Federal Update: DHS Shutdown Standoff Continues as Congressional Recess Looms 

Ahead of a two-week spring recess, lawmakers have made little progress toward ending the partial shutdown of the U.S. Department of Homeland Security (DHS), which is now approaching six weeks. Despite mounting pressure, negotiations between congressional leaders remain at an impasse, with key disagreements – particularly over immigration enforcement funding – continue to block a resolution. While both chambers are still expected to leave for recess, leaders have warned those plans could change if a deal is not reached. 

Frustration on Capitol Hill has intensified as multiple funding votes have failed in recent days, underscoring the lack of a clear path forward. Earlier today, Senate Majority Leader John Thune (R-SD) indicated that Republicans have put forward what they view as their final offer and signaled cautious optimism about a potential breakthrough before the end of the week. The proposal would fund most of DHS while excluding ICE’s Enforcement and Removal Operations, along with additional language intended to address Democratic concerns. 

In the meantime, operational impacts of the shutdown are becoming more pronounced, with reports of rising absenteeism among TSA officers, longer airport wait times, and growing concerns about service disruptions. These pressures have added urgency to negotiations, though it remains unclear whether they will be enough to break the stalemate before recess begins. 

In other developments, the Senate confirmed former Senator Markwayne Mullin as Secretary of DHS earlier this week, placing him at the center of efforts to manage the department during the ongoing shutdown. The 54-45 vote largely fell along party lines, with all Republicans except Senator Rand Paul (R-KY) supporting the nomination. Democratic Senators John Fetterman (D-PA) and Martin Heinrich (D-NM) also voted in favor of Mullin’s nomination.  

Beyond DHS, lawmakers are also beginning to prepare for a potential large-scale supplemental funding request tied to U.S. involvement in Iran. While a formal request has not yet been submitted, early estimates suggest it could exceed $200 billion and would be used to replenish military stockpiles and support ongoing operations. The proposal is already facing skepticism from members of both parties, with lawmakers raising concerns about cost, scope, and the lack of clarity around the administration’s long-term strategy. 

Analysis Shows That Disaster Aid Approvals Show Growing Disparities Across States 

A recent analysis by Politico’s E&E News of federal disaster declarations found a significant gap in approval rates for disaster assistance requests, raising concerns about consistency and predictability in the process. Since returning to office, the Trump administration has approved roughly 23 percent of disaster aid requests from Democratic-led states, compared to 89 percent for Republican-led states. The review, which examined thousands of declarations since the creation of FEMA suggests this disparity is unprecedented in the program’s history. 

The analysis also found that decisions on requests from Democratic-led states are taking significantly longer, an average of 80 days compared to 39 days for Republican-led states. In several cases, requests were denied even after FEMA determined the damage met established federal thresholds for assistance. Historically, presidents have closely followed FEMA’s recommendations, particularly when damage thresholds are met. 

Federal officials have pushed back on claims of politicization, stating that disaster determinations are based on a more thorough review process. However, some state leaders and policy experts have raised concerns about the implications for equitable access to disaster funding, particularly as FEMA’s Public Assistance program plays a critical role in reimbursing local governments for response and infrastructure recovery costs. 

For counties, the findings underscore ongoing uncertainty in the federal disaster declaration process, including approval timelines and consistency in applying eligibility criteria – issues that may have implications for budgeting, recovery planning, and cash flow following major events. 

Interior Announces Major Western Water Investments 

The Department of the Interior recently announced $889 million in funding for water infrastructure projects across the West, including $540 million for California, through the Bureau of Reclamation. The funding – authorized under H.R. 1 – will support a series of targeted upgrades to Central Valley Project facilities, including $235 million to rehabilitate the Delta-Mendota Canal (raising embankments, repairing structures, and advancing a new lined segment), $200 million for the Friant-Kern Canal, and $50 million to address subsidence impacts on the San Luis Canal. Additional investments include $15 million to improve pumping capacity at the Tehama-Colusa Canal and $40 million for planning and pre-construction work to raise Shasta Dam. 

White House Releases AI Policy Framework

Last week, the White House released a national artificial intelligence (AI) policy framework that calls for broad federal preemption of certain state AI laws, signaling a potential shift that could limit California’s ability to regulate AI development and deployment. The proposal emphasizes a light-touch regulatory approach, opposes the creation of a new federal oversight body, and seeks to reduce liability for AI companies while promoting innovation through tools like regulatory “sandboxes” and expanded access to federal data. 

The framework outlines seven priority areas for congressional action, including child safety, community and small business impacts, intellectual property, workforce development, and protections against AI-enabled fraud and deepfakes. Of particular relevance for counties, the proposal calls for streamlining permitting for data centers – potentially including on-site energy generation – which could have direct land use, zoning, and infrastructure implications at the local level.