This week’s federal policy update highlights major developments affecting how communities are counted, supported, and able to thrive. From changes to the 2026 Census test and limits on small-business loans for green card holders, to federal budget decisions, immigration court rulings, and new public health initiatives, these updates show shifting federal priorities with real impacts on working families, immigrants, and local communities.
Affordable Care Act Subsidies Update: There is still no movement in the Senate on ACA premium tax credits—leaving millions of families at risk of higher health insurance costs. That makes your voice even more critical. Contact your Senators today and remind them why protecting ACA tax credits matters. Click HERE to take action.
Citizenship Question and Reduced 2026 Census Test Raise Concerns for 2030 Count
A Census Bureau February 3 Federal Register notice proposes that the census 2026 test, a large-scale rehearsal for the 2030 Census, be scaled back and also include a citizenship question, raising serious concerns because the Constitution requires counting every person living in the United States, regardless of citizenship. A similar question proposed during the first Trump administration was struck down by the Supreme Court for likely suppressing participation and undermining an accurate count. Including it in the 2026 test could discourage immigrants and minority communities from responding, skewing the results of the test and complicating preparations for the full 2030 Census. The question also has little relevance to key census functions: for example, a student’s citizenship status does not affect how much federal funding a school receives.
These risks are amplified by the Bureau’s sharp reduction of the 2026 test, which will now be conducted only in Huntsville, Alabama, and Spartanburg, South Carolina, instead of six locations. The test will focus mainly on online response rates and a new model in which U.S. Postal Service employees, rather than temporary census workers, visit households to collect information.
Several critical elements were cut from the original plan, including testing in tribal and rural communities and non-English online response options such as Spanish and Chinese. Without robust testing in diverse communities, the Bureau may miss problems that disproportionately affect people who are historically undercounted. This risk is especially pronounced because the 2030 Census will implement the new combined race and ethnicity standards under Statistical Policy Directive No. 15, including the Middle Eastern and North African (MENA) category that will count Arab Americans for the first time. Together, the citizenship question and reduced testing threaten to produce an inaccurate census, misinform political representation, and skew the distribution of federal resources.
New Federal Appropriations and Rules Undercut Family Supports
Federal Budget Grows Despite Cuts to Programs Supporting Families: Congress has approved, and President Trump has signed, a long‑term spending bill that brings an end to the partial government shutdown and secures federal funding for most agencies through Sept. 30, 2026. Funding for the Department of Homeland Security was extended only to February 13 to allow additional time for congressional negotiations over immigration enforcement and civil rights protections.
The $1.2 trillion funding bill includes $839 billion for the military while allowing major cuts or expirations to domestic programs, including ACA subsidy extensions and SNAP. While spending on many programs supporting working families has been reduced, overall federal spending rose, ultimately adding to the deficit. The increase is driven in part by prior tax cuts for high-income earners and corporations that continue to limit federal revenue. As a result, the budget expands total spending while scaling back measures that support access to healthcare, nutrition, and other essential resources for families and children, reflecting a shift in federal priorities.
Small‑Business Loans Cut Off for Green Card Holders
The Small Business Administration announced it will block lawful permanent residents from accessing SBA-backed small-business loans starting March 1, reversing long-standing rules that allowed green card holders to qualify and eliminating the prior allowance for up to 5% non-citizen ownership. SBA loans, including the 7(a) and 504 programs, provided roughly $44.8 billion in financing in fiscal year 2025, making them one of the largest sources of affordable capital for small businesses nationwide.
By limiting eligibility to U.S. citizens, the rule cuts off a critical source of funding for immigrant entrepreneurs, who are twice as likely to start a business as native-born Americans. Even businesses with a small share of green card ownership may now lose access to SBA financing, potentially slowing startup formation, job creation, and local economic development. Restricting these loans could reduce innovation and competitiveness by excluding diverse and immigrant-led businesses that rely on these funds to grow.
Federal Courts Continue to Limit Recent Immigration Directives
Court Blocks One‑Week Notice Rule for Lawmaker Visits to ICE Facilities: A federal judge ruled that the Department of Homeland Security likely broke the law by requiring members of Congress to give one week’s notice before visiting immigrant detention facilities. Even though Homeland Security Secretary Kristi Noem issued a directive last month reimposing the policy claiming it would be enforced solely on funds from the “One Big Beautiful Bill Act,” the court found DHS relied on funds Congress had explicitly barred from being used to restrict access. The ruling only applies to the 13 Democratic lawmakers challenging the policy, restoring their ability to conduct announced oversight visits to ICE detention facilities—setting a legal check on executive attempts to impose limits via alternative funding.
Judge Blocks Haiti TPS Termination, Citing “Racial Animus” and Officials’ Remarks: A federal district court in Washington, D.C. has paused the Trump administration’s attempt to end TPS for roughly 350,000 Haitian nationals, finding the record “strongly suggests” DHS Secretary Kristi Noem’s November 2025 decision was partly driven by racial animus and found the rationale conflicted with evidence of Haiti’s unsafe conditions. The judge cited Noem’s statements calling immigrants “killers, leeches, and entitlement junkies,” along with comments such as, “Why can’t we have some people from Norway… let us have a few from Denmark” by President Trump, contrasting those remarks with Haiti’s predominantly Black population.
The ruling keeps TPS status, work authorization, and protection from deportation in place for Haitian holders while litigation continues. Because the order is a temporary stay, the administration may appeal, but the court emphasized that ending TPS requires a lawful assessment of conditions in Haiti—which, it found, the government failed to do.
Supreme Court to Hear Challenge to Birthright Citizenship: The U.S. Supreme Court will hear Trump v. Barbara on April 1, a case challenging an executive order attempting to end birthright citizenship for children born in the U.S. to parents who are neither citizens nor lawful permanent residents. Because of the Court’s schedule, a ruling is unlikely before late June. A federal district court has already blocked the order, meaning birthright citizenship remains fully intact while the case proceeds.
At issue is whether the executive branch can unilaterally reinterpret the 14th Amendment’s Citizenship Clause, which grants citizenship to all persons born in the United States and “subject to the jurisdiction thereof.” This clause was included in 1868 in the wake of emancipation to guarantee equal rights to all Americans regardless of ancestry. Upholding the order would require a major constitutional rewrite and expansion of presidential power. Such an outcome is considered unlikely, so the longstanding guarantee of birthright citizenship is expected to continue as the Court deliberates.
HHS Overhauls Behavioral Health Grants, Announces $100 Million Recovery Initiative
The Department of Health and Human Services is reorganizing addiction and mental health grant programs, including those run by the Substance Abuse and Mental Health Services Administration (SAMHSA). This reorganization includes the announcement of a new $100 million initiative to support treatment, recovery services, and prevention outlined in the January 29 “Addressing Addiction Through the Great American Recovery Initiative” Executive Order. States and providers face uncertainty over eligibility, timelines, and the continuation of existing grants as the reorganization moves forward. The new promised funding shows ongoing federal support for some behavioral health, but the lack of clear guidance has raised concerns about short-term disruptions as public health funding becomes more centralized and sporadic.