The Senate passed its budget reconciliation bill, H.R. 1, around noon on Tuesday, July 1, following a marathon series of votes, with Vice President J.D. Vance casting the tie-breaking vote for passage. Senate Republicans worked to revise the bill in the days leading up to passage to secure support from Republican Senators not yet supportive of the bill and to comply with rulings from the Senate Parliamentarian, who struck down several provisions during the “Byrd bath” process. These adjustments were necessary to maintain the bill’s reconciliation status and ensure it could pass with a simple majority.
H.R. 1 now returns to the House for final consideration. However, growing concerns from several House Republican lawmakers may delay the timeline beyond Republican leadership’s goal of getting the bill passed through Congress by July 4.
Last week, Rep. David Valadao (R-Calif.) led a letter signed by 15 additional Republican House members urging Speaker Mike Johnson (R-La.) to protect Medicaid and hospitals, specifically highlighting the importance of state directed payments and provider taxes. While the letter signals a recognition of provider concerns, it ultimately endorses the House-passed version of H.R. 1 that would still impose serious harm on essential hospitals and the communities they serve.
The letter was also signed by: Rep. Juan Ciscomani (Ariz.), Rep. Rob Bresnahan (Pa.), Rep. Chuck Edwards (N.C.), Rep. Young Kim (Calif.), Rep. Andrew Garbarino (N.Y.), Rep. Michael Lawler (N.Y.), Rep. Jen Kiggans (Va.), Rep. Jefferson Van Drew (N.J.), Rep. Don Bacon (Neb.), Rep. Dan Newhouse (Wa.), Rep. Zach Nunn (Iowa), Rep. Robert Wittman (Va.), Rep. Nicole Malliotakis (N.Y.), Rep. Mariannette Miller-Meeks (Iowa), and Rep. Jeff Hurd (Colo.).
Last Week’s Hearings
The House Committee on Energy and Commerce Subcommittee on Health held a hearing on Tuesday, June 24, on the fiscal year 2026 budget for the Department of Health and Human Services (HHS) featuring HHS Secretary Robert F. Kennedy, Jr. (RFK), as a witness. Committee Republicans generally praised RFK’s willingness to challenge entrenched systems within HHS and supported his efforts to reduce waste, fraud, and inefficiency; several members criticized health-related budget expansions under the Biden Administration and defended H.R. 1 as a measure to reallocate funds responsibly. Conversely, committee Democrats repeatedly criticized RFK for cuts to federal health programs, especially those affecting the NIH, CDC, Medicaid, and the ACA. They argued that such cuts would exacerbate health disparities and lead to hospital closures.
The House Committee on Ways and Means Subcommittee on Health held a hearing on digital health data on Wednesday, June 25. Subcommittee Republicans focused on the potential of emerging health care technologies to improve access, reduce long-term costs, and enhance patient outcomes, particularly in rural areas. Subcommittee Democrats concentrated on H.R. 1, warning that it would lead to substantial Medicaid coverage losses and broader disruptions in both public and private health insurance markets. Concerns were raised about increased cost-sharing, work requirements, and cuts to key agencies like the NIH and FDA; subcommittee members emphasized that without stable coverage, the benefits of new technologies would be inaccessible to many, especially low-income or vulnerable populations.
Committee Activity This Week
The House and Senate are out of session Monday through Friday this week, with the Independence Day federal holiday being observed on Friday, July 4.
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