On the Hill: Shut Down Showdown

The federal government will shut down on Oct. 1 unless congressional leaders agree on a stopgap spending measure. Republicans are pushing for a "clean" continuing resolution (CR) that would extend current funding levels through November 21, while Democrats are seeking to include an extension of Affordable Care Act subsidies set to expire at the end of 2025, limit Trump's ability to rescind spending, and roll back Medicaid-related cuts from H.R. 1.

The Department of Health and Human Services (HHS) updated its standard contingency plan, outlining which activities and personnel may continue during an appropriations lapse. In the Centers for Medicare & Medicaid Services (CMS) plan, CMS states that 51% of staff deemed "exempt" and "excepted" will be retained to ensure that funded activities continue to operate. The contingency plans do not explicitly reference a reduction in force, which the White House Office of Management and Budget (OMB) instructed agencies to consider in the case of a shut down.

Meanwhile, a group of Senate Republicans is reportedly working on a proposal that would pair an extension of the subsidies with several Republican policy priorities; discussions are already underway with administration officials, including CMS Administrator Mehmet Oz, M.D. for this package that would likely materialize later this year.

Rural Health Transformation Fund

Ten Republican members of the House last week sent a letter to HHS Secretary Robert F. Kennedy, Jr. and CMS Administrator Oz advocating for fair distribution of funds from the Rural Health Transformation Fund to states with Democratic governors.

The ten members were Reps. Dan Newhouse (R-Wa.), David Valadao (R-Calif.), Doug LaMalfa (R-Calif.), Jay Obernolte (R-Calif.), Pete Stauber (R-Min.), Brad Finstad (R-Min.), Michelle Fischbach (R-Min.), Juan Ciscomani (R-Ariz.), and Gabe Evans (R-Colo.).

Committee Activity This Week

The Senate is in session this week; the House's session was cancelled by Speaker Mike Johnson (R-La.).

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