Mar. 9 Federal Update: Proposed Rule Would Introduce Key Agreement Certifications Within Federal Grant Portal 

 The General Services Administration (GSA) has proposed requiring applicants, both when initially registering in the System for Award Management (SAM.gov) and during each annual renewal, to agree to three new certifications. The agreements prohibit grantees from supporting illegal immigration, illegal activities that threaten public safety or national security, and behavior that violates federal antidiscrimination laws.  

Nonprofits and state and local governments alike rely on the federal System for Award Management (SAM) portal to apply for and manage federal financial assistance. The proposed changes are expected to broadly affect grantees, as vague and complex language poses key compliance challenges. 

The proposed changes follow guidance from the Department of Justice prohibiting federal grantees from engaging in unlawful discrimination. 

The General Services Administration is requesting comments and will continue to accept feedback through March 30. 

ACF Clarifies Grounds for Child Removal Decisions  

On March 3, the Administration for Children and Families (ACF) sent letters to all 50 states reminding them that children may not be removed from their homes solely because parents decline to support a child’s self-identification as the opposite sex. 

The letter reinforces the obligation of state child welfare agencies to base child removal decisions on objective evidence of abuse or imminent risk of harm under the Child Abuse Prevention and Treatment Act. It also warned states not to interpret federal definitions too broadly in ways that infringe on parental rights or lead to unnecessary foster placements by removing children for reasons that do not constitute abuse and neglect.  

According to the press release detailing the agency’s decision, ACF issued the letter with the hopes of keeping more families together and reducing the number of parents drawn into the child welfare system solely because they decline to support sex-reassignment interventions. 

ACF Partners to Modernize Comprehensive Child Welfare Information Systems  

The Administration for Children and Families introduced the Child Welfare Technology Incubator to modernize the planning, launch, and implementation of Comprehensive Child Welfare Information Systems (CCWIS). The Incubator will provide targeted technical assistance, scalable CCWIS blueprints for other states, and create a place for states to receive frequent feedback on proven planning and implementation tools. By partnering with states earlier to develop technology infrastructure, ACF hopes states will move faster, build smarter, and deliver better outcomes for children and families nationwide. 

ACF Issues Child Welfare Policy Manual Revisions

The Administration for Children and Families has revised the Child Welfare Policy Manual to ensure alignment with the 2024 Foster Care Legal Representation final rule issued by (89 FR 40400).  The manual now clarifies that a title IV-E agency may claim such title IV-E administrative costs to the extent that they are necessary to support an attorney providing such representation.

Department of Education Announces Partnership with HHS to Support Family Engagement and School Support Programs 

The Department of Education recently announced its partnership with the Department of Health and Human Services to improve the safety and physical security of educational institutions. HHS will take a growing role in administering the School Emergency Response to Violence (Project SERV), School Safety National Activities, Ready to Learn Programming, Full-Service Community Schools, Promise Neighborhoods, and Statewide Family Engagement Centers.  

With oversight from the Department of Education (ED), HHS will manage competitions, provide technical assistance, and integrate ED’s programs with the larger suite of disaster preparedness and response programs that HHS already administers.  

The Department of Education shared the value of HHS’ experience and expertise in helping communities respond to serious events. Through the partnership, the Department of Education aims to consolidate resources and initiatives to provide a unified federal strategy focused on school support and related issues.  

For further information, the Department of Education has published a fact sheet. 

HHS Announces Efforts to Address Health Care Fraud 

The U.S. Health and Human Services and the Centers for Medicare & Medicaid Services recently announced they will defer $259.5 million of quarterly federal Medicaid funding in Minnesota to prevent the payment of questionable claims while further investigation is completed. If Minnesota does not address critical program integrity vulnerabilities or demonstrate that the expenditures are allowable, CMS may defer more than $1 billion in federal funds over the next year. CMS also continues to closely oversee Minnesota’s efforts to implement its corrective action plan to address the underlying causes of fraud, waste, and abuse within the state. Minnesota has since filed a lawsuit to prevent the funds from being withheld. 

The agencies’ decision arrives during critical allegations of the misuse of federal taxpayer dollars in Minnesota’s social services programs. On March 4, the House Oversight Committee continued to investigate the allegations through its second hearing, Oversight of Fraud and Misuse of Federal Funds in Minnesota: Part II. The Governor of Minnesota, Tim Walz, the state’s attorney general, Keith Ellison, and Reverend Mariah Tollgaard testified before the committee. 

Rising Health Care Costs Endanger HIV Care and Prevention Programs 

The National Association of State and Territorial AIDS Directors, a non-profit association that represents public health officials who administer HIV and hepatitis programs in the U.S, recently issued a report warning of diminishing access to health care through AIDS Drug Assistance Programs (ADAPs). ADAPs provide life-saving HIV treatment to low-income, uninsured, and underinsured individuals living with HIV/AIDS in all 50 states and the surrounding territories. ADAP programs are estimated to support about 25% of the 1.2 million people living with HIV in the United States. 

While funding for ADAPs has remained relatively constant, healthcare costs have continued to rise at rates often unsustainable for states. According to the report, at least 18 states have implemented measures to reduce costs, including by raising eligibility requirements, and five more states are weighing similar steps as budget shortfalls grow. 

House Energy and Commerce Committee Considers Legislation to Protect Children’s Online Safety 

The House Energy and Commerce Committee recently advanced a package of eight bills intended to protect children’s online safety. The legislation would establish national age verification requirements and create new online safety and privacy protections for children. Additionally, the legislation requires parental control tools to implement strict privacy settings, instructs the Federal Trade Commission to conduct third-party audits of safety protocols, and directs federal agencies to study the impact of social media on mental health.  

Through the bills’ consideration, Democratic representatives stressed the need for data protections and the potential of federal action to preempt state protections. Certain bills drew particular concern as they diverged from their Senate counterparts. Notably, the Senate versions of the Kids Online Safety Act and the Children and Teens’ Online Privacy Protection Act retain bipartisan support as they include language requiring companies to design products with kids’ safety in mind. 

The legislation also sparked First Amendment concerns regarding the potential to limit free speech, and arises as courts consider a similar question. Recent litigation prevented the enforcement of Senate Bill 854, a Virginia bill that required social media platforms to determine whether a user is under the age of 16. Companies were then obligated to set a default restriction of one hour per day of usage for those accounts unless a parent or guardian gives verifiable consent to increase or decrease that limit.   

Advocates encouraged the bill as a public-health measure to combat excessive screen time and its alleged negative effects on children’s mental health and academic performance.  However, NetChoice, a trade association whose membership includes major technology companies such as YouTube, Instagram, Reddit, and X Corp, filed a lawsuit. NetChoice argued that the statute violates the First Amendment by restricting access to lawful speech and expression online. 

The U.S. District Court for the Eastern District of Virginia issued a preliminary injunction, halting enforcement of the law while the lawsuit continues.  Judge Giles determined that the law violates the First Amendment Rights of minors and the companies’ rights to distribute content.   

House Agriculture Committee Advances the Farm, Food, and National Security Act of 2026

The House Agriculture Committee passed the Farm, Food, and National Security Act of 2026 by a vote of 34 to 17, with the support of seven Democratic members. The bill will now advance to the House floor for a full vote.

The bill included amendments to strengthen access to affordable broadband service and health care access in rural areas. It also allows states to redirect up to 20 percent of Emergency Food Assistance Program (TEFAP) funds toward the Department of Defense Fresh Fruit and Vegetable Program, which is expected to reduce food insecurity by supporting local food banks and community food programs. Additionally, the bill expands child care options for rural families by recognizing Head Start providers as eligible entities under the Expanding Childcare in Rural America Initiative.

Education and Workforce Committee Passes Bills to Address Fraud and Strengthen Oversight for Child Care Assistance Programs

On March 5, the Education and Workforce Committee passed eight bills to address fraud and strengthen oversight in federal child care assistance programs. A few provisions include creating a 5% threshold for improper payments before corrective action is required, improving data sharing between state agencies, and withholding funds from states that fail to address fraud or repeat violations. Additionally, the legislation would codify the Department of Health and Human Services’ practice of auditing states’ Child Care and Development Block Grant (CCDBG) funds every three years. Child care providers found to have committed fraud would be prohibited from receiving CCDBG funds.

The bills will now be considered by the House as a whole.

To review the bills, the Education and Workforce Committee has published a press release outlining the legislation.

House Passes Legislation to Fully Fund the Department of Homeland Security

The House of Representatives passed H.R. 7744, the Department of Homeland Security Appropriations Act, by a vote of 221 to 209. However, the bill’s path remains uncertain in the Senate, potentially leading the partial government shutdown to continue. The lapse in federal funding raises key concerns for national security and federal responses to and recovery from natural disasters.

The House Committee on Appropriations has published a summary outlining the proposed bill.

Department of Labor Announces $81M To Support Training and Employment for Formerly Incarcerated Individuals 

The U.S. Department of Labor recently announced approximately $81 million in grants through the Reentry Employment in Skilled Trades, Advanced Manufacturing, Registered Apprenticeships, and Training (RESTART) initiative. The grants will be offered to organizations to provide training programs to formerly incarcerated individuals in skilled trades and high-demand industries. Training and employment services include pre-apprenticeships, work-based learning, AI and digital literacy training, credential attainment, and paid work experience, with a specific focus on placing participants within the proven model of Registered Apprenticeships. 

The department intends to fund up to 20 RESTART projects nationwide, with approximately $30 million allocated to national or regional intermediary organizations serving youth and young adults, and up to $5.1 million for individual awards. The remaining funds will be awarded to states, territories, and tribes to support state-led projects that integrate RESTART grant activities with the public workforce system under the Workforce Innovation and Opportunity Act. These grants will leverage existing workforce infrastructure and ensure effective strategies can be sustained after the grant period.   

ASPE Report Examines Trends in Title IV-E Foster Care Expenditures FY2019-FY2023 

The Office of the Assistant Secretary for Planning and Evaluation recently published a brief analyzing reported expenditures and reimbursements within the Title IV-E foster care program. The report relied on the most recent years of publicly available claims data, including fiscal years 2019 to 2023, to examine administrative costs, identify how average monthly costs per child have changed over time, and provide a snapshot of variation across states in FY2023. 

Key findings include that administrative costs, especially in-placement administrative costs, have been the largest driver of Title IV-E foster care reported expenditures and reimbursements from FY2019 to FY2023. Average monthly administrative expenses per child increased 40 percent from FY2019 to FY2023; however, the average monthly number of children served through administrative-related Title IV-E foster care activities has declined.  

FNS Issues Guidance as States Prepare for the End of Required Funding of SNAP-Ed 

The Food and Nutrition Service issued a memo on Feb. 24, detailing a series of questions and answers to inform closeout procedures for state agencies that intend to close their FY 2025 SNAP-Ed grant and return unexpended grant funding. The guidance follows the recent reconciliation bill, H.R. 1, which terminated the required funding of SNAP-Ed with the fiscal year (FY) 2025 grant allocation. 

Sector Updates from the Judiciary 

Texas Attorney General Issues Legal Opinion Preventing Mental Health Providers from Providing Gender Affirming Care  

The Texas Attorney General, Ken Paxton, recently clarified the scope of a 2023 Texas law, SB14, which prohibited health care providers from providing gender-affirming care to minors. Paxton specified that the law extends to any individual with a license that facilitates care in the transition of a child’s sex, including licensed mental health care providers. Health care providers found to violate the law are at risk of losing their license. 

The Supreme Court upheld a similar Tennessee law, a landmark decision that protects the Texas law and similar state laws restricting access to gender affirming care. Currently, 27 states have enacted laws and policies that limit access to gender affirming care.  

The Attorney General’s opinion also arrives as the Supreme Court prohibited California from enforcing state rules that require teachers to use children’s preferred pronouns and restricts when schools may notify parents of students who come out as transgender. Holistically, the Supreme Court’s decisions introduce marked shifts in children’s ability to access gender affirming care. 

Federal Court Prevents the Cancellation of Mental Health Grants Representing Nearly $1 Billion  

In April 2025, the U.S. Department of Education cancelled federal grants worth nearly $1 billion after determining that they did not align with agency priorities. The grants had been approved in fiscal years 2022, 2023, and 2024 under the School-Based Mental Health Services Grant Program and the Mental Health Service Professional Demonstration Grant Program.  

Eight months later, the Department issued new priorities and distributed more than $208 million in new mental health grants. However, within a week, a federal judge ordered the permanent reinstatement of the Education Department’s mental health grants in the 16 states that filed the lawsuits.  

The 9th U.S. Circuit Court of Appeals has since upheld the decision, determining the administration failed to adequately demonstrate that it engaged in the decision-making required to notify recipients of why their multiyear grants were discontinued. While the permanent injunction does not require the Department to release any funds to the states that filed the lawsuits, it does require it to issue new funding decisions. 

Federal Court Prevents USDA From Withholding SNAP Funds to States That Refuse to Share Sensitive Data 

In November and December, the U.S. Department of Agriculture (USDA) ordered states to provide records of households eligible for the Supplemental Nutrition Assistance Program (SNAP), including their Social Security numbers, home addresses, and immigration statuses. 

The U.S. District Court for the Northern District of California determined the USDA cannot withhold food assistance funds from states that fail to comply. The verdict ensures SNAP funds will continue to states as litigation continues.  

Federal Court Mandates Bond Hearings for Immigrants  

The U.S. District Court for the Central District of California recently vacated an immigration court ruling that mandated migrants and individuals without American citizenship remain in detention while their cases proceeded in immigration courts. The verdict holds the potential to guarantee bond hearings for many migrant detainees who have not been convicted of criminal offenses. 

The verdict followed the 5th Circuit Court of Appeals’ determination that the detention practices are legal. In response to the District Court’s ruling, Chief Immigration Judge Teresa Riley emailed immigration judges, maintaining that Sykes’ findings didn’t overrule or vacate the Fifth Circuit’s interpretation of the detention statute. 

Multiple appellate circuits nationwide are considering a similar question of whether the Trump Administration is legally able to enforce a mandatory detention policy. Nevertheless, the District Court’s ruling carries significant weight as it applies to detainees nationwide.