles of transmission lines and install other grid improvements. The department says the investment could yield an additional 23 gigawatts of grid capacity.

► DOE: Speed to Power through Accelerated Reconductoring and Other Key Advanced Transmission Technology Upgrades

New Treasury Regulations on Scholarship Tax Credit | In accordance with the One Big Beautiful Bill Act in 2025, the Treasury Department and the Internal Revenue Service, promulgated two new regulations. The Interim final rule: Addresses requirements for states and SGOs to participate in the program and the Notice of proposed rulemaking: Seeks stakeholder comments that the IRS will consider before it releases a final rule containing definitions and clarifications not included in the IFR. States must opt in to the program, which goes into effect on Jan. 1, 2027. The IRS will hold a public hearing on the proposed rulemaking on Dec. 15 at 10 a.m. ET.

► Federal Register: Federal Scholarship Tax Credit (IFR)

► Federal Register: Federal Scholarship Tax Credit (NPRM)

► Treasury | The Trump Administration Advances the Establishment of America’s First Nationwide School Choice Program

Support Center for Defaulted Federal Loans; Interest Rate Reduction Extended | Borrowers who are in default on federal student loans have a new portal to use in applying for loan rehabilitation, consolidating their loans and making payments. The portal, created by the Treasury and Education departments, replaces a previous paper-based application. More than 9 million federal borrowers, or more than 20% of all borrowers, are currently in default on their loans. The Education Department also extended the deadline for borrowers to receive a 1% interest rate reduction if they enroll in auto pay for their loans by Dec. 31.

►Treasury and Education: U.S. Department of the Treasury and U.S. Department of Education Launch New Defaulted Loans Support Center

Virtual Events

Oct. 15 | What You Need to Know About the 2026 State Elections

Oct. 20-21 | NCSL Base Camp 2026

 

In-Person Meetings

Oct. 14-16 | Roundtable on Evaluating Economic Development Incentives

Nov. 5 | NCSL Post-Election Forum: Results, Trends and What’s Next

 

Professional Development for Legislative Staff

Oct. 7 | NALFO Professional Development Seminar

Oct. 11 | RELACS and LRL Professional Development Seminar

NCSL connects state legislators and legislative staff to learn from one another, exchange ideas and build relationships that strengthen state legislatures.

► Learn about NCSL’s meetings and events.

About Capitol to Capitol
Capitol to Capitol was established in 1994 to provide up-to-date information on important federal legislation. NCSL is committed to enhancing the role of states and state legislatures in the federal system.

About NCSL in D.C. | NCSL Staff in D.C.