Reps. Thompson, Gallagher Introduce Bipartisan Bill to Strengthen Rural Communities 

Representatives Mike Thompson (D-CA) and James Gallagher (R-CA) recently introduced bipartisan legislation – the Revitalize Rural America Act (H.R. 10508) – that aims to address some of the challenges facing rural communities, including healthcare access, workforce shortages, housing affordability, and limited access to federal resources. 

The bill would expand technical assistance to help rural governments navigate federal grant and loan programs, making it easier for smaller communities with limited staff and resources to pursue funding for infrastructure and other local priorities. It would also help counties recruit and retain essential workers through student loan forgiveness and federal tax relief for rural public employees in fields such as public safety, engineering, planning, permitting, and public health. 

The legislation also includes provisions to support rural hospitals and healthcare access, including making certain Medicare telehealth flexibilities permanent, encouraging physicians to practice in medically underserved communities, and creating a tax credit to help rural hospitals retain employees. 

Of particular interest to California counties dealing with rising homeowners insurance costs, the bill would expand federal support for home hardening and disaster mitigation. It would provide grants, tax credits, and technical assistance to help homeowners and businesses make their properties more resilient to wildfires and other disasters, with the goal of reducing insurance costs and improving coverage availability. It would also exempt qualifying state hazard mitigation payments from federal income taxes, allowing homeowners to receive assistance for wildfire-resistant improvements without facing an additional federal tax burden. 

Other provisions would expand eligibility for rural housing tax credits, support small rural law enforcement agencies, and provide tax relief for qualifying farmland sales to beginning farmers and family members. 

The bill has been referred to several House committees for consideration. 

Democratic Policy Blueprint Addresses Wildfire Resilience and Rising Homeowners Insurance 

The Sustainable Energy and Environment Coalition (SEEC) Institute recently released its Thriving Economy Project, a comprehensive policy blueprint developed by a group of House Democrats and policy experts. The report includes more than 800 federal policy recommendations covering economic growth, energy affordability, infrastructure, rural communities, and disaster resilience. 

Similar in concept to the policy planning undertaken by conservatives through Project 2025, the effort is intended to help shape a future policy agenda, particularly if Democrats regain control of one or both chambers of Congress next year. Unlike Project 2025, which was designed to prepare for a new presidential administration, the Thriving Economy Project focuses on legislative proposals that could be pursued in the next Congress, including under divided government. 

Several recommendations are particularly relevant to California counties, including expanded federal assistance for wildfire resilience, home hardening, disaster mitigation, and critical infrastructure improvements. 

The report also directly addresses the growing homeowners insurance affordability crisis. Among its proposals are a refundable federal tax credit for home-hardening improvements, exempting state and local hazard mitigation grants from federal income taxes, and requiring insurers to recognize verified mitigation measures, such as defensible space and certified home improvements, when setting premiums. It also proposes targeted premium assistance for lower-income households, greater transparency around insurance rates and nonrenewals, and additional federal financing to help homeowners and communities reduce disaster risk. 

While these recommendations would require additional federal action, they provide an indication of the issues and policy approaches that could receive greater attention in the next Congress. 

Nonprofits Renew Legal Challenge to Homelessness Funding Changes 

Following an appeals court victory on September 16, the U.S. Department of Housing and Urban Development (HUD) quickly moved to reissue the FY 2026 Continuum of Care (CoC) funding competition. However, the coalition of states and nonprofits seeking to overturn the agency’s proposed changes to the federal homelessness program quickly filed an emergency motion to seek expedited relief, urging the courts to rule on the merits of the proposed changes before funding goes out the door. 

Under the FY 2026 competition, HUD would shift roughly $1.3 billion away from Permanent Supportive Housing (PSH) and toward transitional housing, supportive services-only projects, “treatment first” housing, and programs that place greater emphasis on coordination with law enforcement and first responders. According to the National Alliance to End Homelessness, approximately 15,000 Californians could lose access to permanent supportive housing under the FY 2026 funding notice. 

The plaintiffs in question had challenged the changes in August. A federal district court found that HUD had not gone through the required public notice-and-comment process before making such significant changes and vacated the funding notice. The September 16 appeals court ruling put that decision on hold while HUD’s appeal moves forward, finding that the agency is likely to succeed on its argument that the changes did not require that process. Now, those challenging the NOFO are asking the Appeals court to direct the district court to consider their other, substantive arguments against the funding competition or to do so itself on an expedited basis. The ongoing legal battle creates ongoing uncertainty for CoCs as the December 1 deadline for HUD to award this year’s funds quickly approaches.  

Before the appeals court acted, HUD had already published a notice in the Federal Register seeking public comment on the proposed changes, suggesting the agency was preparing to revise and reissue the funding notice in response to the lower court ruling. Counties are still encouraged to comment on HUD’s proposal by the deadline of October 13, 2026. 

House Panel Examines Bill to Combat Golden Mussel Infestation 

Last week, the House Natural Resources Subcommittee on Water, Wildlife, and Fisheries held a hearing on the Golden Mussel Eradication and Control Act (H.R. 3717), which is led by Representative Josh Harder (D-CA). The legislation would establish a federal program to help prevent the spread of invasive golden mussels. During the hearing, the U.S. Fish and Wildlife Service expressed support for the bill’s goals. 

Golden mussels pose a significant threat to California’s water infrastructure, agriculture, and recreational waterways. They can clog water intakes, pipelines, and other infrastructure, increasing maintenance costs and potentially disrupting water deliveries. Their spread has also prompted new boating restrictions and inspection requirements at reservoirs and other recreational facilities. 

Specifically, the bill would authorize $15 million annually through FY 2030 for prevention, monitoring, control, eradication, and research efforts. It would establish a competitive grant program open to state and local agencies to develop and test technologies for removing golden mussels from water infrastructure and waterways. The legislation would also support early detection, watercraft inspection programs, and technical assistance for local governments and water agencies.