An update from Washington, DC
- Marilyn Carter
- Mar 8
- 4 min read
Today we mark International Women's Day, and as we began Women's History Month last Saturday, I was honored to attend the National Association of Counties (NACo) Legislative Conference in the nation's capital, together with Commissioner Jean Hamilton.
Areas of common concern were raised by county leaders around potential changes in the federal budget - changes that would have major impact on women, families and EVERYONE. Here's a Q&A recap:
What issues were front and center?
In this environment of rapid-fire change at the federal and state levels, it is the residents of our Counties that feel change the most, and County governments across the U.S. are deeply concerned - whether they be red or blue.
(Notably - North Carolina had a strong presence throughout the conference through the NC Association of County Commissioners).
Details, please...what changes?
In a meeting with our state's U.S. Senators, dozens of NC County Commissioners brought questions about what will happen in the ongoing federal budget discussions. At least four areas of common concern were raised around the impacts of these potential changes:
Cuts to benefits made possible by the Affordable Care Act and Medicaid Expansion
There are reports that significant cuts to Medicaid are under consideration, including elimination of the 90% Federal Match Rate that is given to states who have expanded Medicaid.
Orange County has added over 4600 enrollees to the expanded Medicaid program since it was adopted by the Legislature on Dec. 1, 2023. North Carolina is one of nine states with a statute (aka "trigger law") that requires termination of the expansion if the share of federal funding drops below 90%.
Cuts to programs that support Families - SNAP, TANF and more
The Supplemental Nutrition Assistance Program (SNAP), Temporary Assistance for Needy Families (TANF) and Child Protective Services are crucial elements in programs supporting Orange County families.
Elimination or Reform of the Federal Emergency Management Agency (FEMA)
There is broad bipartisan, County-level consensus that reform is needed in the way FEMA operates - AND that eliminating FEMA would have major consequences on our ability to respond to disasters.
County governments are on the ground and deliver emergency management and other services during disaster response. Counties are requesting that they have representation on a new FEMA Review Council - to ensure that as changes are considered, there is a seat at the table for local government.
Changes impacting County offerings of municipal bonds
Currently, purchasers of municipal bonds receive a Federal tax exemption on interest received. There have been discussions on removing this exemption, among other changes in the tax code, in order to generate revenue that would offset $4.5 Trillion needed to extend the 2017 Federal tax cuts.
Removing this exemption would have significant impact to any county with outstanding bond debt and/or new bonds to be issued - including school bonds.
The effect is projected to be an increase in the interest rate percentage - by over 2%. In Orange County, this translates to an impact of over $120M on our current and future bonds.
What's next?
At the Federal level, there are two budget processes underway:
For the current fiscal year, the budget must be resolved by March 14 to avoid a Government shutdown. In the recent past, this has been done through a series of Continuing Resolutions due to stalemates in the regular budget process.
For next fiscal year (beginning October 1, 2025), a process called "Reconciliation" is being used by the majority in Congress, which is enabled by the fact that both houses of Congress and the White House are held by one party. Under these conditions, it is possible to avoid a 60-vote requirement in the Senate and pass a budget there with a simple majority vote.
Orange County Commissioners and Staff are monitoring the landscape and potential exposures to our residents, though the targets are moving and details are sparse.
What can we do?
I am grateful for an opportunity to meet with Congresswoman Valerie Foushee in her office on Tuesday together with Commissioner Jean Hamilton, who also attended the conference. Our Congresswoman encouraged us to rapidly assess potential impacts and all of us to reach out to our federal representatives to tell our stories.
If you live in Orange County, you already know that Congresswoman Foushee and our representatives in the NCGA are working hard for our residents.
This is the moment to share your stories with your elected officials and to ask our Senators to fully assess the impact of changes under consideration - BEFORE they are made.
More to come,
Orange County Commissioner and
Representative to the National Association of Counties (NACo)
At the NACo Conference:
Commissioner Jean Hamilton and I shared the 10-year story of the "Stepping Up" initiative in Orange County (more about this initiative to come in a separate update).
On Capitol Hill:
We joined the NC Association of County Commissioners (NCACC) in a meeting with our U.S. Senators, where the Commissioners asked about the budget process and priorities, including Medicaid expansion, SNAP/TANF, FEMA and Municipal Bonds tax policy.
