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June 5, 2026 | Vol. MMXXVI | Issue 164 |
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Note: This will be the last issue of Disability Policy News before we take a break for the summer. |
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In this edition:
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Appropriations and Budget
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Department of Health and Human Services
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OMB Proposed Rule on Grants
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New Legislation
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AUCD Materials
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Words to Know
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Appropriations and Budget |
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The House Appropriations Committee released the Fiscal Year 2027 Labor, Health and Human Services, Education, and Related Agencies bill, which funds AUCD programs. The bill proposes a four percent cut to the Department of Health and Human Services (HHS) and a 10 percent cut to the Department of Education. On June 5, it was marked up and passed by the LHHS subcommittee on an 11-7 party line vote. The bill now heads to the full House Appropriations Committee for its consideration on June 9.
Additionally, Congressional Republicans are moving forward with their second party-line budget reconciliation bill this Congress. The Senate passed the bill early Friday morning. It will fund immigration enforcement operations under the Department of Homeland Security and now heads to the House. |
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Key Takeaways |
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Without report language, we don’t yet have line-item figures for AUCD programs, but we do know that the Administration for Community Living is level-funded ($2.5 billion) and the Health Resources and Services Administration received a funding cut ($7.6 billion for HRSA, a decrease of $440 million below the 2026 level).
Bill text
Majority's Summary
Minority's Summary |
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Plain Language |
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Congress needs to pass government spending bills to make sure the government is funded in 2027. Before Congress can vote on those bills, committees in the House and Senate need to first review them. This is a process called a markup and the committees are called appropriations committees. Appropriations means money that is set aside by Congress for a particular use. The appropriations process happens once a year. Money is sometimes requested by the President’s Administration or by Congress for a specific use.
Right now, Congress is in the middle of its appropriations process for 2027 funding. The Senate and the House both have committees that work on appropriations. Within those committees, they have special groups (called subcommittees) that focus on health, work, and education laws. The appropriations bill that this subcommittee works on is called the Labor, Health and Human Services, and Education (LHHS) bill. This bill gives money to programs in the AUCD Network: University Centers for Excellence in Developmental Disabilities (UCEDDs), Leadership Education in Neurodevelopmental and Related Disabilities (LEND) Programs, and Intellectual and Developmental Disabilities Research Centers (IDDRCs). The House subcommittee that works on health, work, and education passed their bill this past week. They cut some funding for programs in the Department of Health and Human Services and the Department of Education. The House bill was passed by only Republicans, so it was not bipartisan. Bipartisan means something is supported by both Democrats and Republicans.
In the House Appropriations LHHS bill, the Administration for Community Living got the same amount of money as usual. UCEDDs are under the Administration for Community Living. The Health Resources and Services Administration, which is in charge of the LENDs, got a funding cut. We will know more information when we get the report from the committee, which will have more details.
At the same time, there is a process called budget reconciliation that Congressional Republicans are working on. This is different than appropriations. Congressional Republicans want to pass a bill to give money to the part of the Department of Homeland Security that includes immigration police: Immigration and Customs Enforcement (ICE) and Customs and Border Protection (CBP). They are using a special process called reconciliation. This process can be used for bills that are about spending money. It can be used when the same political party (Republicans or Democrats) are in charge of the Senate, the House, and the Presidency. This is because you don’t need as many lawmakers to vote ‘yes.’ It is usually used when lawmakers in one political party (either Democrat or Republican) want to pass bills they know the other political party wouldn’t like very much. On Friday morning, Senate Republicans passed this bill. The House of Representatives has to vote on it next. |
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Department of Health and Human Services |
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Medicaid Work Requirements – On June 1, the Centers for Medicare and Medicaid Services (CMS) released an interim final rule that details how states should manage exemptions for work requirements created under H.R.1 (the One Big Beautiful Bill Act). H.R.1 established work requirements for adults ages 19 through 64 to receive Medicaid benefits. The rule clarifies who is exempt for these work requirements and what Medicaid beneficiaries would have to do to qualify for an exemption.
There are several categories for work requirement exemptions. One of these categories is “medically frail”—people wishing to claim this exemption would have to prove one of the following:
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They are blind
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They are disabled under the definition in the Social Security Act
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They have a physical, intellectual, or developmental disability that significantly impairs one or more activities of daily living (ADLs)
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They have a substance use disorder
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They have a serious or complex medical condition
According to the new rule, in order to prove you are “medically frail”—a definition that is not typically used in the disability community—you have to also show that your condition significantly impairs your ability to meet work requirements. Caregivers of children or people with disabilities can also be exempt from the work requirements, as well as people already complying with similar requirements through SNAP or TANF.
For 2027, CMS says states can use existing data to see if there are people who already get Medicaid who meet an exemption. CMS will allow beneficiaries to self-declare that they meet those exemptions. Starting in 2028, people will need to show documentation and proof to keep their benefits.
There is a comment period through July 31.
Key Takeaways
Advocates are concerned that fewer people will qualify for the medically frail exemption, meaning more people than expected will lose health coverage. It’s important to note that applying for exemptions is already a burdensome process, and many people will lose coverage simply because they cannot get a doctor statement to prove they need the exemption or they make an administrative mistake in submitting their documentation. This rule will mean that more people will lose access to healthcare that they need due to heightened administrative burden.
People with disabilities who rely on Medicaid will have to choose between proving that they are meeting the 80-hour a month work requirement—a tall order for many people who do not have control over their work schedules and/or work hourly jobs—or proving that their disability significantly impairs them from working. As this policy brief from the Center for Budget and Policy Priorities points out, this could mean loss of coverage for “people who are able to work because they have consistent access to health care to manage their condition, but whose health could deteriorate to the point where they could no longer work if their health care were interrupted.” It could also mean loss of coverage for people with medical conditions like cancer if people with those conditions don’t provide proof that their condition makes it harder for them to work. Adding these burdens of proof for people will mean it will be harder for many people to keep their healthcare.
Not only is this new rule dangerous for people with disabilities and people with serious medical conditions, but it also creates new challenges for states, which have been operating under a different interpretation of H.R.1’s work requirement language. Many states have been preparing for implementation of H.R.1 by using their own diagnostic codes to identify people who can claim a medically frail exemption. Now, they will have to adopt this new, more restrictive definition of medical frailty, and they are not allowed to add more categories to the list of people who can claim that exemption.
CMS allowing self-declaration and existing data in 2027 will help states manage the high costs that are expected to accompany these new reporting requirements. However, states will eventually have more work on their hands to identify people who qualify for the medical frailty exemption. In the long term, states will have to do a lot more work determining if people can claim the exemption and figuring out if they have a condition that significantly impairs their ability to work.
Centers for Disease Control and Prevention (CDC) – On May 29, President Trump signed an Executive Order (EO) directing the CDC to review and potentially update the U.S. childhood vaccine schedule. The EO specifically calls for the CDC’s Advisory Committee on Immunization Practices (ACIP) “to review the HHS scientific assessment, which included best practices from peer, developed countries for core childhood vaccination recommendations…and take any appropriate steps to update the U.S. childhood and adolescent vaccine schedule.”
Key Takeaways
Earlier this year, President Trump released a memo directing HHS and CDC to make changes to the childhood vaccine schedule to more closely mirror countries that recommend fewer vaccines for children. Public health experts warn that these nations are smaller and typically provide universal health care, making the U.S. an incompatible comparison. Fifteen states sued HHS over that change, and the case is ongoing.
In this EO, the President directs ACIP to consider “ways to provide maximum flexibility to parents and doctors through recommendations for timing and sequencing of the administration of routine immunizations.” This EO follows the same moves that the President and Secretary Kennedy have been making since the beginning of the Administration—weakening and diluting vaccine guidance to get Americans to take fewer vaccines. |
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Plain Language |
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Medicaid Work Requirements – There is a new rule that the Administration is creating about Medicaid work requirements.
Work requirements mean that people have to prove to the federal or state government that they have a job and have worked a certain number of hours every month. They are also sometimes called community engagement requirements. Medicaid actually helps people work because it helps them get the services and supports they need to be independent and go to work when they need to. Most people who have Medicaid already work. Also, there are people who cannot work, and they still deserve to get healthcare.
In H.R.1, or the "One Big Beautiful Bill," Congress made new work requirements for people who have Medicaid. Now, the Centers for Medicare and Medicaid Services (CMS) has a rule it is creating that says people who live in states that gave more people access to Medicaid have to follow certain rules to get Medicaid. Work requirements will make it harder for people with disabilities to get the healthcare they need.
The rule says that people who are “medically frail” do not have to work to get Medicaid. It says there are two things that make someone medically frail. One is having some kind of disability or serious health condition. The second is you need to prove you can’t work because of that disability or serious health condition. This is really hard to prove. Some states might say that you can work even if you can't. Getting proof from a doctor that you can't work might be hard, because not everyone has easy access to a doctor.
Also, this rule is different than what most states thought “medically frail” meant. Now, they will have to spend a lot of money and time changing their own rules.
This rule will make many people with disabilities, people with serious health conditions, and older adults lose the health care and services we need. This rule is not final. CMS is taking comments on the rule. They take comments until July 31st. People and organizations can tell CMS this is a bad rule that will hurt people. CMS might change the rule because of comments.
You can read more from the Autistic Self Advocacy Network (ASAN), which has this plain language explainer of the rule.
Centers for Disease Control and Prevention (CDC) – On May 29, President Trump signed an Executive Order (EO), which is an official document with rules for agencies. The EO said that the CDC has to review and maybe change the childhood vaccine schedule (a list of vaccines and timeline for when children should get them). Vaccines are shots that keep people from getting diseases. HHS has previously changed the childhood vaccine schedule to recommend fewer vaccines for kids. Many scientists, advocates, and public health organizations have said that these changes were made without experts and without good science to back it up.
Previously, President Trump sent a memo to HHS and CDC. He said that he wanted those agencies to make changes to the childhood vaccine schedule so it looks more like the childhood vaccine schedule in a few other countries. The countries he listed usually recommend fewer vaccines for children. Now, the EO says something very similar. When President Trump's memo came out, public health experts were worried. They said that the countries listed in the memo are different from the U.S. in a few different ways, so we should not try to be more like them when it comes to vaccines.
Health experts are worried because this might mean that fewer kids get vaccinated for these diseases. People might be confused and think that vaccines aren't safe. They might get fewer vaccines, which means more kids might be at risk of getting those diseases. People might be confused about this advice, and they might not get a vaccine. This could be bad for people with disabilities, especially people who have a disability that makes it easier for them to get sick or people who use a device to help them breathe.
This new update has been very similar to what the President and HHS Secretary Kennedy have been doing over the past year. They want fewer people to get vaccines and they think vaccines are not safe. |
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OMB Proposed Rule on Grants |
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On May 29, the Office of Management and Budget (OMB) announced the “Regulation for Federal Financial Assistance” proposed rule, which rewrites certain sections of the federal regulations that govern competitive federal grant awards. This rewrite implements many of the changes President Donald Trump outlined in his August Executive Order (EO), Improving Oversight of Federal Grantmaking. It also goes beyond areas covered in the EO.
The proposed rule would set up a process for political review of grants that centralizes OMB control over the release of government funds, including scientific research grants. It gives agencies broader discretion to cancel awards that they believe no longer serve program goals or the agency’s priorities. Among many other changes, the rules direct “senior appointees” at federal agencies to take charge of awarding and terminating new and existing research grants and other federal awards—a change that reflects an August Executive Order. |
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Key Takeaways |
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The new process could possibly help insulate the Administration from cancellations from legal challenges that arose in the past. It also injects more political authority into the grantmaking process, which is concerning, since federal research grants are ostensibly supposed to be an apolitical process guided by subject matter experts.
There is an open comment period that ends on July 13. OMB is aiming to finalize the rule by October 1. When the proposed rule is finalized, it will impact everyone with a federal grant and anyone applying for a federal grant. |
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Plain Language |
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On May 29, the Office of Management and Budget (OMB) announced a new rule. They are in charge of making sure federal agencies run smoothly. The new rule would change the process of federal grantmaking. This is when an organization or company applies for money from the government. This money is called grants. The new rule would give some people who the President appoints more power to decide who gets grants. Usually, experts decide who gets grants. People are worried about this because the people the President appoints might be more focused on politics and what the President wants, instead of what would be best for scientific research. People can send in comments until July 13. |
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New Legislation
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Plain Language |
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There are a few new bills in the U.S. Congress.
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The Home and Community Based Services (HCBS) Anti-Fraud Reporting Act would make states send a report to the Secretary of Health and Human Services about any fraud or waste in HCBS programs in their states and what they are going to do about it. Fraud is when you pretend to do something or be someone in order to get money.
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A bill to give special education services to children who are blind, deaf, or both
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A bill to stop the Department of Homeland Security from arresting kids who have an intellectual disability
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AUCD Story Collection |
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AUCD is collecting stories from the Network on a variety of topics to amplify the effects of this Administration on real people and our programs. If you have a story, we want to hear it.
We are interested in stories about:
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Medicaid and its impact on people's lives
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The impact of dismantling ACL
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The important work of UCEDDs, LENDs, IDDRCs, PNS’s, DD Councils, P&As
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The impact of zeroing out UCEDDs, LENDs, IDDRCs, PNS’s, DD Councils, P&As
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Impact of grants that are being cut
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Stories responding to RFK Jr.’s claims about autism or the autism registry
You can use this link to provide information and let us know if you are comfortable sharing your story with Members of Congress and their staff. |
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AUCD Policy Blog |
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AUCD invites Network members to fill out this form if you’re interested in writing for the AUCD policy blog. We are open to a variety of issues areas, and we will follow up with you as relevant issues come up that we’d like you to write about.
Read our newest blog from Lily Olsen: The Federal Tax Credit Scholarship Program and Its Threat to Students with Disabilities |
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Disability Policy for All with Liz |
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Join Liz on Instagram Reels, where she provides plain language updates on policy, highlighting current issues and hot topics in federal disability policy.
Liz Weintraub is AUCD's Senior Advocacy Specialist and the host of “Disability Policy for All with Liz.” She has extensive experience practicing leadership in self-advocacy and has held many board and advisory positions at state and national organizations, including the Council on Quality & Leadership (CQL) and the Maryland Developmental Disabilities Council.
Watch Liz’s recent videos here. |
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Words to Know |
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Appropriations
Appropriations means money that is set aside by Congress for a particular use. The appropriations process happens once a year.
Work Requirements
Work requirements mean that people have to prove to the federal or state government that they have a job and have worked a certain number of hours every month. They are also sometimes called community engagement requirements. |
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