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In short:
State and territory leaders have written to warn they remain concerned over planned reforms to the NDIS.
The changes would give the NDIS minister powers to make rules over how funding can be spent, and shift responsibility for some cohorts to the states.
What's next?
The reforms are yet to pass federal parliament, and several rules would also need the sign-off of national cabinet.
South Australian Premier Peter Malinauskas has penned a letter on behalf of state premiers and chief ministers to oppose the federal government's planned reforms to save billions from the National Disability Insurance Scheme.
The states and territories are in a stand off with the federal government over its plan to shift some NDIS functions back to the states, as well as new rules that will limit how funding can be used.
The reforms will also crack down on dodgy providers and fraudulent claims within the NDIS, as the government hopes to rein in future costs by billions to keep the scheme sustainable in the years to come.
The states had already expressed deep doubt over the reforms, which they claimed "risk creating service gaps for people with disability" if what the NDIS could offer was changed before the states could introduce alternatives.
In particular, the Council for the Australian Federation cited concerns if eligibility was limited for groups such as children with autism before the states could establish their services, and concerns that the bill would give more power to the NDIS minister to make rules without appropriate safeguards.
In the letter to an inquiry examining the matter, Mr Malinauskas said the government's amendments to the bill had failed to satisfy those concerns.
"While we acknowledge the amendments made to the Bill in the House of Representatives, which go to some of the issues raised in our submission, many of our issues remain relevant and are yet to be addressed," Mr Malinauskas wrote.
"Consequently, we request you consider our initial submission in your current inquiry deliberations.
States and territories remain wholeheartedly committed to supporting disability system reform to improve the experience and outcomes of people with disability, including changes to strengthen the NDIS, but only if done properly."
The premiers have recommended the reforms should not commence until new state systems are agreed on and rules to change how funding can be used are developed in more detail.
The federal government is yet to find support for the NDIS reform bill to pass parliament, and NDIS Minister Bill Shorten expressed his anger at the Greens and opposition for teaming up to send it back to inquiry, further delaying its passage.
Mr Shorten said those delays would add another $1 billion to the running costs of the NDIS, according to estimates by the government actuary.
But the disability sector has raised significant concerns with the reforms at the Senate inquiry, alongside the ongoing concerns from state and territory leaders.
Even if the reforms are passed by parliament, new rules for how NDIS funding is spent will still have to be signed off at national cabinet by state and territory leaders.
Mr Shorten has been contacted for comment.