On the Hill: Appropriations, 340B Battles, and Key Hearings Ahead

With the Oct. 1 government shutdown date approaching, negotiations on fiscal year 2026 appropriations are intensifying. House Republican leaders have introduced a "clean" continuing resolution (CR) this week that will fund the government, as well as important programs like telehealth and the hospital-at-home programs, through Nov. 20. The pending Medicaid DSH cuts will also be pushed off until Nov. 20. Republicans will not include any partisan policy riders, while Senate Minority Leader Chuck Schumer (D-N.Y.) and House Minority Leader Hakeem Jeffries (D-N.Y.) are pressing for the inclusion of health care-related provisions, including the extension of the ACA's Advance Premium Tax Credits (APTCs) or the rolling back of Medicaid provisions from the recent Republican reconciliation bill. The path forward remains uncertain, but we continue to stress to lawmakers the critical need to avert cuts to Medicaid Disproportionate Share Hospital (DSH) payments.

A coalition of health care groups, including America's Essential Hospitals, sent a Sept. 5 letter to Senate Majority Leader John Thune, (R-S.D.) Senate Minority Leader Chuck Schumer (D-N.Y.), House Speaker Mike Johnson (R-La.), and House Minority Leader Hakeem Jeffries (D-N.Y.) urging Congress to address the pending DSH cuts.

340B Update

Last week, Reps. Buddy Carter (R-Ga.) and Diana Harshbarger (R-Tenn.) introduced the 340B Affording Care for Communities and Ensuring a Strong Safety-Net Act (340B ACCESS Act), H.R. 5256. It would tighten eligibility for hospitals, narrow and restrict the definition of a "patient", and limit contract pharmacies, among other troubling components. We will be pushing back on this in our advocacy.

This followed a Sept. 9 bipartisan letter from more than 160 members of the House of Representatives to Health and Human Services Secretary Robert F. Kennedy, Jr. raising concerns about the proposed 340B Rebate Model Pilot Program. The effort was led by Reps. Dusty Johnson (R-S.D.) and Doris Matsui (D-Calif.), with Reps. Tracey Mann (R-Kan.) and Debbie Dingell (D-Mich.) as co-leads.

Key Hearings

On Sept. 9, the House Committee on Appropriations advanced the FY 2026 Labor-HHS-Education spending bill on a 35-28 vote. Democrats offered a series of amendments to restore funding for various programs, but most failed due to a lack of offsets.

Also on Sept. 9, the House Committee on Oversight and Government Reform's Subcommittee on Health Care and Financial Services held a hearing on holistic health and children's well-being. Subcommittee Republicans emphasized prevention-focused reforms, while Democrats warned that cuts to SNAP and Medicaid in the One Big Beautiful Bill would endanger children's health and the broader public health system.

Committee Activity This Week

Both the House and Senate are in session Monday through Friday this week.

The House Committee on Ways and Means Subcommittee on Oversight will hold a hearing on Tuesday, Sept. 16, at 2 pm ET, titled, "Virtue Signaling vs. Vital Services: Where Tax-Exempt Hospitals are Spending Your Tax Dollars."

The Senate Committee on Health, Education, Labor, and Pensions will hold a hearing on Wednesday, Sept. 17, at 10 am ET, titled, "Restoring Trust Through Radical Transparency: Reviewing Recent Events at the Centers for Disease Control (CDC) and Prevention and Implications for Children's Health." Notably, former CDC Director Susan Monarez will testify.

The House Committee on Energy and Commerce Subcommittee on Health will hold a hearing to discuss legislation "expanding seniors' access to innovative medical care" on Thursday, Sept. 18, at 9:30 am ET.

Government Relations Academy

Apply today for the 2026 Government Relations Academy! This program offers a unique blend of education, mentorship, and networking designed to strengthen your advocacy on behalf of essential hospitals. Applications are open through Dec. 10 - don't miss the opportunity to take your advocacy to the next level.

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