Congress returned to Washington this week, focusing on budget rescissions, while judicial activity continues across the country with direct and indirect implications for cities.
Rescissions and Appropriations
The Senate gave its final approval to H.R. 4, the Rescissions Act of 2025, with final passage expected by the end of the week. The measure cancels approximately $9 billion in previously approved federal spending. While the rescissions do not target direct municipal funding, one notable cut affects federal support for public broadcasting, which will likely impact Georgia Public Broadcasting (GPB) and local affiliate stations across the state. Meanwhile, the House continues to work on the Fiscal 2026 appropriations bills.
Federal Courts Take Center Stage on Immigration Policy
The implementation of the administration’s immigration policies continues across the country. Several major court cases continue to shape federal immigration enforcement. These cases could also affect how federal grants intersect with local authority. Three recent developments include:
- San Francisco v. Trump: The court ordered the administration to justify HUD’s immigration-related conditions on Continuum of Care (CoC) homelessness grants, questioning whether those conditions align with the purpose of the program.
- United States v. Rochester: The DOJ is defending its authority to enforce 8 U.S.C. § 1373, which mandates certain local information-sharing with federal immigration officials.
- Vasquez Perdomo v. Noem: A federal judge issued a temporary restraining order against racial profiling and warrantless stops by ICE agents in California. The order requires access to legal counsel, restricts stops without reasonable suspicion, and mandates documentation and training reforms.
Unpacking the “One Big Beautiful Bill”
The full scope of H.R. 1, the One Big Beautiful Bill, continues to unfold. While some provisions have made headlines, others may quietly reshape federal-local relations as agencies begin implementing the law. The National League of Cities (NLC) has released an early analysis of how the legislation could affect local governments.