Congress returns, with 14 days to fund the government
After a month-long recess, Congress has returned and is facing a deadline of September 30, 2025, to fund the government for fiscal year (FY) 2026. Both the House and Senate will only be in session for 14 days (including today) before that deadline. It remains to be seen whether they will reach a bipartisan deal, as is necessary to move a government funding package through Congress this month, or if there will be a shutdown.
Before leaving town for the August recess, the Senate passed three appropriations bills, including the US Food and Drug Administration bill, by large bipartisan margins. While the Senate has made some bipartisan progress, what passes the Senate may not pass the House, and vice versa. Senate Minority Leader Schumer (D-NY) indicated that Democrats will work with Republicans to pass bipartisan legislation to keep the government funded, but he stated that Republicans appear poised to instead push through a partisan funding package. Given the partisan dynamic and the tight timeline, a shutdown seems likely.
Appropriations work, however, will continue at the committee level in the House this week. The Labor, Health and Human Services (HHS), Education, and Related Agencies Subcommittee will mark up its FY 2026 funding bill Tuesday evening. The House version of the bill differs from the Senate version, which passed out of the Senate Appropriations Committee in July by a 26 – 3 vote. The House version includes $108 billion for HHS, a $7 billion cut from FY 2025, while the Senate version would provide a small increase to HHS funding at $116 billion. Both funding levels are higher than the $94.7 billion that the Trump administration requested earlier this year. After subcommittee consideration, the full House Appropriations Committee could consider the bill as early as this Thursday.
Also this week, the Senate Finance Committee will vote on the nominations of Gustav Chiarello as HHS assistant secretary for financial resources and Michael Stuart as HHS general counsel. HHS secretary Kennedy will testify before the Finance Committee on the president’s 2026 healthcare agenda. The second Make America Healthy Again report, which will include recommendations related to children’s chronic diseases, could also be released that day. Read our Regs & Eggs blog post previewing the report. The Medicare Payment Advisory Commission will also hold its first meeting of this cycle, focusing on payment accuracy, oversight, hospice services, and the effect of Medicare Advantage enrollment on hospital finances.
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