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Washington Update | July 2026

Posted on by Donald Taylor

The TASH Washington Update logo. A black and white image of the U.S. Capitol building with the TASH Möbius strip behind it.

July 15, 2026

Administration and Capitol Hill Updates

Centers for Medicaid and Medicare Services Releases Interim Final Rule on Medicaid Work Requirements

On June 1, 2026, the Centers for Medicare and Medicaid Services (CMS) issued an Interim Final Rule (IFR), which provides guidance to states on implementing new Medicaid community engagement and work requirements. While we reported on this topic last month, we want to continue to provide relevant information and tools to our stakeholders.

As you may know, the work requirements will be enacted as part of H.R. 1 (The Big Beautiful Bill Act), the 2025 budget reconciliation bill that included significant changes to the Medicaid program. Specifically, the rule will implement a new statutory requirement for certain adults in Medicaid to meet an 80 hours per month work requirement (referred to as work, training, school or volunteering) as a condition of eligibility.

  • This work requirement applies to: non-pregnant adults between the ages of 19 and 64 who are not entitled to or enrolled in Medicare and are eligible for or enrolled in the Medicaid adult group or in certain section 1115 demonstrations that provide minimum essential coverage to adult beneficiaries.
  • Those who are exempt include: individuals who are pregnant or in a postpartum period, disabled or medically frail, parents and caretakers of children under 14 years of age or people with disabilities, American Indians and Alaska Natives, and certain others.

To date, 43 states and the District of Columbia provide coverage to these populations and will be required to implement the new requirement.

The IFR includes a more restrictive definition of “medical frailty,” and it is expected that this could lead to challenges for states to implement and could lead to more people falling through the cracks and losing coverage. In addition to the strain on vulnerable populations, states are expected to spend anywhere between $4 and $30 million to implement the regulations by January 1, 2027. Beneficiaries will be required to submit documentation beginning in 2028.

Public comments to the rule are due on July 31. TASH is working with advocacy partners to develop resources and talking points to help self-advocates, families, and allies understand the proposal and participate in the public comment process.

Find resources below:

 

  • Public comments to the rule are due on July 31.
  • Interested in submitting comments? Click here to find a visual support.
U.S. Department of Justice Releases Memorandum on Olmstead, Reinterprets Section 504 and the Americans with Disabilities Act

On June 18, the U.S. Department of Justice (DOJ) released a Memorandum titled, “Application of the Rehabilitation Act and Americans with Disabilities Act to State Institutionalization of Patients with Severe Mental Illness or Disabilities.” The core argument of the memo is that the Supreme Court’s Olmstead v. L.C. decision only prohibits unjustified institutional isolation, but does not definitively require states to provide care in the “most integrated setting appropriate.” While the memo does not legally overturn Olmstead, the ADA, or Section 504, we believe it is possible that the new interpretation of Olmstead may greatly hinder the ability for the individuals we serve to live in home and community-based settings across the lifespan.

In response to the memo, Congressional Democrats introduced resolution on Thursday calling for the DOJ to rescind the memo. Introduced by Senator Duckworth, (IL), the resolution also includes Senators Durbin (IL), Sanders (VT), Wyden (D-OR), Gillibrand (NY), Murray (WA), Blumenthal (CT), Van Hollen (MD), Markey (MA), Bennet (CO), Luján (NM), Kim (NJ), Hassan (NH) and Blunt Rochester (DE). Several state governors have also publicly pushed back, stating they will continue to prioritize community living.

TASH will continue to follow this issue as it is a major development for the individuals we care about. We will work with our partners as this issue continues to evolve, and provide updates and information.

OSERS Briefing Addresses Transfer of Special Education Programs to HHS

On July 9, the U.S. Department of Education’s Office of Special Education and Rehabilitative Services (OSERS) hosted a briefing to discuss an interagency agreement (IAA) that proposes to transfer several special education programs and functions to the Department of Health and Human Services (HHS).

During the briefing, federal officials emphasized that the Individuals with Disabilities Education Act (IDEA) remains unchanged and will continue to be administered as federal education law. The Department of Education stated that it will continue to retain legal responsibility for IDEA oversight and enforcement, despite the transfer of programs and personnel to HHS. Education officials on the call indicated that the reorganization is not expected to alter day-to-day staff responsibilities, affect procedural safeguards, and protections available to students with disabilities and their families.

However, disability rights and education advocacy organizations continue to express concerns about the administrative separation of special education functions across two federal agencies. Advocates warn that dividing responsibilities between the Department of Education and HHS could create challenges related to monitoring, accountability, coordination, and the delivery of guidance and support to families.

On the Horizon

U.S. Department of Health and Human Services to Host Webinar: Fundamentals of the Working Families Tax Cut Legislation Section 1915(c)(11) Home and Community-Based Services Waiver Authority

On July 22, the U.S. Department of Health and Human Services (HHS) will hold a webinar on the fundamentals of the working families tax cut legislation, Section 1915 (c)(11) HCBS waiver authority. This webinar will provide states with the following:

  • An overview of the 1915(c)(11) Home and Community-Based Services (HCBS) waiver;
  • Conditions for waiver approval and ongoing requirements;
  • Considerations for 1915(c)(11) waiver design;
  • 1915(c)(11) parallels and new opportunities; and
  • Comparison of 1915(c)(11) to other related HCBS authorities.

After the presentation, participants will be able to ask questions. Register for the webinar on July 22 from 1:30-3 PM ET.

TASH Policy Work

TASH Statement on Vouchers
TASH Advocacy Letters
  • Advocacy Groups Urge Congress to Protect and Reinvest in Medicaid
    This letter, signed by TASH and other disability and advocacy organizations, urges Congress to reject further Medicaid cuts and instead reinvest in the program. The letter argues that recent funding reductions are already harming access to health care and home- and community-based services (HCBS) for older adults, people with disabilities, caregivers, and low-income families. The signatories warn that additional cuts would worsen provider closures, workforce shortages, and service reductions, threatening the health, independence, and ability of millions of Americans to remain in their homes and communities.
  • Advocacy Groups Urge Congress to Reject Education Department Reorganization
    This letter, signed by TASH and other disability, civil rights, and education organizations writes to oppose the Administration’s plan to transfer key special education and civil rights functions from the U.S. Department of Education to the Departments of Health and Human Services and Justice, arguing that the move would weaken protections and services for students with disabilities. The stakeholder letter urges Congress to reject the transfers, stating that decades of federal laws and programs were intentionally designed to keep education, disability rights, and civil rights oversight together within the Department of Education.
  • Disability Advocates Urge DOJ to Reverse Delay of Web Accessibility Standards
    This letter, signed by TASH and other disability rights organizations urges the Department of Justice (DOJ) to rescind its decision to delay the compliance deadlines for web and mobile accessibility requirements for state and local governments for one year. The delay will prolong barriers that prevent people with disabilities from accessing essential government services online and undermine years of progress toward digital accessibility.
TASH’s Tenth Annual Outstanding Leadership in Disability Law Symposium and Award Celebration

the Outstanding Leadership in Disability Law Symposium and Award Celebration logoTASH’s 2026 Outstanding Leadership in Disability Law Symposium and Award Celebration will be held at the American University Washington College of Law in Washington, DC on Tuesday, July 21, 2026. This event will consist of a half-day legal symposium followed by an award celebration honoring Frank Laski for his exceptional leadership in disability law.

Symposium panels will discuss:

  1. Preserving Community Living – The Future of 504
  2. Preparing For A Changed Special Education Landscape
  3. Addressing Disability Discrimination Across Systems

Registration is currently open. You can attend the Symposium in-person or remotely. Continuing Legal Education (CLE) credits are available.

Washington Update logo image credit: Romain Pontida, Creative Commons, Attribution-ShareAlike 2.0 Generic, some modifications.