Federal and state policy activity in June 2026 highlights accelerating momentum across AI governance, healthcare enforcement, and workforce regulation. Federal actions include a new executive order advancing artificial intelligence (AI)-enabled cybersecurity modernization and a Department of Justice (DOJ) health care fraud takedown targeting credential integrity. At the state level, updates span rural health funding, licensure compacts, behavioral health standardization, and scope-of-practice changes, reflecting continued focus on modernization, compliance, and workforce flexibility. These major headlines are only half the story. Read the full update to equip your team with the insights needed to stay compliant and ahead of the curve.
Federal activity
AI Innovation meets cybersecurity: Key takeaways from the new executive order
On June 2, President Trump signed Executive Order 14409, Promoting Advanced Artificial Intelligence Innovation and Security, aimed at accelerating AI innovation while strengthening the nation’s cybersecurity posture. The order reinforces the administration’s commitment to supporting AI development through voluntary safeguards and collaboration rather than prescriptive regulation.
Key provisions include:
- Accelerating cybersecurity modernization across federal agencies, including national security and defense systems, within 30 days.
- Expanding access to AI-powered cybersecurity tools for federal and state governments.
- Establishing a centralized clearinghouse to improve the identification and remediation of software vulnerabilities.
- Creating a voluntary framework that allows trusted government partners limited pre-release access to advanced AI models, with review timelines shortened from 90 to 30 days. Notably, the executive order does not establish federal licensing, certification, or pre-approval requirements for AI systems. At the same time, it highlights growing concerns around AI-enabled cyber threats and directs the DOJ to prioritize the investigation and prosecution of AI-related cybercrime and malicious hacking activities.
AERO initiative signals stricter audit enforcement across healthcare programs
The U.S. Department of Health and Human Services (HHS) launched the Audit Enforcement and Risk Oversight (AERO) initiative, a department-wide effort using artificial intelligence to strengthen oversight of federal healthcare dollars and reinforce accountability across states, providers, and other grant recipients.
At its core, AERO applies AI-driven analytics to years of federal audit data to flag repeat findings, unresolved compliance issues, and late or missing audit submissions tied to HHS-funded programs.
For the healthcare sector, the implications are direct. State Medicaid agencies, public health departments, hospitals, academic medical centers, and other federally funded entities should expect increased scrutiny of long-standing audit findings and internal control gaps that have not been fully resolved.
In communication to all 50 governors and state treasurers, HHS cautioned that ongoing audit noncompliance may lead to enforcement actions, including potential withholding of Medicaid payments, restrictions on federal grant funding, and other financial consequences.
Nursing coalition sues U.S. Department of Education over exclusion of advanced nursing degrees from federal “professional degree” loan definition
A coalition of major nursing organizations, including the American Nurses Association, the American Association of Nurse Anesthesiology, the American College of Nurse-Midwives, and other specialty advanced practice groups, filed a lawsuit in June 2026 in federal court in Washington, D.C. against the U.S. Department of Education.
The lawsuit challenges a final rule that excludes advanced nursing degrees from the federal definition of “professional degree” programs for purposes of federal student loan borrowing limits. The organizations argue the rule unlawfully minimizes post-baccalaureate nursing education and ignores the critical role of advanced practice nurses in addressing persistent workforce shortages.
They further contend that the Department of Education failed to adequately consider widespread public comments from nurses, patients, and healthcare stakeholders during rulemaking. The coalition is seeking to overturn the policy, restore access to full federal loan eligibility for advanced nursing programs, and prevent new financial barriers that they say could reduce access to care, especially in rural and underserved communities.
National health care fraud takedown, June 2026
On June 23, 2026, the DOJ announced a major nationwide enforcement action targeting fraud across Medicare, Medicaid, TRICARE, and other federal health programs.
The takedown included:
- 455 defendants charged
- 90+ physicians and licensed professionals implicated
- $6.5B+ in alleged fraudulent claims
- Cases spanning 56 federal districts and 45 states/territories
- Participation from 50 state Medicaid Fraud Control Units (record coordination)
- $182M+ in assets seized
- Multiple international arrests tied to large-scale schemes
Key fraud patterns included billing fraud involving home health, telehealth, and services not rendered, along with illegal prescribing schemes such as pill mills and controlled substance diversion. The takedown also highlighted kickback arrangements and growing concerns around credential and identity fraud, including the use of false or stolen provider identities, fraudulent nursing credentials in Medicaid billing, and impersonation of licensed clinicians.
Notable provider-related cases included a nurse practitioner who billed Medicare for services while reportedly incarcerated, as well as multiple cases tied to falsified documentation and misuse of provider credentials.
Overall, this was one of the largest coordinated health care fraud enforcement actions in DOJ history, with continued emphasis on billing abuse, controlled substance violations, and escalating concerns around provider identity and credential integrity fraud across nursing and other licensed professions.
State updates
As of mid-2026, over 20 states are in session or have active interim committee work, while others are preparing for 2027 legislative cycles. In 11 states, the 2026 gubernatorial election cycle will continue to shape the policy environment, driving increased activity across healthcare, workforce, Medicaid, and regulatory reform. Overall, states are operating in a high-engagement, election-influenced landscape focused on workforce mobility, licensure, and healthcare system modernization.
Compacts
Delaware, SB 216
Delaware SB 216 enacted and effective June 10, 2026, authorizes Delaware’s participation in the Respiratory Care Interstate Compact (RCIC), enabling eligible respiratory therapists to practice across participating compact states through a streamlined multistate privilege. Respiratory therapists in Delaware are regulated by the Board of Medical Licensure and Discipline, which will oversee implementation of the compact. The compact has not yet reached broad multi-state operational adoption because it is still very much in the early stages of rollout.
Modernization of statewide technology governance & funding
Minnesota, Senate File 334
Governor Tim Walz signed Senate File 334 into law in late May, with the legislation taking effect immediately. The bipartisan measure advances a more coordinated and modern approach to delivering human services across Minnesota.
The law establishes a new governance framework to guide long-term systems modernization, including the creation of a Human Services Systems Modernization Advisory Council. The council will convene state leadership, county officials, and key stakeholders to align on technology priorities and strengthen coordination across future IT investments.
SF 334 also provides dedicated funding to support critical state-level technology upgrades and creates a grant program to enable counties to advance their own modernization efforts. Together, these investments are designed to improve interoperability, reduce fragmentation, and accelerate the shift toward more efficient, data-driven service delivery across the human services ecosystem.
While the law is effective immediately, several key components phase in over time. Advisory council appointments are expected by August 15, 2026, with the first council meeting anticipated by Sept. 15, 2026. Broader funding implementation and grant distribution are scheduled to begin in Fiscal Year 2027, allowing time for governance structures and program frameworks to be fully established.
Behavioral health licensure and continuing education standardization
California, AB 1598
California A.B. 1598 passed its first Senate hearing in late May and would modernize and standardize licensure, registration, examination, and renewal requirements for behavioral health professions regulated by the Board of Behavioral Sciences. The bill strengthens alignment of continuing education (CE) requirements across license types, reducing variability in categories, formats, and approval standards.
It also extends the licensure completion window from six to seven years, reinforcing a more lifecycle-based approach to supervised practice tracking. In addition, the legislation updates renewal and extension provisions that may increase documentation requirements tied to ongoing competency, including supervision attestations and supplemental training, while further clarifying CE provider and delivery standards.
Rural health transformation fund
Arizona, HB 4160
Arizona HB 4160, enacted and effective June 13, 2026, establishes the Arizona Rural Health Transformation Fund, creating a dedicated mechanism to receive and administer federal Rural Health Transformation Program (RHTP) funding. The fund will be managed by the Arizona Health Care Cost Containment System (AHCCCS), the state’s Medicaid agency.
To ensure stakeholder engagement and transparency, the legislation requires AHCCCS to conduct three public meetings across northern, central, and southern Arizona before any funds may be distributed. These meetings are intended to gather input from healthcare providers, community leaders, and other stakeholders to help inform funding priorities and guide investments aimed at strengthening rural healthcare infrastructure, access, and workforce capacity throughout the state.
Licensure pathways
Michigan, HB 6060
Michigan HB 6060 is pending legislation that proposes updates to the state’s endorsement pathway for out-of-state and Canadian applicants by streamlining how experienced professionals can become licensed in Michigan. Specifically, it would apply to individuals who have held an active license in another U.S. state or in Canada for at least one year, and who meet substantially equivalent standards. The legislation also sets a clear processing timeline, requiring the Department of Licensing and Regulatory Affairs (LARA) to issue a decision within 90 days for eligible applicants. Notably, the bill excludes applicants who obtained their credentials through interstate licensure compacts.
Nursing scope of practice
New York S3822/A1942
New York S3822/A1942 proposes to expand the role of nurse practitioners by clarifying that they may conduct specific medical evaluations within their established scope of practice. This includes acts such as the authority to provide medical clearances, certifications, and ability to complete other required forms for certain permits and exemptions.
Regulatory rulemaking
Nevada State Board of Osteopathic Medicine – proposed rulemaking
The Nevada State Board of Osteopathic Medicine has proposed amendments to continuing medical education (CME) and licensure renewal requirements. Key changes include:
- Increasing total CME requirements from 35 to 40 hours per renewal cycle.
- Increasing required Category 1A CME hours from 10 to 20 hours.
- Increasing mandatory education related to controlled substance misuse, opioid prescribing, and addiction from 2 to 4 hours.
- Transitioning the Physician Assistant (PA) licensure renewal cycle from annual to biennial renewal.
- Updating PA CME requirements to align with the extended two-year renewal period.
- Implementing various revisions to the licensure renewal fee schedule. If adopted, these changes would increase educational requirements for licensees while aligning CME obligations and renewal processes with the proposed biennial renewal framework for Physician Assistants.
Stay ahead with us
Through our unified solutions, Propelus CE BrokerTM, Propelus EverCheckTM, and Propelus ImmuwareTM, Propelus provides the vital infrastructure that connects boards, professionals, and employers in a single, secure ecosystem. As a leading CE tracking platform for license renewal compliance, in an evolving 2026 landscape, you need a partner who doesn’t just react to change, but anticipates it. We are dedicated to ensuring your workforce is not just qualified and compliant with CE, and strategically positioned for whatever comes next. Get in touch with Propelus CE Broker to learn how we can support your workforce.