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Washington Update | June 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.

June 16, 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. The 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:

Disability community resources include:

House Appropriations Advances Fiscal Year 2027 Labor-HHS-Education Funding Bill

On June 5, the House Appropriations Labor, Health and Human Services, and Education (LHHS) Subcommittee marked up its version of the FY27 Labor, Health and Human Services, Education, and Related Agencies appropriations bill (LHHS bill). The legislation was marked up by the full committee and advanced out of committee on June 9. This bill funds many federal programs important to people with disabilities.

The proposal includes continued funding for biomedical research at the National Institutes of Health (NIH), mental health and substance use programs, rural health initiatives, and public health preparedness efforts. The bill also includes funding increases for the 988 Suicide & Crisis Lifeline and certain workforce development programs. U.S. Department of Education (DOE) and U.S. Department of Health and Human Services (HHS) relevant program funding is broken down below:

U.S. Department of Education FY 27 House Funding

  • $70.7 billion in discretionary funding, an $8 billion (10%) decrease from FY 26 enacted levels
  • $16.5 billion for Title I Grants to Local Educational Agencies, a decrease of $1.9 billion below FY 2026
  • $15.5 billion for special education, an increase of $46 million from FY 26
  • $4.8 billion for rehabilitation services
  • Increase to $10 million of the so-called Paperwork Reduction TA that allows states to waive IDEA requirements
  • Eliminates language that contradicts prohibitions on ED moving programs
  • Eliminates funding for Adult Education ($729 million)

U.S. Department of Health and Human Services FY 27 House Funding

  • $110.8 billion in discretionary funding, a decrease of $4 billion (4%) from FY 2026 levels
  • $7.6 billion for Health Resources and Services Administration (HRSA), a decrease of $440 million below the 2026 level, excluding Community Project Funding/Congressionally Directed Spending projects included in the 2026 enacted bill or the 2027 House bill including:
    • Elimination of funding for Title X Family Planning, a cut of $286 million below FY 26
    • $1.9 billion for the Health Centers program, equal to the 2026 level
    • $1.4 billion for Health Workforce training, an increase of $25 million above FY 26
    • $1.1 billion for Maternal and Child Health programs, a decrease of $121 million below FY 26 level (including elimination of funding for the Healthy Start program)
    • $2.3 billion for the Ryan White HIV/AIDS program, a decrease of $225 million below FY 26
  • $4.1 billion funding for the Centers for Medicare and Medicaid Services (equal to FY 26 funding)
  • $7.6 billion for the Substance Abuse and Mental Health Services Administration (SAMHSA) including:
    • $2.8 billion for mental health services
    • $4.2 billion for substance use treatment services
    • $402 million for substance use prevention services
  • $2.5 billion for the Administration for Community Living (ACL)
  • $31.1 billion for the Administration for Children and Families, including:
    • $8.8 billion for the Child Care and Development Block Grant, an increase of $10 million above FY 26
    • $12.4 billion for Head Start, an increase of $10 million above FY 26
    • Elimination of funding for Preschool Development Grants ($315 million cut)
  • $1.4 billion in funding for primary health care, which supports community health centers that provide affordable, accessible, and high-quality health care in underserved communities
  • $199 million for developmental disabilities, disabilities and health
    • Of which $45 million will be directed for the Office for the Advancement of Telehealth (grants, contracts and cooperative agreements to fund telehealth activities)
  • $12.37 billion for the Head Start program
  • Proposed elimination of the Preventative Health and Health Services Block Grant ($160 million)

It is important to note that all proposed funding levels listed above are not final. The Senate will release their own Appropriations funding in the coming months.

Senators Release Letter Aimed at Addressing Path to Long Term Services and Supports

Late last month, 17 Democratic Senators released a new “Dear Colleague” letter aimed at reforming long term care in the United States. The framework is built on the following three principles:

  1. Making home care affordable and accessible
  2. Improving the quality of care in nursing homes
  3. Strengthening the long-term care workforce

The effort is being led by Senator Ron Wyden, Ranking Member of the Senate Finance Committee. It is very important to note that this potential program would not be a public long-term care insurance model because of hesitation to create a new federal program to address the issue.

The following is a list of supporters: Senators Ben Ray Luján, D-N.M.; Tammy Duckworth, D-Ill.; Angela Alsobrooks, D-Md.; Tim Kaine, D-Va.; Angus King, I-Maine; Andy Kim, D-N.J.; Richard Blumenthal, D-Conn.; Cory Booker, D-N.J.; Elizabeth Warren, D-Mass.; Mazie Hirono, D-Hawaii; Chris Murphy, D-Conn.; Jeanne Shaheen, D-N.H.; Sheldon Whitehouse, D-R.I.; Kirsten Gillibrand, D-N.Y.; Lisa Blunt Rochester, D-Del.; and Jeff Merkley, D-Ore.

The Finance Committee’s Democratic staff will host office hours through July 29 for initial feedback on the Ranking Member’s “Dear Colleague” letter focused on long-term care (LTC) reforms. Office hours will be held on Tuesdays from 3:00 – 4:00 PM ET and Wednesdays from 1:00 – 4:00 PM ET.

On the Horizon

George Washington University and Partners Launch Home and Community Based Services Tracker

This summer, George Washington University, along with HSRI, ATI Advisory, and the UMass Boston LTSS Center, launched the Home and Community Based Services (HCBS) Impacts Tracker Project. The tracker looks at how states across the country are implementing policy changes in their HCBS systems and the impacts of those changes on people with disabilities and older adults. The project includes outcomes that have been proposed and/or enacted from H.R. 1, the One Big Beautiful Bill Act (OBBBA), passed in 2025.

TASH Advocacy Letters

  • TASH, as a part of the CCD Education Task Force, submitted comments to the U.S. Department of Education opposing proposed changes that would reduce accountability and reporting requirements under IDEA’s State Performance Plan and Annual Performance Report system.
  • TASH, as a part of the CCD Education Task Force, submitted comments to the U.S. Department of Education regarding proposed changes to IDEA Part C reporting requirements for early intervention services.

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.