TALKING POINTS ON CHANGES TO SELECT FEDERAL PROGRAMS

Changes to federal programs have been made over the last 6 months through the Continuing Resolution in March, the Reconciliation Act on July 4, the recissions passed by Congress, DOGE cuts and a plethora of Executive Orders.  The details of these changes are often obscure and not explained in detail. The information gives a general overview of the changes being implemented in several programs that could impact activities at Community Action.

  • HEAD START

Head Start is overseen by the Office of Head Start (OHS), which is part of the Administration for Children and Families (ACF) within the U.S. Department of Health and Human Services (HHS). ACF focuses on child welfare, early childhood education, and family support programs — making it the natural home for Head Start.

The Reconciliation Bill includes an administrative policy shift that bans undocumented children from enrolling in Head Start.

Although this likely affects a small number of children, it marks a major policy change with ramifications for legal interpretation, program access, and administrative burdens to document citizenship.

While Head Start wasn’t singled out for direct funding cuts at this point, these recent administrative changes require all participants to verify immigration status, increasing paperwork and possible legal scrutiny, potentially reducing program enrollment and complicating eligibility verification processes.

In addition, five of the ten Head Start regional offices were abruptly closed on April 1, 2025, as part of a major restructuring by the U.S. Department of Health and Human Services (HHS). These offices supported nearly 800 grantees and 318,000 funded slots across 22 states and 5 territories. And

  • There’s no clear transition plan, leaving grantees uncertain about who to contact for technical assistance or grant processing.
  • Some programs have already reported delays in funding, jeopardizing payroll, rent, and service continuity.
  • Staff layoffs and consolidation have raised concerns about loss of local expertise and weakened oversight.

Garrett County now reports to the regional office in Atlanta instead of Philadelphia. The staff at the Atlanta office is now grossly overworked because of these consolidations. With core federal staff being eliminated and regional presence drastically reduced, program oversight, technical support, and funding coordination for providers are significantly hampered. Federal funding for FY2026 is unclear at this point.

  • MEALS ON WHEELS

Meals on Wheels isn’t just about nutrition—it’s a lifeline for isolated seniors. Volunteers often provide the only human contact some recipients have, helping prevent medical emergencies and reducing long-term care costs. Meals on Wheels is administered by the Department of Health and Human Services, by the Administration for Community Living (ACL). 

ACL is focused on older adults and people with disabilities, supporting independent living, community inclusion, and long-term services. It administers programs like:

  • Meals on Wheels and other senior nutrition services
  • Independent Living Services
  • Assistive Technology programs
  • Protection and Advocacy systems for people with disabilities

In 2025, the Trump administration announced a major restructuring of HHS, including the elimination of ACL as a standalone agency. Its responsibilities, including Meals on Wheels funding, are being redistributed to other HHS divisions like:

  • The Administration for Children and Families (ACF)
  • The Centers for Medicare and Medicaid Services (CMS)
  • The Office of the Assistant Secretary for Planning and Evaluation (ASPE)

Advocates warn this could disrupt services and weaken oversight, especially since ACL was the only federal agency solely focused on aging and disability policy.

In March 2025, Congress passed the Full-Year Continuing Appropriations and Extensions Act (H.R. 1968), which extended government funding through September but did not increase allocations for senior nutrition programs like Meals on Wheels. While technically not a funding cut, the flat funding levels are considered a de facto reduction due to inflation and rising operational costs, especially for food, fuel, and labor.

In addition, because of reorganizations taking place the HHS, approximately 40% of the staff within the Administration for Community Living (ACL)—the office responsible for overseeing programs like Meals on Wheels—has been cut. That translates to dozens of key positions being eliminated in D.C., including those managing grant administration, program evaluation, and public communication.

Forbes noted ACL had about 200 staffers at the start of 2025; removing 40% dealt a serious blow to its operational capacity.  Local providers warned that losing ACL staff and offices jeopardized funding, delayed grants, and dismantled essential federal programs. Funding for Meals on Wheels is uncertain for FY2026.

  • FEDERAL RENTAL ASSISTANCE PROGRAMS
  • The Reconciliation bill, in coordination with the Department of Government Efficiency (DOGE), eliminated HUD staff involved in administering rental assistance, including oversight and enforcement functions.
  • This leaves many programs in limbo, as HUD no longer has personnel to distribute or monitor funds nationally.
  • Some states are trying to take over administration, but delays and errors have already been reported.
  • Shifts responsibility for distributing federal housing funds toward state-level block grants.
  • This mirrors the block grant model used for welfare reform in the 1990s.
  • Critics say this could reduce accountability and lead to inconsistent aid depending on state politics.
  • HOMELESS SERVICES

HUD’s Continuum of Care (CoC) Program

  • HUD continues to fund the CoC program, which supports community-based nonprofit, local government, and tribal efforts to quickly rehouse individuals and families experiencing homelessness while minimizing trauma
  • HUD recently released funding opportunities (CoC Builds), and the FY 2024/25 award announcement timeline continues, with funds to be obligated by late 2027.
  • The upcoming FY 2026 federal budget proposes discontinuing CoC funding in favor of ESG grants, raising concerns about diminished local control and reduced support for permanent supportive housing

Emergency Solutions Grants (ESG)

  • ESG provides flexible federal funds for street outreach, shelter, rapid rehousing, and homelessness prevention.
  • The FY 2026 proposal would blend CoC into ESG grants at the state level. Critics warn this could reduce competition-based allocations that fund successful local programs
  • EMERGENCY FOOD AND SHELTER PROGRAMS

The Emergency Food Assistance Program (TEFAP)

  • Administered by USDA, TEFAP allows states to distribute USDA-sourced food to food banks, pantries, and soup kitchens at no cost to low-income individuals.
    • USDA has paused approximately $500 million in TEFAP commodity shipments sourced via the Commodity Credit Corporation
    • Plenty of food banks report significant shortages—e.g., Hudson Valley food bank expects nearly 2 million fewer meals due to these cuts
    • Cuts combined with the end of pandemic-era funding are worsening access to nutritious food

The Emergency Food and Shelter Program (EFSP)

Operated by FEMA under the McKinney-Vento Act, EFSP delivers grants to local boards supporting emergency food, shelter, rent/mortgage, utilities, transportation, etc.

Funding for FY 2025 has been indefinitely frozen, delaying promised allocations (over $117 million in some regions).  Some of these funds may be reprogramed to support ICE detention centers.

More than 45 House Democrats have urged FEMA to restore full funding immediately.

  • INDEPENDENT LIVING SUPPORT

Administration for Community Living (ACL)

  • In March 2025, HHS began dismantling ACL—shifting its responsibilities to other divisions. Around 40% of ACL staff have received layoff notices, causing significant uncertainty around program delivery and oversight
  • Despite internal changes, ACL-administered services—including Centers for Independent Living (CILs), elder justice, and assistive tech—are still authorized under federal law. However, clarity is lacking on future fund distribution and service continuity.
  • LOW INCOME HOME ENERGY ASSISTANCE PROGRAM

The Low-Income Home Energy Assistance Program (LIHEAP), helps low-income households pay both winter and summer utility bills.

In April 2025, DOGE fired the entire federal staff administering LIHEAP at the Department of Health and Human Services (HHS). That included about 15–25 employees responsible for distributing over $4 billion in aid annually.

This move sparked concern about:

  • $378 million in summer energy assistance funds in FY2025 funding remains undistributed and in limbo, with many states unable to provide crucial heating/cooling assistance.
  • In multiple states, operations stalled entirely—e.g., Pennsylvania paused its program mid-April due to lack of federal oversight.
  • Over 50,000 households in West Virginia alone are left without continued aid, as state officials scramble to assess and respond.
  • Without staff to distribute aid, families are facing utility shutoffs, health emergencies, evictions, and even child welfare risks as fall and winter approach.
  • Disruption to weatherization programs that improve energy efficiency in low-income housing
  • Potential harm to millions of vulnerable households, especially during extreme weather
  • SNAP

The Reconciliation bill reduces federal SNAP funding by $186 billion over 10 years, roughly a 20% drop in total funding, removing around 6 billion meals annually

This represents the largest cut to SNAP since the program began in 1964

Work requirements now apply to all able-bodied adults aged 18–64, up from the previous 18–54 cutoff. Recipients must complete 80 hours per month of work or volunteer service. The complicated administrative reporting requirements for complying with these new reporting requirements could result in fewer people receiving benefits.

This expansion could jeopardize access for 2 – 6 million people nationwide

For the first time, states are forced to contribute up to 15% of SNAP benefit costs, especially if they exceed error thresholds, beginning October 2027

Administrative burdens are increased, with states now covering 75% of administrative costs, up from 50%. This could jeopardize funding as state budgets become tighter.

Most changes are phased in gradually, with major financial impacts starting in 2027–2028.

Work requirements and cost-shifts give states some lead time, but increased pressure will build over several fiscal years

The Trump administration says that healthy eating is a priority. Its “Make America Healthy Again” report even cited poor diet as a cause of childhood illnesses and chronic diseases. Yet President Trump’s “big, beautiful bill,” which he signed into law on July 4, will make it harder for people to qualify for the federal Supplemental Nutrition Assistance Program (SNAP) by expanding existing work requirements. The law also cut $186 billion — or about 20% of the food assistance program’s budget through 2034. According to an analysis by the Congressional Budget Office, that means about 3 million people will lose their SNAP benefits, and millions more will see their benefits reduced. Without that assistance, many Americans will have a harder time accessing nutritious food. “People are going to have to rely on cheaper food, which we know is more likely to be processed, less healthy,” said Kate Bauer, associate professor of nutritional sciences at the University of Michigan.

  • FEDERAL FOOD PROGRAMS

The Local Food for Schools Cooperative Agreement Program (LFS) is a federal initiative to strengthen regional food systems by helping schools and childcare institutions buy “local and regional” agricultural products—encompassing fruits, vegetables, dairy, meat, grains, and beverages—from small, underserved, and in-state/local producers (typically within the state or within approximately 400 miles) 

As of 2025, the Local Food for Schools Cooperative Agreement Program (LFS) has been terminated by the USDA, marking a major shift in federal support for local food systems:

  • In March 2025, the USDA notified states that $660 million in funding for LFS was canceled for the year. Over 40 states signed agreements to participate in LFS and the cancellation affects millions of students, especially those relying on free or subsidized school meals
  • The decision also affected the Local Food Purchase Assistance (LFPA) program, which supported food banks, pantries, tribal providers, and local producers
  • These cuts were part of broader federal spending reductions under the Trump administration and Elon Musk’s Department of Government Efficiency (DOGE)
  • School districts report losing access to fresh, locally sourced produce and meats, which helped control costs and support small farmers
  • Local producers and food hubs are losing a reliable revenue stream, threatening small farm viability
  • The program had been a lifeline for introducing healthier, regionally grown foods into school meals
  • Governors and legislators across party lines have criticized the cuts, citing harm to children, farmers, and rural economies.