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NCSL Updates
State-Federal Webinars to Watch
In case you were not able to join the livestream, don’t miss watching the recordings of several informative webinars. Topics include the farm bill, what states need to know about Summer EBT, cryptocurrency demystified, data centers, and more.
Congressional Updates
Final Stopgap Spending Bill Includes Extension of Farm Bill and Disaster Aid
Congress completed a last-minute appropriations bill that provides government funding into March. With funding of the government ending at midnight, the House passed legislation late Friday evening, with the Senate agreeing to the measure just shortly after midnight. President Biden signed the bill Saturday morning, averting any damage of a prolonged shutdown. The measure also includes other provisions Congress wished to address before adjourning, including a one-year extension of the farm bill, $100 billion for disaster aid and $10 billion for economic assistance to farmers and extension of telehealth flexibilities in Medicare. More controversial measures in earlier bills were excluded, such as a debt ceiling extension and reforms to pharmacy benefits managers.
The passage of the spending bill ends a contentious process that saw several House GOP-led efforts fail before a right combination of policies provided for comfortable margins of passage. This included last-minute intervention of President-elect Trump mandating GOP legislators renegotiate an established agreement to include a debt-ceiling raise that still ultimately failed as support did not materialize for a two-year debt suspension.
The incoming Congress will face funding the remaining six months of fiscal year 2025 while also seeking to implement Trump’s agenda, such as federal tax legislation and government spending cuts while also facing a debt ceiling debate as the current suspension will end on Jan. 1.
Senate Passes Social Security Fairness Act
The Senate passed the Social Security Fairness Act over the weekend with a vote of 76-20 that ends the Windfall Elimination Provision, and the Government Pension Offset, ensuring that all Social Security benefits are calculated using the same formula, regardless of other pensions. This change increases benefits for many public employees and their families. These provisions had reduced Social Security benefits for individuals who receive pensions from jobs that did not pay into the Social Security system.
- Windfall Elimination Provision: Reduced Social Security benefits for individuals who also receive a pension from non-covered employment, e.g., certain state or local government jobs.
- Government Pension Offset: Reduced Social Security spousal and survivor benefits for individuals who receive a government pension.
The House had passed the measure in early November with a vote of 327-75. Opponents of the bill wanted comprehensive social security reform before providing more benefits and pointed to the increased costs of $196 presented by the legislation over the next decade. Opponents say this added cost only speeds up social security insolvency which was calculated to occur in 2035. President Biden is expected to sign the bill.
President Expected to Sign the EXPLORE Act
Outdoor recreation is a major economic driver in America, generating 5 million jobs in 2023 and 3.1% of all U.S. employees, many of which are in rural areas, during the same time. The EXPLORE Act combines several existing bills with new concepts including improved broadband connectivity at developed recreation sites, online collection of recreation fees, federal collaboration with state, local and tribal governments in identifying and assessing housing, municipal infrastructure and other needs of gateway communities to expand visitation to federal lands and waters, and more.
NCSL’s Natural Resources, Energy and Environment Committee passed a resolution at the 2024 Legislative Summit in support of the act. Read NCSL’s Dec. 16 letter to Senate leadership urging its passage.
Bipartisan Water Resources Act Awaits President Biden’s Signature
The Water Resources Development Act of 2024 has passed Congress and awaits President Biden’s signature to become law. This will be the sixth water resource development package passed on a biennial, bipartisan basis by Congress. WRDA 2024 provides guidance to the U.S. Army Corps of Engineers by authorizing flood control, navigation, ecosystem restoration and water infrastructure projects and programs across the country. This legislation also included a full reauthorization of the Economic Development Administration for the first time in 20 years. NCSL, in a letter with our Big 7 colleagues, advocated for the passage of WRDA 2024 and called for intergovernmental collaboration, maintenance and modernization of our nation’s ports and harbors, and flood mitigation and resilience. NCSL’s Priorities for Remainder of 118th Congress letter released in November, also called for the passage of WRDA 2024.
Congress Passes the Stop Institutional Child Abuse Act
The act, which was approved with overwhelming bipartisan support, will establish a federal work group on youth residential programs to study and implement best practices for the well-being of youth in residential programs. This includes the “health and safety, care, treatment, and placement of youth” in such programs and the training of professionals and paraprofessional at related facilities.
In addition, no later than 45 days after enactment, the U.S. Health and Human Services Department is to contract with the National Academies of Science, Engineering, and Medicine to study and make recommendation on best practices to improve these programs. Areas of concern include identifying “the scope of child abuse, neglect, and deaths in youth residential programs,” consulting with experts in the field and levels of government, coordination among all levels of government and identifying and developing research-based risk assessment tools for the health and safety of youth in residential programs. The National Academies is to issue a report within three years once enacted and two years thereafter over a 10-year period.
President Biden is expected to sign the bill. Read more.
NCSL's Children, Families and Human Services Standing Committee has a resolution supporting this legislation, which can be found here, under the title "Supporting Federal Legislation to Empower States to Protect Children and Youth in Residential Care."
Balancing Innovation and Protection: Key Insights from the House AI Task Force Report
On Dec. 17, 2024, the Bipartisan House Task Force on Artificial Intelligence released a report outlining 66 key findings and 85 recommendations to guide AI policy. The Task Force, co-chaired by Representatives Jay Obernolte (R-Calif.) and Ted Lieu (D-Calif.), collaborated with various experts from numerous sectors to evaluate AI’s potential opportunities and challenges. The report highlights the importance of sustaining United States leadership in AI innovation while maintaining protections to defend civil rights, data privacy, and national security. It also looks at the role of private-sector-led standards in advancing responsible AI development. Recommendations include supporting bipartisan AI research and development, enhancing transparency in AI systems to prevent misuse and investing in education to prepare the workforce for AI integration. In May 2024, the Bipartisan Senate AI Working Group released a report titled “Driving U.S. Innovation in Artificial Intelligence,” which, like the House report, looks at the risks and benefits of AI. Both reports serve as a blueprint for future congressional actions, aiming to balance innovation with necessary protections to ensure AI technologies benefit all Americans.
Administration
USDA Updates SNAP Rules to Align with the Fiscal Responsibility Act of 2023
The USDA announced a rule adjusting SNAP to comply with three provisions of the Fiscal Responsibility Act of 2023. These provisions include language added to the program’s purpose, highlighting assistance to low-income adults in obtaining employment and increasing earnings, updated exceptions from the able-bodied adults without dependents time limit and adjustment to the number of annual discretionary exemptions available to state agencies. The rule also clarifies procedures for state agencies for screening exemptions to time limits and verification requirements.
Veterans, individuals experiencing homelessness and young adults aging out of foster care (age 24 or under and in foster care on their 18th birthday) are exempted from the ABAWD time limit work requirements. State case-by-case discretionary exemptions decrease from 12% to 8% and effective October 2025 states will only be able to roll over unused exemptions from the previous year. This final rule will go into effect Jan. 16, 2025. Additional resource here.
CBPB Finalizes Rule Restricting Bank Overdraft Fees
According to the agency, the final rule on overdraft fees applies to the banks and credit unions with more than $10 billion in assets. The reforms will allow large banks three options to manage their overdraft lending program: “They can choose to charge $5; to offer overdraft as a courtesy by charging a fee that covers no more than costs or losses; or continue to extend profit-generating overdraft loans if they comply with lending laws, including disclosing any applicable interest rate.”
Banks currently charge an average fee of $35 to extend overdraft services. The agency estimates the rule will save consumers $5 billion in fees per year. The rule takes effect Oct. 1, 2025.
The Consumer Bankers Association filed a motion to block the Consumer Financial Protection Bureau's final rule on overdraft fees, arguing the rule is an illegal overreach by the agency. Read more
State Wetlands Authority Update
A final rule has been issued by the Environmental Protection Agency that makes it easier for states and tribes to assume authority for wetland permitting decisions under the Clean Water Act Section 404(g), which are currently largely administered by the U.S. Army Corps of Engineers. The rule, according to the press release, is intended to clarify the program, simplify oversight and increase collaboration between states and the federal government on the Clean Water Act. The rule does not allocate any funding to states should they seek to take over permitting for projects impacting federally protected wetlands in their jurisdiction.
Court Updates
Federal Appeals Court Upholds TikTok Ban
A federal appeals court upheld a recently enacted law that would ban TikTok in the U.S. if its Chinese owner ByteDance does not sell the app by Jan. 19, 2025. TikTok sued to block the law from taking effect, arguing that it infringes on the first amendment’s right to free speech by banning a platform used by more than half the U.S. population. In upholding the Protecting Americans from Foreign Adversary Controlled Applications Act enacted by Congress, the court rejected TikTok’s first amendment argument, concluding that the law served compelling national security interests and was narrowly tailored to achieve those interests.
TikTok has requested the U.S. Supreme Court review the lower court’s decision and the justices have agreed to hear oral arguments in the case on Jan. 10, 2025. Read more
EPA Denial of Kentucky Good Neighbor Plan Overturned
A U.S. Court of Appeals for the 6th Circuit rejected an action made by the Environmental Protection Agency that denied Kentucky’s “good neighbor” plan and replaced the state’s plan with a new federal plan. According to the unanimous ruling, the court deemed that the EPA acted arbitrarily by changing its model and emissions threshold, after providing Kentucky with guidance and directing them to not worry about interstate emissions beyond a certain threshold. According to the ruling, the EPA’s motion to move the case to the D.C. circuit court was denied because the EPA’s denial of Kentucky’s plan was not nationally applicable.
Happy Holidays! Capitol to Capitol will return January 13, 2025.