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On the Hill: Budget Reconciliation Heads for the Senate Floor

June 24, 2025
Julia Grady

This week marks a critical juncture for the budget reconciliation bill, H.R. 1, as Republicans are still aiming to send it to President Trump’s desk by the July 4 deadline. Majority Leader John Thune (R-S.D.) intends to initiate procedural floor votes by mid-week, forgoing committee-specific markups.

Meanwhile, the Senate parliamentarian, Elizabeth MacDonough, continues reviewing many “Byrd bath” challenges to determine which provisions comply with budget reconciliation rules. Her rulings have already led to significant revisions, like blocking proposed SNAP cuts that would have shifted more food aid costs to states.

Last week, the Senate Committee on Finance (SFC) released its draft portion of the budget reconciliation package, which included harsher restrictions on Medicaid provider taxes, state directed payments, and work requirements. It also omitted a House provision that would mitigate cuts to Medicaid disproportionate share hospital payments and physician reimbursement.  Currently, the Senate parliamentarian is meeting with SFC members from both parties to rule on which provisions from their text comply with the Byrd Rule.

In addition, Republican Senators are in talks about adding text that would establish a fund to help rural hospitals negatively affected by changes to provider taxes and state directed payments (SDPs). Sen. Susan Collins (R-Maine) has been leading this effort, but text has not yet been made public. The association has engaged with Republican leadership, SFC staff, Sen. Collins, and others about how to best identify hospitals that would need assistance if the provider tax and SDP changes become law.

Committee Activity This Week

The House and Senate are in session Monday through Friday this week.

The House Committee on Energy and Commerce Subcommittee on Health will hold a hearing on Tuesday, June 24, at 10 am ET, on the fiscal year 2026 budget for the Department of Health and Human Services (HHS). Robert F. Kennedy Jr., secretary of the HHS, will serve as witness.

The House Committee on Ways and Means Subcommittee on Health will hold a hearing, titled, “Health at Your Fingertips: Harnessing the Power of Digital Health Data,” on Wednesday, June 25, at 9 am ET.

The Senate Committee on Health, Education, Labor, and Pensions will hold a hearing to consider the nomination of Susan Monarez to be director of the Centers for Disease Control and Prevention under the Department of Health and Human Services on Wednesday, June 25, at 10 am ET.

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