From DC: HUD Funding Pause, ACA Premium Tax Credits, Title VI Changes, Medicaid & SSI 2026, and More

December 12, 2025

From DC is Justice in Aging's weekly roundup of national news and resources about issues impacting older adults. To receive From DC in your inbox as soon as its published, sign up for our mailing list.

Here’s what we’re watching in Washington:

Need for Advocacy Still Urgent Despite HUD’s Pause of Overhaul to Homelessness Funding

This past Monday, shortly before a court hearing on its plan to overhaul the Continuum of Care (CoC) homeless assistance program, the Department of Housing and Urban Development (HUD) withdrew its plan to “make appropriate revisions.”

HUD’s recently released Fiscal Year (FY) 2025 CoC Notice of Funding Opportunity (NOFO) had outlined its intent to defund permanent supportive housing (PSH) and enact other unprecedented changes around homelessness funding. Two lawsuits were filed to challenge the NOFO, and litigation remains ongoing despite HUD’s latest action.

HUD has announced it will release an updated FY25 CoC NOFO with “technical corrections.” Congressional advocacy remains crucial, as the late timing alone of a new FY25 NOFO would result in major funding delays and gaps for CoC-funded projects, which would lead to people losing their housing and services. Congress can act now by renewing current CoC grants for another year.

Senate Fails to Extend Enhanced ACA Premium Tax Credits

As the December 31 expiration of the Affordable Care Act Marketplace enhanced premium tax credits (ePTCs) approaches, the Senate voted on two health care bills on Thursday. Neither received the 60 votes needed to pass.

The Lower Health Care Costs Act (S. 3385) introduced by Senator Schumer (D-NY) would extend ePTCs for three years. The bill failed by a vote of 51 to 48, with four Republicans joining all Democrats in voting yes.

The Health Care Freedom for Patients Act of 2025 (S. 3386), introduced by Senators Cassidy (R-LA) and Crapo (R-ID), also failed by a vote of 51 to 48, with no Democrats voting yes. This bill would not extend the ePTCs but instead provide health savings account funding to people with income below 700% of the federal poverty level who purchase high-deductible health plans.

The bill also includes cuts to Medicaid and health care that were taken out of H.R. 1 because they violated budget reconciliation process rules. These include cutting federal Medicaid expansion funding for states that use their own funds to cover health care for immigrants from 90% to 80%; ending the requirement that states provide Medicaid applicants with a 90-day reasonable opportunity period to verify their citizenship or immigration status; and prohibiting the use of federal Medicaid funding for gender transition services and excluding them as an essential health benefit for ACA Marketplace plans.

DOJ Rolls Back Title VI Anti-Discrimination Rules

This week, the Department of Justice (DOJ) ended long-standing regulations under Title VI that prohibited “any program or activity receiving Federal financial assistance” from having policies or practices that disproportionately discriminate against people based on their “race, color, or national origin.”

The Department issued this final rule without public input through notice and comment. The Supreme Court had previously found no private cause of action for disparate impact claims under Title VI and limited enforcement of those claims to the DOJ.

This new rule will end federal Title VI enforcement against seemingly neutral policies or practices that have a discriminatory effect, or “disparate impact,” on protected groups. In other words, disparate impact will no longer be grounds for discrimination claims under Title VI.

The Department’s actions remove important protections that ensure non-discriminatory access to countless federally funded programs relied upon by older adults. While the ability to bring claims of intentional discrimination under Title VI still exists, it will be increasingly difficult to address disparate impact discrimination.

DOJ and the various Offices of Civil Rights within federal agencies will no longer investigate disparate impact claims involving federally funded programs.

2026 Financial Eligibility Standards for Medicaid SSI, Spousal Impoverishment, MSPs, and LIS

The Centers for Medicare and Medicaid Services (CMS) published updated 2026 financial eligibility standards for Supplemental Security Income (SSI), spousal impoverishment protections, and Medicare Savings Programs (MSPs).

As of January 1, 2026, the minimum resource limit for three MSPs (Qualified Medicare Beneficiary, Specified Low-Income Medicare Beneficiary, and Qualifying Individual) will be $9,950 (single) and $14,910 (married). Fifteen states and the District of Columbia currently have more generous resource standards for MSPs.

In 2026, the 300% SSI income limit (special income rule) will be $2,982 per month, while the SSI resource limit remains at $2,000 for an individual. The bulletin also provides the 2026 spousal impoverishment standards, including the monthly maintenance needs allowance, community spouse housing allowance and resource standards, and home equity limits.

CMS also updated the Medicare Part D Low-Income Subsidy Resource and Cost-Sharing Limits. For 2026, the Low-Income Subsidy (LIS or Extra Help) resource limits are $16,590 (single) and $33,100 (married), and cost-sharing limits range from $0 to $12.65 per medication.