Health Policy Digest - July 2025

We are pleased to present the July issue of the ARN Health Policy Digest. This member benefit provides updates on health policy and legislative and regulatory developments that may be of interest to rehabilitation nurses.

Trump Signs One Big Beautiful Bill

After weeks of partisan debate and internal Republican disagreements, President Trump signed the One Big Beautiful Bill Act (H.R. 1) into law on July 4. The sweeping reconciliation package advances many of the President's top legislative priorities—including an extension of the 2017 tax cuts, defense funding, border security measures, and energy policy—while also making deep cuts to Medicaid, health coverage, and student loan programs. According to the Congressional Budget Office (CBO), the bill would increase the deficit by $3.3 trillion over the next decade and cut Medicaid by $930 billion, stripping an estimated 17 million Americans of access to essential health care services. A summary of the relevant sections of the bill can be found here.  

Updates on FY 2026 Appropriations​

With the reconciliation bill now behind them, Congress has shifted its attention to the FY 2026 appropriations process and is actively working through the 12 annual spending bills.

In the Senate, the Appropriations Committee has begun considering its versions of the spending bills, though there has been no movement on Labor-HHS yet.

In the House, several subcommittee and full committee markups have already taken place. However, the Labor, Health and Human Services, Education (Labor-HHS) subcommittee markup will not take place until after lawmakers return from August recess. We had anticipated that this would happen on July 21, with the full committee markup following on July 24. However, we now know that this was delayed due to an adjusted schedule following the extended reconciliation debates and a delayed recess.

House Appropriations Chair Tom Cole (R-OK) unexpectedly released the funding totals for each spending bill for FY 2026. Non-defense spending is set at $705.6 billion, representing a cut of nearly 6% compared to FY 2025 levels. The House allocation for the Labor-HHS subcommittee is $184.491 billion.

Once there is more clarity on funding levels in both chambers, we will share updates with members. In the meantime, ARN members can take action on our FY 2026 spending priorities here. As a reminder, Congress has until October 1 to finalize the appropriations bills. If they are unable to do so, they will need to pass a continuing resolution (CR) to avoid a government shutdown. Given the current pace of negotiations and competing legislative priorities, a CR is highly likely.

Lawmakers Pass President Trump's Rescissions Package

Reconciliation has dominated much of Congress's attention, but Republicans were also racing to meet the President's July 18 deadline to send a rescissions package to his desk. The now passed package included the administration's request to claw back $9 billion in previously approved funding for foreign aid and public broadcasting, including a $900 million cut to global health programs.

In a narrow 216–213 vote, the House passed a $9 billion rescissions package, advancing a key Republican spending priority and setting the stage for a broader partisan clash. All Democrats opposed the measure, joined by Representatives Brian Fitzpatrick (R-PA) and Mike Turner (R-OH), underscoring some internal dissent over the scope and priorities of the package.

The House vote followed a dramatic Wednesday night in the Senate, where lawmakers held a vote-a-rama during which Democrats introduced several amendments aimed at softening the proposed cuts—most of which were defeated along party lines. The amended package was then narrowly advanced in a 51–50 Senate vote, with Vice President JD Vance casting the tie-breaking vote. Senators Lisa Murkowski (R-AK), Mitch McConnell (R-KY), and Susan Collins (R-ME) broke with their party to oppose the bill.

The passage of the rescissions package could further complicate the FY 2026 appropriations process, as Democrats have expressed concerns that funds appropriated could ultimately be rescinded, undermining the purpose of future bipartisan negotiations and limiting the practical impact of enacted spending bills. This worry is compounded by Speaker Mike Johnson's (R-LA) reaffirmed commitment to deeper spending cuts and previewed plans to introduce at least two additional reconciliation packages over the next two years. Additionally, the Office of Management and Budget (OMB) Director announced the Trump administration will send more requests to rescind previously appropriated funds but declined specifics on timing or targets for the future rescission package.

Congress Reintroduces Legislation to Improve Access to Orthotics and Prosthetics

On July 17, Senators Steve Daines (R-MT) and Mark Warner (D-VA) introduced the Medicare Orthotics and Prosthetics Patient-Centered Care Act in the Senate, and Representatives Glenn Thompson (R-PA), Debbie Dingell (D-MI), and Mike Thompson (D-CA) introduced the bill in the House. After previously being introduced in the 118^th Congress, the bill aims to help Medicare beneficiaries get access and coverage to the prosthetics and orthotics devices they need. Specifically, this bill ensures that Medicare beneficiaries are receiving the specialization and customization of care necessary for successful use of orthotic and prosthetic devices. ARN supported this legislation in the 118^th Congress and we are included as supporters in the recent press release from Representative Thompson regarding the newly introduced bill.

Reminder: NIH Rehab Conference Rescheduled for August 6​

The NIH Rehabilitation Research 2025: Rehabilitation for all Conference, previously scheduled for March 2025 has been rescheduled to take place on August 6. This conference will take place virtually from 9am to 5 pm ET. This is the third NIH-wide rehabilitation conference since 2016 and is in accordance with the 21^st Century Cures Act to improve medical rehabilitation research at the NIH and will focus on a wide range of rehabilitation topics. Please see here for the link to register.

Notice of Funding Opportunities​

Below is a list of other funding opportunities for interested ARN members.

• PAR-25-414 - Support for Research Excellence (SuRE) Award (R16 Clinical Trial Not Allowed)
• PAR-24-273 - Advancing Healthcare for Older Adults from Populations that Experience Health Disparities (R01 - Clinical Trial Optional)
• RFA-MD-24-007 - Technologies for Improving Minority Health and Eliminating Health Disparities (R41/R42- Clinical Trial Optional)
• FOR-NR-25-006 - Limited Competition: Community-Partnered Nursing Research Centers for Schools and Colleges of Nursing with Limited NIH Funding (P20 Clinical Trial Optional)
• FOR-NR-25-005 - Notice of Intent to Publish a Funding Opportunity Announcement for Community-Partnered Nursing Research Centers (P20 Clinical Trial Optional)
• FOR-NR-25-002 - Leveraging Nursing Research to Advance Healthy School Environments for All