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County staff briefs Board on federal/state risks: Medicare fraud oversight, farm bill gap, Greenstone Colorado River water transfer and federal shutdown impacts

October 06, 2025 | Yuma County, Arizona


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County staff briefs Board on federal/state risks: Medicare fraud oversight, farm bill gap, Greenstone Colorado River water transfer and federal shutdown impacts
Yuma County’s intergovernmental affairs office briefed the Board on Oct. 6, 2025, about several state and federal developments that could affect county operations and regional stakeholders.

At the state level, staff summarized an Oct. 1 Arizona Senate Health and Human Services Committee oversight hearing on widespread Medicare fraud related to some recovery/sober‑living operations. Testimony highlighted disruptions to behavioral‑health access, impacts on indigenous populations and increased administrative burdens for legitimate providers. The committee requested a plan for action and measurable deliverables to address fraud and continuity of care.

On fiscal matters, staff noted that implementation of a major state bill (HR 1) could cost Arizona up to $850 million over two years depending on federal reimbursement and policy choices; the state’s short‑term revenue picture had recent technical spikes, with the Finance Advisory Committee scheduled to release updated projections Oct. 9. Staff emphasized uncertainty in midyear fiscal positions tied to the bill.

On federal matters, staff reported that Congress missed funding deadlines in early October, triggering a partial federal shutdown that had, at the time of the briefing, limited but growing operational impacts. County staff warned that prolonged shutdowns could delay federal reimbursements and grants, affect rural infrastructure programs, and strain local services.

Staff also briefed the Board on the Bureau of Reclamation’s reopened environmental‑impact statement (EIS) process for a proposed permanent transfer of more than 2,000 acre‑feet of Colorado River water annually to a nonentitlement urban area (a recent Greenstone proposal). County and city officials previously sued the Bureau and obtained a halt to an earlier approval; the county received notice of intent to prepare an EIS (Sept. 15 public notice) and a public comment period that runs through Oct. 15. Staff said the county would prepare and submit comments and asked the Board to authorize a county letter opposing the transfer; the Board authorized staff to draft and submit that comment.

Staff also said they were drafting a letter to the SBA ombudsman, at Vice‑Chairman Lyons’ request, to raise small‑business concerns tied to local PM‑10 air‑quality impacts. The Board instructed staff to move forward with both the Bureau of Reclamation comment and the SBA ombudsman outreach.

Staff concluded that, while immediate county impacts from the federal funding lapse were limited, prolonged shutdowns and farm‑bill uncertainty could slow reimbursements and federal grant flows that support county programs.

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