The Sept. 30 deadline for Fiscal Year 2026 appropriations is approaching quickly. With little time to finalize funding, lawmakers are likely to turn to a continuing resolution (CR) – a stopgap funding measure to prevent a government shutdown.
A CR would need to address several health policy extenders relevant for essential hospitals, including Medicaid Disproportionate Share Hospital (DSH) cuts, Medicare telehealth flexibilities, the Hospital-at-Home waiver program, Children’s Hospital Graduate Medical Education, Conrad 30 Waivers, and Community and Teaching Health Center funding.
America’s Essential Hospitals continues to urge Congress to eliminate the $8 billion cut to Medicaid DSH payments set to take effect on Oct. 1, along with the remaining two years of reductions. Our association-led sign-on letter remains open for last-minute submissions.
Separately, on Sept. 5, a coalition of health care groups, including America’s Essential Hospitals, sent a letter to Senate Majority Leader John Thune, (R-S.D.) Senate Minority Leader Chuck Schumer (D-N.Y.), House Speaker Mike Johnson (R-La.), and House Minority Leader Hakeem Jeffries (D-N.Y.) urging Congress to address the DSH cuts.
340B
A bipartisan letter led by Reps. Dusty Johnson (R-S.D.) and Doris Matsui (D-Calif.) and co-led by Reps. Tracey Mann (R-Kan.) and Debbie Dingell (D-Mich.) earned 166 bipartisan signatures and was shared with HHS Secretary Robert Kennedy, Jr. before the Sept. 8 comment period deadline regarding the 340B Rebate Model Pilot Program.
The letter specifically notes concern that the pilot program would “severely damage… safety net hospitals… that rely on the 340B program to provide comprehensive, quality services to their patients and communities.”
Key Hearings
On Sept. 3, the House Committee on Energy and Commerce Subcommittee on Health held a hearing to explore the use of artificial intelligence to advance American health care. Subcommittee Republicans emphasized the opportunities that AI presents to improve health care delivery, reduce administrative burdens, and expand patient access, particularly in rural areas. Subcommittee Democrats called for stronger oversight, investigations, and accountability for decisions by the Trump administration and Secretary Kennedy that they argue are undermining the public health workforce; they also highlighted the need for safeguards to protect vulnerable populations, including children and minority patients.
The Senate Committee on Finance held a Sept. 4 hearing on President Trump’s 2026 health care agenda with Secretary Kennedy serving as witness. Committee Republicans largely praised the administration’s focus on chronic disease management, rural health investment, and efforts to curb fraud and abuse. Committee Democrats sharply criticized Kennedy as untrustworthy, anti-science, and harmful to public health; they charged that his policies have worsened affordability, destabilized hospitals, and undermined scientific consensus, and H.R. 1 was criticized for stripping coverage and cutting Medicaid.
Committee Activity This Week
Both the House and Senate are in session Monday through Thursday this week, with the latter also convening on Friday.
The House Committee on Appropriations will meet for a markup of the Labor, Health and Human Services, Education, and Related Agencies Bill on Tuesday, September 9, at 11 am ET.
Join the Federal Action Network Today!
Stay connected to the latest from Washington. Join our Federal Action Network (FAN) — free for members — and gain exclusive access to advocacy expertise and updates.
Author