FEDERAL BUDGET

It’s that time again.  Congress returns to Washington today and federal budget maneuvers are in full effect with Senate GOP leaders and appropriators pushing for a short-term funding patch to buy extra time for a larger deal, with a target of end of year.  But that’s certain to face pushback from conservatives who want to jam Democrats with a full-year funding bill that reflects Republican priorities.

The possibility of a federal government shutdown on October 1 – in part or in full, continues to grow as the two sides fail to work together to pass all 12 of the appropriations bills necessary to send a new budget to Trump. Instead, we are increasingly likely to see a Continuing Budget Resolution with federal budget spending capped at previous year spending levels until at least the end of the year.  At the same time, lawmakers are under pressure to pass several health extenders, chief among them for so-called telehealth flexibilities — easing of telehealth rules during the pandemic — and funding for community health centers.   

Republicans have yet to settle on a strategy to keep the government open, with the party split over whether to seek a short-term or full-year stopgap bill.  Dems are also divided — with some desperate to make a stand against Trump and others fearing the wrath of voters if the party is blamed for a shutdown. Senate Minority Leader Chuck Schumer’s latest Dear Colleague letter urges Republicans to pass bipartisan legislation to keep the government open and reject further rescissions … Read the letter

There is also more talk of the Trump administration sending over another rescission package so the Administration can continue its attempts to clawback previously appropriated Congressional funding.  As of this morning, the NY Times is reporting that the Supreme Court is unlikely to get involved in this fight.   

Trump increased the risk of a shutdown Friday when he moved to unilaterally claw back roughly $5 billion in foreign aid funding, further eroding already-frayed bipartisan trust. Senate Minority Leader Chuck Schumer sent a Dear Colleague letter today calling on Republicans to work across the aisle to get their support on government funding.“Senate Republicans must decide: stand up for the legislative branch or enable Trump’s slide toward authoritarianism,” Schumer said in the letter, adding that he spoke with House Minority Hakeem Jeffries and the two are aligned.
Republicans propose 6 percent HHS budget cutThe bill includes $100 million for HHS Secretary Robert F. Kennedy Jr.’s Make America Healthy Again initiative.By Kelly Hooper | 09/01/2025 09:09 PM EDT
The House Appropriations Committee is proposing a 6 percent cut to the Department of Health and Human Services’ budget for fiscal year 2026, according to bill text released Monday.The $108 billion funding proposal includes a $7 billion decrease from fiscal year 2025, which falls well below the $31.3 billion cut to the agency that the Trump administration proposed in May. The Trump proposal would have deeply slashed funding to the National Institutes of Health and the Centers for Disease Control and Prevention. Republican House appropriators had previously indicated that their proposed cuts wouldn’t come close to those levels.Why it matters: Republicans’ slim majority in the House means they can afford to lose no more than three votes and still pass a bill if Democrats unite in opposition. Other bills that have moved through the Senate Appropriations Committee, including one for the Food and Drug Administration, have so far come in with higher funding levels than those Trump proposed and won the panel’s approval with Democratic support.In the bill: The House panel’s proposal maintains $48 billion in funding for the NIH and includes $515 million for rural health and increased funding for rural hospitals. It also maintains $1.85 billion in funding for primary health care and increases funding for mental health and substance-use block grants.The proposal provides $100 million for HHS Secretary Robert F. Kennedy Jr.’s Make America Healthy Again initiative, aimed at combating the chronic disease epidemic through health and food reforms.In line with the Trump administration’s budget proposal, the House bill consolidates funding for prevention of sexually transmitted infections; infectious diseases, including tuberculosis; and the opioid epidemic into a new grant. Also consistent with Trump’s budget, the bill would increase funding for the CDC’s core infectious disease capacities by 2 percent, or $55 million.Other proposals in the bill include funding for home and community-based supportive services, the Head Start program, which provides early childhood education services for low-income families. The bill also restricts funding from going toward programs that provide abortion services or advance diversity, equity and inclusion initiatives.What’s next: The House Appropriations Committee will mark up the bill on Tuesday at 5 p.m. The markup comes as lawmakers are facing a government shutdown on Oct. 1 if Congress doesn’t fund the government.
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New York Congressman to Retire

New York Congressional Representative Jerry Nadler, one of Congress’s leading liberal voices for three decades, has announced he will not run for reelection in 2026.

NYT Gift article:  https://www.nytimes.com/2025/09/01/nyregion/jerrold-nadler-congress-retires.html?unlocked_article_code=1.i08.GN_t.SMXEgR5LyJUF&smid=url-share