Changes to the Federal and State Landscape Prompt New Understanding and Advocacy for People with Disabilities

katrina859
Nov 2
5 min read

By Katrina VanHuss, Past-President, The Arc of Hanover

While the general population of Virginia and the United States are by and large highly supportive of programs to benefit people with disabilities, the federal government has been less so and providing less.

In summary, here is how the landscape has and is changing for people with disabilities:

Cuts to the Social Security Administration mean slower disability claim processing.
Deep layoffs at the U.S. Department of Education have gutted federal special education oversight — likely leading to fewer programs, longer dispute resolution times, and more pressure on states to fill the gaps.
New Medicaid rules — including upcoming work requirements and possible funding caps — could make it easier for people with disabilities to lose coverage or access to providers.
Virginia has raised some provider rates and is trying to reduce risks tied to federal funding cuts. But if those cuts move forward, people with disabilities could face more delays, lost services, and fewer options for care.
Virginia’s “trigger clause” could automatically end Medicaid expansion if the federal monetary match drops below 90%, which would push many people with disabilities out of coverage altogether.

Diane Gallegos, Co-Executive Director/Mission of The Arc of Hanover, says, “The world is getting to be a harder place for people with intellectual and developmental disabilities. It’s going to take all of us to take care of the folks we love.”

Here is more detailed information on each topic:

Social Security Administration (SSA) Shake-Up

In Virginia and elsewhere, delays in Social Security disability determinations have become more severe after workforce cuts at the SSA. In Richmond, individuals with disabilities report prolonged waits just to have their claims processed.

Office of Special Education Programs (OSEP)

In a sweeping downsizing that has rattled the education world, the U.S. Department of Education has slashed its special education staff, raising urgent questions about its capacity to enforce the Individuals with Disabilities Education Act (IDEA) and support students with disabilities nationwide. AP News reported that 486 staff members were released, with the Office of Special Education Programs being left with only a handful of staff members.

In short, the federal machinery that once carried out oversight, technical assistance, research, and compliance in special education has been stripped almost to its bones. Education Week and K–12 policy analysts warn that the cuts to special education offices are so deep that the department’s capacity to operate is threatened.

Anticipated changes at the local level include:

Reduced Federal Support for Innovation – With limited staff, the department may scale back pilot programs, research on evidence-based practices, and dissemination of innovative models in special education.
Longer Resolution Times for Disputes – Complaints or mediation requests involving IDEA protections may take longer to process, leaving families waiting for resolution and services.
Increased Burden on States & Local Districts – States and districts will need to take on more administrative and oversight roles with less federal backstop — often without commensurate resources.
Heightened Risk of Noncompliance – The weakening of federal enforcement could embolden states or districts to underdeliver certain services, knowing oversight is less likely.
Potential Backlash & Litigation – A wave of lawsuits might arise from families or advocacy groups seeking to compel compliance where federal oversight has been diminished.

Changes to Medicaid

Statewide Coverage in General

In Virginia, the new federal Medicaid changes may cause coverage instability, service interruptions, and administrative burdens — especially for people with disabilities. While protections and exemptions exist on paper, the real impact will depend heavily on how the state defines, implements, and enforces them. Unless carefully managed, even well-intended reforms risk sliding into harmful gaps in care.

Work/“Community Engagement” Requirements

One of the most talked-about provisions in the new federal Medicaid rules is a requirement that many Medicaid recipients engage in 80 hours of work, education, or volunteer activities per month (or equivalent qualifying activities) to maintain eligibility. While the legislation includes exemptions for people with disabilities, it remains unclear how broadly or narrowly those exemptions will be implemented in Virginia.

State-level reporting lines suggest that the new law “will require those receiving Medicaid benefits to maintain full-time employment subject to twice-yearly verification” in Virginia — a verification threshold that could be difficult for people with disabilities. Currently, an annual verification process is in place.

For Virginia, a strain on agency capacity and increased paperwork — plus a higher chance of documentation delays — could mean more inadvertent loss of coverage among people with disabilities, especially those whose financial circumstances or health needs fluctuate.

Coverage loss or delays could interrupt access to therapies, durable medical equipment, home health, transportation, and attendant care. Loss of Medicaid means loss of access to prescription drugs, mental health care, preventive services, and more.

December 31, 2026, has been floated as the starting date for some work requirement provisions in states.

Provider Payment & State Funding Cuts

Virginia already took steps to shore up provider rates under its waiver system: On July 1, 2024, the state raised Developmental Disability (DD) waiver service rates (for group

homes, supported living, in-home supports, etc.) by 3% and also increased consumer-directed service facilitation rates.

But under the proposed federal cuts, Virginia faces pressure to reduce or cap state-directed payments, limit how much states can direct funds to managed care providers and reduce provider taxes (which help fund Medicaid).

Lower reimbursement rates, cuts in Medicaid support, or increased administrative burden might push some providers (especially in rural or underserved areas) to stop accepting Medicaid clients or scale back services.

In areas already facing provider scarcity, those with disabilities may find fewer therapy, specialist, or home-based providers available.

Trigger-Based Termination of Expansion Coverage

Virginia has a “trigger” clause in its budget language: If federal Medicaid funding (the monetary match) falls below 90%, the state could automatically end its Medicaid expansion coverage, which currently covers hundreds of thousands of Virginians.

Since expansion enrollees include people with disabilities whose income is just above ABD (Aged, Blind, Disabled) eligibility thresholds, a termination of expansion could knock many out of coverage.

The state has already moved to remove the automatic termination language in one budget amendment, indicating some legislative awareness of the risk.

The Arc of Hanover is continually monitoring the changes at the federal and state levels, and we consult with our partners at The Arc of Virginia with regularity. We are committed to serving self-advocates with intellectual and developmental disabilities and their families in Hanover County and will continue to report updates in these changes as they become available.

If you need help or information now, contact Diane Gallegos, Co-Executive Director/Mission at The Arc of Hanover. Email diane@thearcofhanover.or g or call 804-798-2400 (PRESS 1).

If you want to help people in Hanover County with intellectual or developmental disabilities via The Arc of Hanover, donate here.

If you are a disability self-advocate, parent, caregiver or concerned citizen interested in writing a blog post for The Arc of Hanover, please contact Sue Jeantheau, Communications Committee, at sue.jeantheau@thearcofhanover.org.