Summary
Congress returns this week with Speaker Mike Johnson (R-LA) setting the expeditious goal of finalizing the Republicans’ budget resolution before recessing again in three weeks. However, large differences remain between the House and Senate versions. The House resolution includes a minimum of $1.5 trillion in spending cuts and $4.5 trillion in tax cuts, while the Senate version includes $325 billion in new military and border security spending, along with energy policy changes. Apart from top-line numbers, the Senate also continues to disagree on the House’s plan to cut $880 billion from Medicaid.
In addition to budget reconciliation efforts, Republican leadership is beginning to discuss how to address the debt limit. Speaker Johnson is considering including the debt limit increase in reconciliation, while Senate Republicans favor a separate measure for the increase. The “x-date” in which the U.S. will default on its national debt has not yet been set, but the Bipartisan Policy Center has projected that this could occur between mid-July and October if Congress does not act.
Confirmation Hearings
The Senate Finance Committee is expected to mark-up the Centers for Medicare and Medicaid Services (CMS) Administrator nominee Dr. Mehmet Oz sometime this week, while the Food and Drug Administration (FDA) Commissioner nominee, Dr. Marty Makary, and National Institute of Health (NIH) Director nominee, Dr. Jayanta Bhattacharya could be considered on the Senate floor this week. The Trump Administration has yet to name a Centers for Disease Control and Prevention (CDC) Director nominee, after withdrawing Dr. Dave Weldon’s nomination, but floated replacements include former Texas Representative, Dr. Michael Burgess and Florida Surgeon General, Dr. Joseph Ladapo.
Regulatory Update
The Office of Management and Budget (OMB) completed reviewing an interim final rule regarding the unaccompanied children program. OMB is also reviewing the following:
- CY 2026 Medicare Advantage: Final rule making changes to Medicare Advantage and the Medicare Prescription Drug Benefit (Part D) and the CY 2026 Rate Notice, which is statutorily required to be released by April 7.
- 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.