Federal Update: Congress Clears Immigration Funding Package, Setting Up Next Reconciliation Fight 

This week, the House gave final approval to a budget reconciliation package – the Secure America Act (S. 2) – that provides nearly $70 billion for immigration enforcement and border security activities through fiscal year 2029. President Trump signed the bill into law on Wednesday, June 10. 

The legislation provides $38.5 billion for U.S. Immigration and Customs Enforcement (ICE), $26 billion for U.S. Customs and Border Protection (CBP), and $5 billion in general funding for the Department of Homeland Security (DHS). By funding the agencies through FY 2029, the measure largely removes ICE and CBP funding from the annual appropriations process for the remainder of President Trump’s term. 

The House cleared the bill on a narrow 214–212 vote, capping a four-month partisan standoff over DHS funding. Democrats had sought new restrictions on the administration’s immigration enforcement tactics, but those negotiations ultimately collapsed. 

Republicans then used the budget reconciliation process to advance S. 2 without Democratic support. The fast-track procedure allowed the measure to pass the Senate with a simple majority, rather than the 60 votes typically needed to overcome a filibuster. 

Looking ahead, the completion of the immigration legislation is likely to shift attention to a potential third reconciliation bill. In fact, President Trump is already calling on Republican leaders to advance a $350 billion “Reconciliation 3.0” package to help support his proposed defense budget. However, several senior GOP leaders have raised concerns about using the partisan process to fund a significant portion of the Pentagon’s budget. There is also concern that lawmakers could once again look to county-administered safety-net programs as a source of savings to help offset the cost of the package. The debate could further complicate the already difficult FY 2027 appropriations process. 

CMS Releases Medicaid Work Requirement Regulation 

On June 3, the Centers for Medicare & Medicaid Services (CMS) released a long-awaited Interim Final Rule (IFR) implementing the Medicaid work verification requirements enacted under H.R. 1. The requirements, which are also referred to as “community engagement” requirements, generally require certain Medicaid beneficiaries to document at least 80 hours per month of work or other qualifying activities. 

The rule is lengthy and complex and will require further review. However, states and advocates are already raising concerns that CMS has adopted a more restrictive definition of the “medical frailty” exemption than anticipated, potentially going beyond the parameters outlined in the statute. 

Under the rule, states generally would not be permitted to categorically exempt individuals based solely on a particular diagnosis or health condition. Instead, states would need to determine whether the individual’s condition prevents them from working or otherwise meeting the community engagement requirement. For example, a cancer diagnosis alone would not necessarily be sufficient to qualify for an exemption. The individual may also need to provide documentation showing that the condition limits their ability to meet the requirement. 

This interpretation could significantly increase the paperwork burden on beneficiaries, health care providers, and eligibility workers. Beginning in 2028, states would only be permitted to rely on documentation issued within the preceding 12 months when verifying an exemption. 

The rule does allow individuals to self-attest to work requirement exemptions during 2027, which may provide states with additional time to establish the necessary systems and procedures. 

According to reports, CMS had previously reassured states in informal discussions that they would have greater flexibility in implementing the medical frailty exemption. Some states may now need to revisit decisions made on the basis of that earlier guidance. The apparent shift could also bolster efforts to persuade Congress to delay implementation of the Medicaid work requirements and may provide a basis for legal challenges to the agency’s interpretation. 

Interior Announces $461 Million for Parks and Outdoor Recreation 

On June 8, the Department of the Interior announced more than $461 million in Land and Water Conservation Fund (LWCF) investments for parks, trails, playgrounds, and other outdoor recreation projects nationwide. The LWCF was permanently funded through the Great American Outdoors Act, which was signed into law in 2020.  

The new funding includes more than $327 million in formula grants to states and territories, which can support eligible local government projects, as well as $134 million in competitive funding. California is set to receive the largest share of the formula funding, with an allocation of nearly $27.6 million. 

The Department also announced new funding opportunities through two National Park Service programs: up to $125 million through the Outdoor Recreation Legacy Partnership Program for park and recreation projects in communities with limited access to outdoor spaces, and up to $9 million through the Readiness and Recreation Initiative for projects near eligible military installations and Sentinel Landscapes. 

Legislation Introduced to Limit DOI and Forest Service Layoffs 

Representatives Jared Huffman (D-CA) and Joe Neguse (D-CO) recently introduced legislation – the Public Lands Workforce Stability Act (H.R. 8523) – that would prohibit additional reductions in force at the Department of the Interior (DOI) and U.S. Forest Service through the end of fiscal year 2030. 

The legislation is intended to address ongoing concerns about staffing shortages at federal land management agencies. Supporters argue that workforce reductions have left DOI and the Forest Service with fewer personnel to carry out core responsibilities, including wildfire prevention and response, fuels reduction projects, public lands maintenance, watershed protection, recreation management, and the stewardship of wildlife habitat. 

U.S. Forest Service Launches New Recreation Mobile App 

The U.S. Forest Service recently launched a new mobile app to help visitors plan trips to recreation sites across the National Forest System. The app (National Forests and Grasslands) provides information on trails, campgrounds, closures, amenities, safety alerts, and recreation opportunities such as hunting, fishing, biking, horseback riding, and water activities. 

Visitors can also download maps for offline use in areas with limited cell service and add optional layers with wildfire information and National Weather Service alerts. The new app will replace nearly 30 older agency apps and is available for both iOS and Android devices. 

The app can be downloaded to your device from these links: Apple / Android