Federal Update: President’s Budget Outline, FEMA Reform and More

Here’s the latest from Washington, DC this week from our partners at Paragon Government Relations.

President Trump Releases FY 2026 Budget Outline

On May 2, President Trump unveiled a high-level budget proposal for fiscal year 2026, calling for approximately $163 billion in discretionary funding cuts to federal education, health, housing, and labor programs (a 22 percent reduction). At the same time, the budget blueprint calls for boosting spending on defense and border security programs. The so-called “skinny budget” provides a snapshot of the administration’s fiscal priorities for fiscal year 2026 and will likely be followed by a full budget request in the coming weeks or months.

With regard to the U.S. Department of Health and Human Services, the administration’s budget calls for a 26 percent cut in discretionary funding, including the elimination of the Low-Income Home Energy Assistance Program (LIHEAP), Community Services Block Grants (CSBG), Preschool Development Block Grants, teen pregnancy prevention programming, and more. The proposal also calls for deep cuts aligned with the ongoing reorganization and consolidations within the agency, including reductions to domestic HIV programs, multiple Maternal and Child Health programs, the elimination of multiple Health Workforce Programs, and a nearly 50 percent ($3.6 billion) cut from the Centers for Disease Control. The proposal seeks a nearly $18 billion reduction from the National Institutes for Health (NIH),as well as a $675 million cut from the Centers for Medicaid and Medicare Services (CMS) through the elimination of health equity-focused activities and Inflation Reduction Act-related outreach.

President Trump’s proposed budget also would cut funding for the Department of Housing and Urban Development by $32.9 billion, or more than 40 percent, from current levels. Moreover, the administration proposes to reduce rental assistance programs by $26.7 billion while imposing a new two-year cap on rental aid for “able-bodied adults.” In addition, the budget calls for the elimination of the Community Development Block Grant and the HOME program, while significantly cutting Homelessness Assistance Grants. Further cuts to food banks would come from the elimination of the Commodity Supplemental Food Program, which supports food assistance for seniors. The administration proposes to replace this program with so-called “Make America Healthy Again” food boxes. 

Additionally, the budget proposal takes aim at $646 million in Federal Emergency Management Agency (FEMA) grant programs, such the National Domestic Preparedness Consortium and FEMA’s Preparedness Grants Portfolio. Notably, mandatory spending programs – including Medicaid, the Supplemental Nutrition Assistance Program (SNAP), Temporary Assistance for Needy Families (TANF), and the Social Services Block Grant (SSBG) – are not addressed in the president’s proposal.

Looking ahead, congressional appropriators will begin the process of crafting the 12 fiscal year 2026 spending measures that comprise the federal budget. It remains to be seen which elements of the Trump administration’s budget outline will survive the appropriations process.

On a separate, though related budgetary matter, House Republicans this week continued intra-party negotiations over how to pay for President Trump’s sweeping domestic policy priorities as part of a so-called “budget reconciliation” measure. While several House committees recently advanced their respective titles of the tax and spending bill, the panels that are tasked with identifying some of the most controversial spending reductions that would be used to offset a ten-year package of tax cuts have postponed their markups until next week.

Looking ahead, the House Agriculture, Energy and Commerce, and Ways and Means Committees will all begin their markups next Tuesday. Notably, the House Agriculture Committee reportedly plans to insert an additional $60 billion in Farm Bill provisions to its portion of the reconciliation package, placing additional pressure on lawmakers to find even greater cuts to SNAP. For its part, the House Ways and Means Committee continues to haggle over the cap on State and Local Tax Deductions (SALT), among other issues. Additionally, it remains unclear how congressional Republicans plan to address cuts to Medicaid as part of the Energy and Commerce Committee’s markup.

House Lawmakers Reintroduce Farm Workforce Modernization Act

This week, a bipartisan group of lawmakers – led by Representative Zoe Lofgren (D-CA) –reintroduced legislation that seeks to stabilize the agricultural sector of the U.S. economy. Known as the Farm Workforce Modernization Act, the legislation would allow migrant farm workers to apply for temporary “certified agricultural worker” status and earn permanent legal status for themselves and their dependent family members through continued agricultural employment.

The FWMA, of which CSAC has long been a proponent, also would streamline and reform the visa process for the H-2A temporary guest worker program, including allowing a limited number of program participants to engage in year-round agricultural work. Additionally, the legislation would require the U.S. Department of Homeland Security to establish a nationwide system for employers to verify an individual’s identity and employment authorization (known as E-Verify). Employers hiring individuals for agricultural employment would be required to use the new system. Additional information on the bill, including a two-page summary, can be accessed here.

In addition to Representative Lofgren, original cosponsors of the FWMA include Representatives Dan Newhouse (R-WA), Mike Simpson (R-ID), Jim Costa (D-CA), David Valadao (R-CA), and Adam Gray (D-CA).

While the FWMA has cleared the House of Representatives in previous Congresses, the bill has failed to gain sufficient traction in the Senate. The bill’s reintroduction in the lower chamber comes as momentum builds within the Trump administration to explore options to shore up the country’s agricultural workforce by reforming the H-2A visa program.

T&I Committee Leaders Unveil Significant FEMA Reform Proposal

Earlier today, House Transportation and Infrastructure Committee Chairman Sam Graves (R-MO) and Ranking Member Rick Larsen (D-WA) unveiled a draft bill that would significantly reform FEMA. The discussion draft, entitled theFixing Emergency Management for Americans (FEMA) Act of 2025, aims to streamline disaster response and recovery, reduce bureaucratic delays, and empower state and local governments to take a more active role in emergency management.

One of the bill’s cornerstone provisions is the restoration of FEMA’s status as a Cabinet-level agency, making it directly accountable to the president. This move is intended to streamline decision-making, enhance disaster response coordination, and restore FEMA to a more prominent role in federal emergency management. It should be noted that a similar stand-alone bill (S. 1246) was recently introduced by Senators Alex Padilla (D-CA) and Thom Tillis (R-NC) with the same goal of elevating FEMA’s status within the executive branch.

To reduce red tape and accelerate recovery efforts, the bill would replace the current reimbursement process with more streamlined, project-based grants, allowing states to set their own recovery priorities. The draft also includes financial incentives for states to invest in disaster resilience and preparedness,

In addition, the legislation seeks to simplify the process for disaster survivors by requiring a single, streamlined application and clearer, more accessible communication from FEMA. This change is intended to reduce the paperwork burden, eliminate confusion, and speed up aid distribution. States would also be given more flexibility to determine the most appropriate emergency housing solutions for each disaster, allowing them to tailor responses to local conditions.

Of particular interest to smaller communities, the bill urges FEMA to give greater weight to events that damage economically distressed or rural areas when deciding whether to recommend a presidential disaster declaration

To improve transparency and accountability, the bill would establish a Recovery Task Force, which would be charged with closing out long-standing disaster declarations. It also would prohibit political bias in the distribution of disaster funding, mandate comprehensive reviews of FEMA regulations to eliminate outdated and conflicting policies, and direct FEMA to simplify its communications with disaster survivors to reduce confusion and speed recovery.

Chairman Graves and Ranking Member Larsen are actively seeking input from members of Congress, emergency management stakeholders, and local governments to refine the proposal before it is formally introduced.

Senate Panel Hears From USFS on the Fix Our Forests Act

Earlier this week, the Senate Agriculture Committee held a legislative hearing on the Fix Our Forests Act (FOFA; S. 1462), a comprehensive, bipartisan proposal aimed at addressing the nation’s escalating wildfire crisis. The bill – which was recently introduced by Senators Alex Padilla (D-CA), John Curtis (R-UT), John Hickenlooper (D-CO), and Tim Sheehy (R-MT) – serves as the Senate companion to the House-passed version (H.R. 471). It reflects months of bipartisan negotiations and growing national consensus around the need to accelerate hazardous fuels reduction projects, streamline environmental review processes, and strengthen federal, state, tribal, and local coordination in forest and rangeland management.

For his part, Committee Chairman John Boozman (R-AR) praised the bill’s sponsors for their bipartisan approach, emphasizing the need for innovative solutions to address catastrophic wildfire risk. He highlighted FOFA’s key provisions, including enhanced public-private partnership authorities, expedited project approvals, and support for innovative forestry practices. Boozman also expressed optimism that the committee would advance the legislation in the coming months.

However, Ranking Member Amy Klobuchar (D-MN) raised concerns about the U.S. Forest Service’s (USFS) capacity to implement the bill, citing severe workforce reductions and budget cuts. She noted that over 4,000 USFS employees have been dismissed since January, creating critical staffing shortages that could undermine the agency’s ability to meet wildfire mitigation goals. Chris French, Acting Associate Chief of the USFS, echoed the need for reforms but expressed concerns about a specific provision requiring evaluation of container aerial firefighting systems (CAFFS), citing operational and safety challenges.

While FOFA has bipartisan support and significant momentum, key differences between the House and Senate versions, particularly around litigation reform and environmental safeguards, will need to be resolved before a final package can advance.

Senate Lawmakers Introduce Bipartisan Bill to Extend and Expand Public Lands Maintenance Program

Last week, Senators Steve Daines (R-MT) and Angus King (I-ME) introduced bipartisan legislation – the America the Beautiful Act (S. 1547) – that would reauthorize and expand the Legacy Restoration Fund (LRF), a key program created under the 2020 Great American Outdoors Act (GAOA). The bill would increase annual funding for the LRF from $1.9 billion to $2 billion and extend the program through 2033.

The Fund, which is set to expire in September, plays a critical role in addressing the mounting backlog of deferred maintenance across federal public lands. These resources support repairs and upgrades to roads, trails, bridges, visitor facilities, and employee housing in national parks, forests, wildlife refuges, and other public lands. In addition, S. 1547 would require federal land management agencies to maintain a two-year rolling list of deferred maintenance projects, allowing them to initiate projects for the upcoming year even under a continuing resolution. The legislation also would ensure that all U.S. Fish and Wildlife Service lands are eligible for funding, expanding the program’s reach to additional conservation areas.

The bill’s introduction comes amid broader partisan debates over public lands policy, including proposals under the House GOP’s budget reconciliation plan that could authorize the sale of certain federal lands to reduce the deficit. While the America the Beautiful Act has garnered bipartisan support, it could face opposition from Senate Energy and Natural Resources Committee Chairman Mike Lee (R-UT), who was a vocal critic of the original GAOA. Nonetheless, the measure is likely to resonate with lawmakers from both parties who have championed outdoor recreation, economic development, and conservation efforts in their states.

Senate Panel Clears Measure to Reauthorize the National Earthquake Hazards Reduction Program (NEHRP)

Last week, the Senate Commerce Committee advanced bipartisan legislation (S. 320) – sponsored by Senators Alex Padilla (D-CA) and Lisa Murkowski (R-AK) – to reauthorize the National Earthquake Hazards Reduction Program (NEHRP) through Fiscal Year 2028. The bill would continue funding for the four lead federal agencies (FEMA, the National Institute of Standards and Technology (NIST), the National Science Foundation (NSF), and the U.S. Geological Survey (USGS) – and supports key initiatives such as the ShakeAlert Early Warning System, seismic research, and resilience planning. S. 320 also includes new provisions directing local inventories of high-risk buildings, expanding the scope of seismic hazards to include tsunamis, and increasing support for tribal governments.

BOEM Launches Public Comment Period on New Offshore Oil and Gas Leasing Program

Last week, the Bureau of Ocean Energy Management (BOEM) formally began the process of developing the 11th National Outer Continental Shelf (OCS) Oil and Gas Leasing Program. A Request for Information (RFI) published in the Federal Register on April 30, 2025, launched a 45-day public comment period, which will remain open through June 16, 2025. This is the first step in a multi-year planning process to replace the current 2024–2029 leasing program.

Specifically, the RFI invites public and stakeholder input on all 27 OCS planning areas, including those off California’s coast. While BOEM has not explicitly stated whether this process is aimed at expanding leasing in currently protected areas, statements accompanying the announcement point to broader federal energy policy priorities under the current administration.

In particular, the public comment notice references President Trump’s Executive Order 14154 titled Unleashing American Energy, which wassigned on his first day in office. That order, along with a directive from Secretary of the Interior Doug Burgum, emphasizes the importance of increasing domestic energy production and encourages the exploration of energy resources on federal lands and waters. These policy signals suggest that the administration may be considering the potential for new leasing activity in areas that were previously off-limits, including waters off the California coast.