House Advances Harmful Budget Plan

Late Tuesday, House Republicans narrowly passed their budget resolution, paving the way for a reconciliation bill that advances key Trump administration priorities around tax and spending cuts.

As expected, the approved resolution directs the House Committee on Energy and Commerce, which has jurisdiction over Medicaid, to find $880 billion in savings—a number that is impossible to reach without slashing the program.

Despite rhetoric from some House Republicans about wanting to reach that target by tackling Medicaid “waste, fraud, and abuse” rather than by reducing benefits and shifting costs to states, they continue to be vague on how savings of that magnitude could be reached otherwise. These claims also run counter to the menu of Medicaid cuts they have been floating throughout the budget resolution negotiation process. Those outlined policies include destructive changes like lowering state matching rates, rolling back federal funds for the Medicaid expansion population, restructuring Medicaid by cutting and capping funding, as well as imposing burdensome work and administrative requirements.

Attention Now Turns to the Senate

There are major differences between the House and Senate on reconciliation, including on strategy. While the House wants to package all their priorities into a single large bill, the Senate prefers a two-bill approach. Last week, Republicans in the upper chamber put their plan into action by passing a budget resolution focused on military, border, and energy spending. They plan to craft a second reconciliation bill later this year to cut taxes and other programs.

Republican leaders must now decide how to proceed. Their options are limited: The Senate could either adopt the House-passed budget resolution—which would allow both chambers to start writing a reconciliation bill—or insist on changes, effectively sending it back to the House for a re-do.

Government Funding Deadline Looms

Reconciliation conversations may soon take a backseat to a different set of spending issues. The continuing resolution (CR) funding the federal government expires March 14.

These negotiations appear to be at an impasse. Republican congressional leaders have signaled in recent days that a largely “clean” extension of the current CR is likely. The length of another stopgap is unclear, as is the exact path forward.

Their narrow House majority means Republicans have few votes to lose. Funding bills can prove contentious within their caucus, and they typically need Democratic votes to avoid a shutdown. Republicans have 53 seats in the Senate, but 60 votes will be needed for passage. Gaining the necessary bipartisan support could prove difficult this time, as some Democrats are refusing to vote for a CR unless it includes language preventing the White House from withholding congressionally approved funding, an attempt to limit the interference of recent funding freezes and Department of Government Efficiency (DOGE) activities.

Take Action Today!

As Congress nears key federal funding decisions, now is the time to weigh in! Read more about how to reach your representatives in our recent action alert.