(April 7, 2026) - The House and Senate are currently in recess for various religious holidays but will return next week with a full agenda. The fiscal year 2026 budget is still in progress, and President Donald Trump submitted his FY 2027 budget to Congress just as they were leaving in late March.
When Congress returns, they must first address 2026's unfinished business: the Department of Homeland Security budget. Although there is actual legislative text regarding an agreement between the House and Senate on how to proceed, neither side has passed the same version of the deal. While most expect this will be resolved, many thought it would be settled weeks ago, so delays are possible due to ongoing debates.
One such obstacle is the president’s threat over the weekend to escalate the war in Iran this week. On Friday, the administration submitted the president's FY 2027 budget to Capitol Hill, which included a proposed increase to the Pentagon’s budget to $1.5 trillion. Reductions to many domestic programs would offset this funding.
Two programs that the president’s budget proposed to cut are familiar to Kansas Hospital Association members: the Medicare Rural Hospital Flexibility Program and the Small Rural Hospital Improvement Program. The president's budget zeros out and eliminates these programs, but last year's proposal also included cuts. The cuts were also proposed for elimination last year, but this was avoided. When we advocated restoring funding, Congress not only maintained funding but also increased both budgets. Restoring funding is one of our top priorities in this year's appropriations cycle.
Lastly, it is possible Congressional leadership will try to fund the war in Iran through a reconciliation bill, similar to the process used last year for H.R. 1. In doing so, they might seek to cut non-discretionary spending, such as Medicare and Medicaid, to offset the new costs. Of particular concern is the use of so-called site-neutral payment schemes to cut Medicare reimbursements to hospitals, thereby freeing up more money for other priorities. We will oppose this, as we have repeatedly stated, hospitals are not the same as primary care physician offices, especially because they must comply with EMTALA.
As Congress returns and we meet with the Kansas Delegation later in April at the American Hospital Association’s Annual Meeting, we will convey these concerns and others to advocate for policies that strengthen Kansas hospitals and our health care ecosystem.