Congress Passes Budget Reconciliation Bill with Severe Medicaid Cuts
The House on Thursday, July 3 passed H.R. 1, the One Big Beautiful Bill, adopting Senate language that cuts Medicaid by nearly $1 trillion – a deeper cut than the original House bill’s $800 billion cut.
The vote was 218 to 214. Republicans concerned about Medicaid cuts and who were originally opposed to the bill were persuaded by the bill’s inclusion of a Rural Health Transformation Program and assurances from the Trump administration about working with Congress to implement this bill— and the Rural Health Program in particular.
The Senate bill added the $50 billion rural program— distributed over five years — to offset some of the losses rural hospitals will face because of the provider tax phase down. A complicated and burdensome package, the rural provider fund provides just a tiny fraction of nearly $1 trillion in cuts the bill makes to Medicaid.
There are numerous unanswered questions about the Rural Health Program regarding language and implementation, access for rural mental health and SUD treatment providers, and the communities they serve. NABH will work with Congress, the administration and CMS to help ensure the program is implemented effectively.
Other opportunities to effect change include the congressional appropriations process and a potential second budget reconciliation bill in late 2025/early 2026.
Thanks to all of the NABH members who contacted their representatives and senators. More than 1,500 members responded to our action alerts. Working with allied healthcare and patient organizations, we will continue this effort to educate Congress and the administration about the Medicaid cuts’ drastic effects on patients, communities, and providers as we seek solutions.
The legislation now moves to President Trump’s desk for his signature.
NABH will release additional analysis and details as we learn more. Please contact NABH Vice President of Government Relations Andy Dodson at andy@nabh.org if you have questions.