In this issue of Capitol Connection, you’ll find updates on the FY 2027 appropriations process and new federal guidance on Medicaid work requirements, as well as other key policy developments affecting the Autism community. We encourage you to stay engaged and visit the Autism Society of America’s Action Center to contact your Members of Congress and advocate for policies that support Autistic individuals and their families.  

Appropriations Update 

Congress continues to work on Fiscal Year (FY) 2027 appropriations bills ahead of the September 30 funding deadline. The House has advanced nearly all of its spending bills through committee, and several have already passed the House floor. 

The House Labor, Health and Human Services, Education, and Related Agencies (Labor-HHS-Education) appropriations bill, which the Autism Society closely monitors, passed out of the House Appropriations Committee at a vote of 34-28 on June 9. The bill would reduce overall discretionary spending by approximately 9 percent compared to FY 2026 levels. While no programs authorized under the Individuals with Disabilities Education Act (IDEA) were cut or consolidated, IDEA Part B funding would increase by $35 million and Part C funding would increase by $10 million. However, the bill includes significant reductions to Title I grants, which support public schools serving high percentages of students from low-income families. 

Within the Department of Health and Human Services, the bill proposes an overall 4 percent funding reduction. The Centers for Disease Control and Prevention (CDC) would receive a $1 billion cut, while the National Institutes of Health (NIH) would receive a $100 million increase. Funding for Autism-related programs at NIH, CDC, and the Health Resources and Services Administration (HRSA) remains intact, including support for the Leadership Education in Neurodevelopmental and Related Disabilities (LEND) program. The bill also includes report language highlighting issues important to the Autism community, including rural health care access, drowning prevention, music therapy, and Neurofibromatosis. In addition, programs authorized under the Developmental Disabilities Assistance and Bill of Rights Act would be funded at FY 2026 levels. 

In contrast, the Senate has not yet begun marking up its appropriations bills. On June 8, Senate Appropriations Committee Chair Susan Collins (R-ME) announced that planned markups would be postponed because Senate Republicans and Democrats have not reached a bipartisan agreement on overall funding levels. 

Both chambers must pass their appropriations bills and reconcile any differences before September 30. If Congress is unable to complete that process in time, lawmakers will need to pass a continuing resolution to avoid a government shutdown. Reaching a final agreement may be particularly challenging given the compressed legislative calendar and competing political priorities. 

Interim Final Rule Work Requirements 

The Centers for Medicare & Medicaid Services (CMS) published an Interim Final Rule (IFR) on June 3 outlining new Medicaid community engagement and work requirements. The rule provides guidance to states on implementing the requirements enacted in July 2025 as part of H.R. 1, the budget reconciliation law that included significant changes to Medicaid.  

Under the law, states that expanded Medicaid under the Affordable Care Act (ACA) must implement community engagement and work requirements for certain Medicaid beneficiaries beginning January 1, 2027. The requirements will apply in all Medicaid expansion states except Alabama, Florida, Georgia, Kansas, Mississippi, South Carolina, Tennessee, Texas, Wisconsin, and Wyoming. 

The IFR is open for public comment until July 31 and the Autism Society encourages individuals and organizations to comment. 

Key highlights from the interim final rule include: 

• Medicaid expansion applicants and enrollees aged 19-64 must meet an 80 hours per month work requirement. These 80 hours may be met through employment, education, work programs, or community service. The rule defines which adults between the ages of 19 and 64 are required to demonstrate work requirement activities. 

• CMS endorses the implementation of the IFR as a rule that will promote economic stability, self-sufficiency, and independence. In reality, work requirements threaten the lives of millions of individuals with disabilities who depend on Medicaid for medical care, home and community-based services, long-term support, and more. The Congressional Budget Office estimates that these new requirements will not increase employment, but rather kick millions of people off Medicaid, leaving them uninsured.  

• The IFR provides a list of individuals that may be exempt from work requirements. Individuals who may be exempt include those who are pregnant, postpartum, disabled and medically frail, and more. However, states still lack clarity on the definition of medical frailty, and the rule has adopted a more restrictive definition of medical frailty and includes that the individual must also state that they lack capacity to work.  

• Additionally, the January 1st deadline increases the risks associated with IFR. This deadline leaves states rushing to implement the complex 400-page rule on a short timeline.  

Legislation Updates 

New ABLE Legislation 

Senators Jerry Moran (R-KS) and Chris Van Hollen (D-MD), joined by Senators Thom Tillis (R-NC) and Amy Klobuchar (D-MN), have introduced a bipartisan package of legislation to strengthen and expand ABLE accounts for people with disabilities. 

• The ABLE Tomorrow Act would modernize the ABLE program by eliminating the Medicaid payback requirement, increasing flexibility for contributions, protecting beneficiaries from immediate SSI suspensions when accounts exceed certain thresholds, allowing employer contributions, and expanding outreach and enrollment efforts. 

• The ABLE Match Act would create a federal matching program that provides up to $2,000 annually in matching contributions to eligible ABLE account holders. 

• The ABLE Direct Deposit Act would clarify that employers and government benefit programs can make direct deposits into ABLE accounts. 

An Achieving a Better Life Experience (ABLE) account is a tax-advantaged savings account that allows people with disabilities to save for qualified disability-related expenses while maintaining eligibility for important benefits such as SSI and Medicaid. ABLE accounts can also help protect access to other means-tested programs, including SNAP. 

Significant changes to the ABLE program took effect on January 1, 2026. Individuals whose disability began before age 46 may now be eligible to open an ABLE account, and the annual contribution limit increased to $20,000. Learn more about recent ABLE program updates here.  

HCBS Access Act Introduced 

The Home and Community-Based Services (HBCS) Act (H.R. 8540) was reintroduced in late April by Rep. Debbie Dingell (D-MI). The bill would amend Title XIX of the Social Security Act to strengthen and expand access to Medicaid home and community-based services (HCBS). 

Specifically, the legislation would require Medicaid coverage of HCBS and support efforts to expand access to these services. It would also authorize grants to strengthen the direct care workforce through recruitment, training, education, retention, and advancement initiatives, as well as provide support for family caregivers. 

The Autism Society of America strongly supports this legislation, which seeks to improve access to essential supports that enable people with disabilities to live and thrive in their homes and communities. 

Subminimum Wage Bill Advanced Committee 

The Restoration of Employment Choice for Adults with Disabilities Act (H.R. 8736), introduced by Rep. Glenn Grothman (R-WI), was approved by the House Education and Workforce Committee on May 21 by a party-line vote of 18-15. 

The bill would expand access to subminimum wage employment for workers with disabilities by lowering the minimum age for participation from 24 to 18. It would also repeal provisions enacted under the Workforce Innovation and Opportunity Act (WIOA) of 2014, which require individuals with disabilities to meet certain criteria and receive pre-employment services before entering subminimum wage employment. 

Supporters of the legislation argue it would increase employment options for people with disabilities and preserve opportunities that may otherwise be unavailable. Opponents contend that workers with disabilities should not be paid less than their peers for comparable work and that subminimum wage policies perpetuate inequities in the workforce. 

The Autism Society opposes this legislation and continues to advocate for the phaseout of subminimum wage and the expansion of competitive integrated employment opportunities for people with disabilities. We also support access to a range of meaningful community-based options, including day programs, volunteer opportunities, skills development programs, and other pathways that promote inclusion, independence, and quality of life.

New Report

COPAA Releases Report on Special Education Dispute Resolution 

The Council of Parent Attorneys and Advocates (COPAA) has released a new report, Special Education Dispute Resolution: A Critical Safeguard for IDEA’s Guarantee of Equal Education for Students with Disabilities, examining the role of IDEA’s dispute resolution process and opportunities to improve access without changing the law. 

Key findings include: 

• IDEA guarantees students with disabilities a Free Appropriate Public Education (FAPE) and provides dispute resolution options, including state complaints, mediation, due process complaints, and resolution meetings.  

• Due process serves as an important safeguard when disputes arise between families and schools, but barriers remain for families with limited financial resources, those who speak languages other than English, and those in rural areas.  

• Due process filings are relatively rare nationwide, and fully adjudicated hearings are even less common.  

• The report concludes that stronger oversight, technical assistance, funding, and implementation of existing law would better improve outcomes than changes to IDEA itself.  

• COPAA warns that weakening procedural protections could further limit access to safeguards for families who need them most.