NEW YORK – Faced with looming budget deficits, the Trump administration is looking to cut federal spending by some $15 billion, with almost half coming from the Children's Health Insurance Program (CHIP).

In the past six months, Congress and the White House have enacted tax cuts and spending increases that will raise the federal deficit by more than $1 trillion.

To compensate, the administration announced a package of proposed cuts Monday night that would cut $7 billion from CHIP.

According to Shawn Gremminger, director of federal relations at Families USA, the cut would hinder the program's ability to respond to increased demand.

"The base CHIP program will be OK without this funding, but it significantly reduces the ability of the federal government to provide support for CHIP in the case of an emergency or in case more people get enrolled than is expected," Gremminger points out.

Administration officials say much of the proposed cuts are from funds that are not expected to be used, so they will not affect operations.

Gremminger says the cuts are intended to calm fiscal conservatives who are concerned about the huge projected deficits that are coming in the years ahead.

"But instead of going after the budget pieces that have actually been included in this increased spending, or decreased revenue in the case of tax cuts, they're going after kids," he states.

The proposed rescission package is less than one-half percent of total government spending for the year, and the administration has promised several more proposals.

Gremminger notes out that Congress must approve the cuts for them to take effect. In the closely divided Senate, the rules require a simple 51 percent majority.

"This almost certainly can pass the House of Representatives,” he concedes. “But over on the Senate side, I think the vast majority of Democrats would oppose this, and I think there are at least a decent number of Republicans who are skeptical of moving on this package this year."

The rescission package also calls for $800 million in cuts to the Center for Medicare and Medicaid Innovation.


get more stories like this via email

In a significant development for family caregivers across America, AARP is spearheading initiatives at both federal and state levels to provide tax relief for those caring for loved ones. The organization is championing the Credit for Caring Act, which proposes a $5,000 federal tax credit, while also pursuing similar legislation at the state level in Ohio.

Jenny Carlson, AARP Ohio state director, said it's a comprehensive approach to supporting the 48 million Americans who serve as family caregivers.

"We're doubling down on this initiative! We feel strongly that it's going to work on the national level. We are turning our attention to the state law, working towards (a) swift package so that family caregivers could take advantage of it for their 2026 returns," she explained.

Carlson added that Ohio is home to approximately 1.5 million family caregivers, providing an estimated $21 billion worth of unpaid care each year. She added they struggle to balance caregiving with full-time jobs, often sacrificing income and retirement savings. The proposed tax credit has received bipartisan support.

AARP has been vocal in its support for Rep. Mike Carey, R-OH, who is sponsoring the legislation in Congress. Carlson emphasized the importance of enabling caregivers to continue working while supporting their loved ones.

"It's called the Credit for Caring Act, which would provide eligible working caregivers a tax credit to help offset the costs of care that they offer. It would allow them to continue to work while caring for a loved one through illness, disability and aging in place," Carlson said.

A recent AARP backed survey found that 84% of voters across party lines support a tax credit for family caregivers. However, some experts caution that while tax relief is helpful, broader policies-such as increased Medicaid coverage for home care may be necessary to fully address the challenges caregivers face. The bill's future now rests with Congress.

Dozens of local leaders from California are in the nation's capital this week, joining about 2,800 colleagues from around the country at the National League of Cities' Congressional City Conference.

The group met with White House officials Tuesday and is set to see Sen. Alex Padilla, D-Calif., today.

David Sander, a council member and former mayor in the city of Rancho Cordova and immediate past president of the league, said local leaders want to find out how the "DOGE" cuts could impact their cities' bottom lines.

"Because there are so many changes potentially underway, we're really focused on certainty and stability," Sander explained. "Because it's hard in local government, where everything has to work, and we're held accountable."

Local officials are concerned the budget bill being prepped in Congress could eliminate the tax-free status cities now get on their municipal bonds, financing priorities like roads and schools. And in the upcoming transportation bill, local leaders want to continue the previous Trump administration practice of sending funds directly to municipalities, rather than routing them through the state.

Sanders pointed out the briefing on immigration covered the many legal issues surrounding cities' policies on cooperation with federal Immigration and Customs Enforcement.

"There's an awful lot in the hands of the courts right now," Sanders observed. "Trying to understand the role of a federal detainer versus a federal warrant, versus a local warrant; trying to understand the legalities around all those and what cities can or can't do."

California is home to multiple so-called sanctuary cities, including Berkeley, Fremont, Oakland, Los Angeles, San Francisco, Santa Ana and Watsonville. The conference wraps up today.


get more stories like this via email

It is the North Dakota Senate's turn to ramp up debate on property tax reform, a key issue of this session and lawmakers are hearing from a range of groups, including farmers, to ensure a fair plan.

Several bills to establish property tax relief have already cleared the North Dakota House. Yesterday, a Senate committee took up some of the proposals. All the measures have different language, but a consistent provision is an annual 3% cap on property tax hikes sought by local governments.

Parrell Grossman, legislative director for the North Dakota Soybean Growers Association, told lawmakers he hopes a final package will include agricultural properties.

"Some of these landowners might certainly have significant land and others might be facing huge debt because of their machinery, livestock costs, or low crop prices," Grossman pointed out.

The arguments come as farmers navigate land price issues and other market forces in an era of corporate consolidation. Advocates also acknowledged the need for balance, so small and large communities are not hamstrung in maintaining their infrastructure. Some rural leaders worry about proposed caps limiting their ability to raise enough revenue to not harm vital services.

Brenton Holper, city administrator for the City of Horace, a town of more than 3,000 people just outside Fargo, elaborated on potential service disruptions if local governments are weighed down by any property tax restrictions.

"Instead of plowing the street when there's a couple inches of snow, it might be five, six inches," Holper pointed out. "The thresholds are going to be different."

Still, Holper was among those who said they recognize many people are "fed up" with their property taxes. In a ballot question last fall, North Dakota voters rejected the idea of largely doing away with property taxes but polling has indicated they want policymakers to take meaningful action to keep their yearly bills in check.


get more stories like this via email