Summary
Over the weekend, the Senate adopted an amended budget resolution by a vote of 51-48. The resolution directs Senate Committees to find a minimum of $4 billion in savings, while the House is instructed to cut at least $1.5 trillion. It also features using the current policy baseline to make President Trump’s 2017 tax cuts permanent and increasing the debt ceiling by $5 trillion. The all-night vote-a-rama featured an amendment to strike the House directions for the Energy and Commerce Committee to cut $880 billion, which would most likely target Medicaid, but the amendment failed by a vote of 50-49, with Sens. Susan Collins (R-ME), Josh Hawley (R-MO), and Lisa Murkowski (R-AK) joining Democrats and Independents.
House Speaker Mike Johnson (R-LA) plans on putting the Senate-passed resolution on the House floor on Wednesday, and despite opposition from several Republicans, the resolution is expected to pass. Both chambers will then recess at the end of the week and return on April 28, where the committees of jurisdiction will begin drafting the budget reconciliation package pursuant to the resolution instructions.
HHS Layoffs
Following the Department of Health and Human Services (HHS) recent reorganization announcement and the coinciding layoffs, the Senate HELP Committee invited Secretary Robert F. Kennedy Jr. to participate in a hearing on Thursday on the Department’s restructuring. It is unclear whether Secretary Kennedy has agreed to participate yet. On the House side, House Energy & Commerce Democrat Leaders Rep. Frank Pallone (D-NJ) and Rep. Diana DeGette (D-CO) have also called on Chair Brett Guthrie (R-KY) to hold a hearing with Secretary Kennedy on the HHS reorganization.
State Nutrition Updates
HHS Secretary Robert F. Kennedy is supporting states looking to use waivers to modify child nutrition programs and the Supplemental Nutrition Assistance Program (SNAP) in line with the Make America Health Again (MAHA) agenda. West Virginia passed legislation supported by Secretary Kennedy banning seven food dyes from school lunches beginning August 2025. Secretary Kennedy also said during a speech that any waivers for states to restrict SNAP, including banning sugar-sweetened beverages, will be approved. Notably, the Department of Agriculture, not HHS, runs school meal programming and SNAP so USDA Secretary Brooke Rollins will oversee whether waivers are approved. The secretaries say that they are working together, but Secretary Rollins may be more receptive to pushback from food producers if they are negatively impacted.
Regulatory Update
The Office of Management and Budget (OMB) completed reviewing the final CY 2026 Medicare Advantage Rate Notice. We expect to see the final rate notice today. OMB is also reviewing the following:
- FY 2026 Medicare Payment Rules: Proposed rules updating payments for acute care hospitals and long-term care hospitals, hospice providers, inpatient psychiatric facilities, inpatient rehabilitation facilities, and skilled nursing facilities. The proposed rules are slated for April.