The House and Senate have plenty of work waiting for them after the two-week Easter recess. Top of mind is reaching agreement on the details of the budget, which must meet President Trump’s tax, border security and energy agenda. The House has passed the Senate’s budget blueprint; the chambers now must reach an agreement through the reconciliation process. The House Energy and Commerce Committee could get to work on its portion of the package as early as May 5th.  

Both the House and Senate budget bills include a $880 billion cut to programs run by House Energy and Commerce, essentially guaranteeing cuts to Medicaid. Recently, a dozen House Republicans have spoken against any cuts to the program, making it more difficult. House and Senate Republicans are aligned in their goals to reduce federal spending and cut taxes but the budget blueprint’s addition of $5.7 trillion to national debt also has some deficit hawks balking. The budget blueprint also includes raising the debt ceiling, something Congress must do to avoid default on the nation’s $36.6 trillion debt. 

The House and Senate differ most on the amount of overall spending cuts to be adopted. Senate legislation calls for a minimum of $4 billion in reduced federal spending, while the House mandated a much more aggressive $1.5 trillion.  

With both the House and Senate budget resolutions passed, Republicans are clear to move forward in developing the specific policy package to meet the funding levels proposed. Policymakers will be particularly focused on Medicaid, with moderate Republicans concerned that the program be spared the $1.5 trillion cuts favored by the House budget. Policymakers are also working to include additional tax cuts supported by the President, like on overtime wages and tipped income.  

Republican leaders want to have the budget work wrapped by Memorial Day weekend, a quite ambitious timeline given the current disagreements. It’s important to note that this process is separate from other policies being considered by Congress, like the deadline to extend the telehealth flexibilities and the hospital-at-home model by September 30th.