State of the States October 17, 2025
National – The federal government entered a shutdown on October 1, 2025, after Congress failed to pass a funding bill for the 2026 fiscal year. This lapse in appropriations led to the furlough of approximately 750,000 federal employees, while another 700,000 are continuing to work without pay. Government shutdowns occur when Congress does not agree on a budget or temporary funding measures. During a shutdown, non-essential discretionary federal programs close due to the lack of appropriated funds. The shutdown will end, and the government will fully reopen once Congress passes funding appropriations, which must then be signed into law by President Trump. Lawmakers also have the option to pass a temporary spending bill, known as a continuing resolution, to extend funding and allow more time for negotiations.
Medical costs in workers’ compensation are rising across most states, according to a new report from the Workers’ Compensation Research Institute (WCRI). The study examined 18 states and found that medical payments per claim increased between 5% and 14% in recent years. Notable increases were seen in Pennsylvania (14% in 2023), Delaware (7% annually from 2021–2023), and Wisconsin (6% annually), driven by changes in fee schedules and service pricing.
The National Safety Council (NSC) launched its fourth cycle of its MSD Solutions Lab grants to advance workplace safety and reduce musculoskeletal disorders (MSDs). The 2026–2027 cycle includes up to $300,000 in funding through two programs: the Research to Solutions (R2S) Grant, offering up to $50,000 per project, and the MSD Solutions Pilot Grant, offering up to $20,000 per project.
Idaho – The Idaho Department of Insurance (DOI) approved the National Council on Compensation Insurance (NCCI)’s recommendation to reduce workers’ compensation rates by 2.5%, effective January 1, 2026. This marks the ninth consecutive year of rate reductions in the state, reflecting ongoing improvements in projected claims costs and a continued decline in claims frequency.
Texas – The Texas Division of Workers’ Compensation (DWC) is accepting public comments on a proposal to repeal expired and invalid rules related to medical billing. The proposal targets the repeal of 28 Texas Administrative Code (TAC) Sections 133.4, 133.5, and 133.309. Comments will be accepted until 5 p.m. Central Time on November 10, 2025, and can be submitted via email to RuleComments@tdi.texas.gov. To learn more, check out TDI’s press release.
Stay connected to all relevant information in workers' compensation and pharmacy by subscribing to our weekly newsletter. For the previous wrap-up, please click here.
Other Posts You Might Be Interested In
Subscribe to email updates
Stay up-to-date on what's happening at this blog and get additional content about the benefits of subscribing.