Budget Reconciliation Update: Senate Passage

​​Congress is in the middle of a contentious budget process that could have major implications for home care providers. Both the House and Senate have passed their respective versions of a Fiscal Year 2026 budget resolution. The House now expected to consider the Senate’s version. 

​​Congress is in the middle of a contentious budget process that could have major implications for home care providers. Both the House and Senate have passed their respective versions of a Fiscal Year 2026 budget resolution. The House now expected to consider the Senate’s version. 

Without agreement between the two chambers, the reconciliation process, which allows certain budget-related legislation to bypass the Senate filibuster, cannot be completed. Still, lawmakers are aggressively negotiating behind the scenes, and passage could happen at any moment. HCAOA is closely tracking these developments and advocating for policies that support our members, their employees, and the clients they serve.

What Is Budget Reconciliation?
Reconciliation is a special legislative process Congress can use to fast-track certain budget-related bills. It allows legislation that affects spending, revenue, or the debt limit to pass the Senate with a simple majority vote—51 instead of the usual 60 needed to overcome a filibuster.
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This process begins after Congress adopts a budget resolution, which includes “reconciliation instructions” directing specific committees to produce legislation that hits targeted budget goals. Once those committees act, their proposals are packaged together into one reconciliation bill, which then moves to the full House and Senate for debate and vote.
Importantly, the reconciliation process cannot be used for just any policy change. The Byrd Rule limits what can be included in a reconciliation bill, restricting it to provisions with direct budgetary impact.

Where Are We Now?
On Tuesday, July 1, 2025, the Senate passed its own version of the Reconciliation bill and sent it to the House for consideration. The House passed a budget framework in May that calls for significant reductions in federal spending, including cuts to Medicaid. Negotiations are ongoing as this article is being written. Congress has not yet passed a joint budget resolution, which is required to initiate reconciliation. President Trump has been pushing to have the bill on his desk before the July 4th holiday.

Why It Matters
Reconciliation bills have been used in recent years to pass major legislation, from the Affordable Care Act to the 2017 tax overhaul. Because they are not subject to the Senate filibuster, they are often used to advance significant policy changes with only a simple majority vote.

For the home care industry, the reconciliation process could affect federal Medicaid funding, tax policy, and labor-related provisions, all of which impact agencies and workers directly.

HCAOA will continue to monitor developments and advocate for policies that support access to care in the home, protect funding for HCBS, and recognize the value of the caregiving workforce.

Stay Tuned
We will keep members informed as Congress moves forward. In the meantime, we encourage you to stay engaged, share your perspectives with lawmakers, and reach out to the HCAOA Policy Team with any questions.