NATIONAL CONFERENCE OF STATE LEGISLATURES
NCSL Capitol to Capitol
State-federal legislation news and updates from NCSL.
July 14, 2026
This week: NCSL calls on the Office of Management and Budget to postpone its proposed financial assistance rule over implementation burdens on the states. And we break down the state implications of the landmark 21st Century ROAD to Housing Act.
WASHINGTON WATCH: WHAT STATES NEED TO KNOW
NCSL Urges OMB to Postpone Financial Assistance Rule
NCSL is calling on the White House Office of Management and Budget to postpone a final rule that would revise the government-wide framework for managing federal grants in favor of deeper engagement with state and local governments. In a letter to the office, NCSL reaffirms its long-standing policy of favoring state discretion and flexibility in administering federal grant funds. While NCSL shares the OMB’s stated goals of improving transparency, accountability and consistency in the use of federal funds, the compressed timeline and scope of the proposed rule, titled "Regulation for Federal Financial Assistance" (91 Fed. Reg. 32,198), would impose significant new implementation burdens on states. Because nearly every state operates under balanced-budget requirements, new mandates and accelerated compliance deadlines could force states to divert resources from other priorities to meet the rule’s demands.
STATE-FED AT YOUR FINGERTIPS
Landmark Federal Housing Reform Bill Becomes Law | The bipartisan 21st Century ROAD to Housing Act aims to expand housing supply by easing federal regulations, encouraging zoning changes, adding program flexibility, and supporting manufactured, modular and affordable housing options. The bill, which became law on July 10 without President Trump’s signature, provides no new federal housing funding, it creates and updates grant programs to help states and local governments address housing affordability and availability.
► 21st Century ROAD to Housing Act (U.S. Senate)
SAMHSA Announces Behavioral Health Grants | More than $281 million in grants across 15 Substance Abuse and Mental Health Services Administration programs will support addiction treatment, overdose prevention and response, mental health and suicide prevention, integrated care, recovery supports, first responder training and workforce development. Key state opportunities include $34.7 million for First Responders-Comprehensive Addiction and Recovery Act grants, $22 million for Mental Health Awareness Training grants, $13.7 million for Promoting Integration of Primary Behavioral Healthcare, and $4.2 million for Assertive Community Treatment grants. Eligible applicants vary by program but generally include states, local governments, tribal entities, nonprofit organizations, mental health systems and healthcare facilities. Applications are due July 27.
► First Responders-Comprehensive Addiction and Recovery Act (SAMHSA)
► Mental Health Awareness Training Grants (SAMHSA)
► Promoting the Integration of Primary and Behavioral Health Care: States (SAMHSA)
► Assertive Community Treatment (SAMHSA)
HHS Cancels Dozens of Teen Pregnancy Prevention Grants, Announces Two New Ones | The Department of Health and Human Services canceled 53 of the 67 grants under the Teen Pregnancy Prevention Program, totaling about $68 million. The cancelations will affect grantees in more than two dozen states and come two years before the grants were set to expire. In a related action, the agency announced two new grant opportunities this week: Replicating Effective Teen Pregnancy Prevention Programs, with $63.4 million available; and Rigorous Impact Evaluation of Programs to Prevent Teen Pregnancy and Achieve Optimal Health, with $8.3 million available. State and tribal governments may apply by July 23.
► Past Teen Pregnancy Prevention Grant Recipients 2023–2026 (HHS)
► About the Teen Pregnancy Prevention Program (HHS)
► Replicating Effective Teen Pregnancy Prevention (TPP) Programs (HHS)
► Rigorous Impact Evaluation of Programs to Prevent Teen Pregnancy and Achieve Optimal Health (HHS)
📅 Upcoming NCSL Events
Virtual Events
Aug. 12 | Do Data Centers Deliver? Lessons Learned from Seasoned Tax Incentive Evaluators
In-Person Meetings
Jul 27-29 | NCSL Legislative Summit, Chicago
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.
