01/27/2026 | Press release | Distributed by Public on 01/27/2026 15:19
The House approved the minibus appropriations package in two votes last week. The Defense- Labor-Health and Human Services-Education, and Transportation-Housing and Urban Development appropriations bills were approved 341-88. The package directs nearly $117 billion to the Department of Health and Human Services (HHS) and largely preserves funding for programs previously targeted for substantial cuts. It includes a two-year elimination of the Medicaid disproportionate share hospital (DSH) cuts until FY 2028, a two-year extension of Medicare telehealth program flexibilities, and a five-year extension of the Acute Hospital-at-Home waiver. The Department of Homeland Security (DHS) bill passed 220-207.
The appropriations package is now with the Senate, where lawmakers face a tight Jan. 30 deadline to approve the remaining six appropriations bills. Events over the weekend in Minnesota have raised calls from both Senate Democrats and moderate Senate Republicans to block passage of the bills if they include funding for DHS, most likely setting up a partial government shutdown.
America's Essential Hospitals last week sent Congress a letter that highlighted the association's legislative priorities - including averting deep cuts to Medicaid funding, rejecting Medicare cuts to hospitals (site-neutral), and codifying essential health system designation. The Jan. 22 letter outlined other association priorities, such as protecting the 340B Drug Pricing Program and extending pending waivers that impact essential hospitals. The association recounted its advocacy over the past year, including its endorsements of bills important to member hospitals. America's Essential Hospitals will continue to reach out to congressional offices to share the letter and discuss its priorities with congressional leaders and lawmakers on key committees of jurisdiction.
The House is in recess this week, and the Senate is in session Tuesday through Friday.
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