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Congress Passes Short Term Funding Bill to Reopen the Government

The federal government reopened following Congress’s passage of a funding bill on Wednesday. The package includes a continuing resolution that expires January 30, 2026, as well as full-year appropriations for the Department of Agriculture, Veterans Affairs, and Congressional operations. Full Supplemental Nutrition Assistance Program (SNAP) benefits should resume in all states and be in place through September 2026, even if another shutdown occurs.

The package does not include extension of Affordable Care Act (ACA) enhanced premium tax credits (ePTCs). As AARP reports, 92% of older adults ages 50 to 64 enrolled in Marketplace coverage are projected to pay higher premiums in 2026 if the ePTCs are not extended.

Use this toolkit from Families USA and Community Catalyst to urge Congress to make ePTCs permanent and reverse cuts to Medicaid and Medicare.

Social Security 2026 COLA Increase

The Social Security Administration recently announced a 2.8% increase for the 2026 Cost of Living Adjustment (COLA). While this boost is welcome and needed for older adults and people with disabilities living on fixed incomes, it still falls short of keeping pace with the rising costs they face for housing, food, health care, and other essentials.

Learn more in our issue brief: Social Security is Vital to Americans Nationwide.

Most States Project Medicaid Budget Shortfalls in 2026

In their annual Medicaid enrollment and spending growth analysis, KFF reports that more states are facing Medicaid budget uncertainty than last year, due in part to the Medicaid and other health care cuts enacted by the budget reconciliation law (H.R. 1). Nearly two-thirds of responding states reported the chance of a 2026 Medicaid budget shortfall was “50-50”, “likely”, or “almost certain.” 

A few states are implementing Medicaid spending cuts, particularly to provider rates. As American Rescue Plan Act funding is expiring, 24 states are planning to increase home- and community-based services (HCBS) provider rates in fiscal year 2026, down from 34 in 2025 and 39 in 2024.

Three states are decreasing their HCBS provider rates (ID, NC, WY). More states will likely target HCBS for cuts in response to H.R. 1. For example, Colorado’s governor has proposed decreasing home care hours and lowering provider reimbursement rates.

Learn more about Medicaid cuts mean for low-income older adults’ access to health and long-term care in our issue brief.

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