June 01, 2023
Federal lawmakers are moving closer to a final agreement to raise the debt ceiling ahead of the June 5 deadline to ensure the government can fulfill its obligations.
Last night, House lawmakers approved a proposal that would raise the debt ceiling and cap non-defense government spending, sending the agreement to the Senate for consideration. The bill was approved in the House by a 314–117 margin. The Senate vote could occur as early as tonight.
“There’s been a very good vote in the House. I hope we can move the bill quickly here in the Senate and bring it to the president’s desk as soon as possible,” Senator Chuck Schumer (D-NY) said according to media reports.
The Treasury Department has indicated that the federal government could run out of funding to meet its obligations as early as Monday. The proposed deal would raise the $31.4 trillion debt ceiling and keep non-defense spending relatively flat through fiscal 2024 before increasing slightly during fiscal 2025.
The agreement does not include work requirements for Medicaid beneficiaries—a strong point of contention between both parties. It would claw back about $30 billion in unspent COVID-19 relief funding to CMS, the CDC, the National Institutes of Health, and other federal agencies. The White House said the bill would preserve about $5 billion in funding to develop the next generation of COVID-19 vaccines and treatments.
The hospital community has been watching the debt ceiling negotiations in Washington particularly closely, as the failure to raise the limit could have ramifications for payments to Medicare and Medicaid providers.
HAP continues to monitor the debt ceiling negotiations and will provide updates to members. For more information, contact John Myers, HAP’s vice president, federal advocacy.
Tags: Federal Advocacy
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