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Funding Deadline Nears as Senate Aims to Vote on Funding Package

Congress is still considering a Fiscal Year (FY) 2026 funding package that includes spending bills for the Department of Health and Human Services (HHS), the Department of Housing and Urban Development (HUD), and some other agencies.

Federal funding for these agencies is set to expire after today, January 30. At least a short partial government shutdown is therefore likely.

The Senate recently blocked the House-passed funding package due to objections over funding for the Department of Homeland Security (DHS) and recent incidents involving Immigration and Customs Enforcement (ICE).

However, a bipartisan Senate deal will now reportedly separate the DHS spending bill from the rest of the package. If the Senate passes an amended funding package, it will return to the House for another vote.

HR 1 Implementation Updates 

In late December, the Centers for Medicare and Medicaid Services (CMS) announced the first round of Rural Health Transformation Program (RHT) funding authorized under the 2025 budget reconciliation bill (H.R. 1). Every state was awarded funding for fiscal year 2026.

Learn more about the RHT program and funding in your state. KFF’s issue brief and RHT funds tracker provide more context of H.R. 1’s $900 billion in Medicaid cuts and links to available application documents for each state. 

KFF has also launched a Medicaid work requirements implementation tracker, which includes information about states’ existing policies and eligibility data systems.

Join Justice in Aging next Thursday, February 5, for a webinar, Implementing New Medicaid Work Requirements: Strategies to Mitigate Harm in Your State where we’ll walk through our toolkit, provide advocacy tips, and answer questions.  

Find all of Justice in Aging’s H.R. 1 and Medicaid defense resources on our website

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