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CSTE Hill Update: Three Key Budget Developments on Capitol Hill

Posted By Victoria Barahona, CRD Associates, Thursday, August 14, 2025
Updated: Thursday, August 14, 2025

Image of Lincoln Memorial Reflecting Pool with Washington Monument in background

We’re more than halfway through the year, and there has been no shortage of action on Capitol Hill. Here’s what you need to know.

First, let’s talk about the budget reconciliation bill, also known as the One Big Beautiful Bill (H.R. 1). But before we get into what’s in it, a quick detour on how it got through Congress.

Budget reconciliation is a legislative fast-track that lets Congress pass certain tax, spending, or debt bills with just a simple majority in the Senate—bypassing the usual 60-vote threshold require to avoid a filibuster.

After months of negotiation, Congress passed the bill and on July 4, President Trump signed the $4.5 trillion package into law, pairing major tax cuts with new investments in border security and defense. To help pay for it, the bill includes $1.2 trillion in cuts to programs like Medicaid, food assistance, and student loans—sparking heated debate.

The margins were razor-thin: Vice President JD Vance broke a tie in the Senate, and House Speaker Mike Johnson (R-LA) barely rallied enough party support for passage. No Democrats backed the bill.

Second, let’s talk about rescissions. After passing the budget reconciliation bill, Congress took a short Fourth of July break, but came back to a tight deadline: they had just 10 days to act on President Trump’s rescissions package.

So, what is a rescissions package, exactly? It’s a formal request from the administration to cancel funding that Congress had already approved. If lawmakers agree to the President’s proposal, that money is pulled back and can’t be spent by the agency to which it was allocated.

There are rules, of course. Once a President submits a rescission request, Congress has 45 continuous days of congressional session to approve, amend, or reject it. In this case, lawmakers returned from recess with the clock ticking and managed to get it done just in time.

Passage of the recissions package was by no means a guarantee. The bill narrowly passed the House in June but was amended significantly to make it through the Senate. The package targeted cuts to foreign aid and public broadcasting. Although the rescissions package didn’t impact public health funding, it raised broader concerns. Some argue that pulling back already-approved federal funds sets a troubling precedent—one that could undermine confidence in the budget process and complicate future negotiations.

Since this recissions packaged passed, the White House has made it clear they would like to send a second round of cuts to Congress for approval. Early reports suggest this bill could target education funding.

Third and finally, with reconciliation and rescissions behind them, Congress shifted its focus to the FY 2026 appropriations process. Before the August recess, the House Appropriations Committee moved forward on most of its spending bills—leaving the politically charged Labor, Health and Human Services, Education, and Related Agencies (Labor-HHS) bill, which includes funding for the Centers for Disease Control and Prevention (CDC) on hold.

The delay has left health advocates uneasy—especially after the President released his FY 2026 Budget Request back in May. While the President’s budget is nonbinding (Congress holds the power of the purse), it outlines the Administration’s funding priorities and often helps shape the policy debate on Capitol Hill. The Administration proposed $4.3 billion for the CDC—a $5 million decrease from FY 2025—and called for the elimination of several key public health initiatives, including the Global Health Program, the National Center for Chronic Disease Prevention and Health Promotion, and the Prevention and Public Health Fund, which is the nation’s first mandatory fund dedicated to public health.

The Senate, meanwhile, advanced its Labor-HHS bill with a decisive 26–3 vote at the end of July, largely ignoring the White House’s proposed cuts and restructuring proposal. The Senate bill includes $9.15 billion for the CDC—a $70 million decrease from FY 2025—and allocates $160 million for Public Health Data Modernization, a $15 million cut from FY 2025. The Epidemiology and Laboratory Capacity (ELC) program received level funding at $40 million, while the Centers for Forecasting and Analytics (CFA) and Response Ready Enterprise Data Integration (RREDI) were funded at $50 million.

All of this sets up a jam-packed fall season, with a government funding deadline looming on September 30. If Congress can’t agree on a full-year spending package by then, they’ll need a continuing resolution (CR) to keep the lights on and the government running. There are already rumors about a CR through December and even the possibility of yearlong CR, which raises additional concerns about Congress’ ability to enforce its spending allocations.

With big decisions still ahead and the clock ticking toward September 30, all eyes will be on Congress when lawmakers return this fall. In the meantime, CSTE will continue working to ensure lawmakers understand the real-world impact these proposed cuts would have on public health efforts in every jurisdiction across the country.

Victoria Barahona is Senior Policy Associate at CRD Associates, LLC, which represents CSTE’s interests on Capitol Hill in Washington, DC.

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