Federal Politics

The Centers for Medicare and Medicaid Services (CMS) Administrator Dr. Mehmet Oz recently announced that applications for the new $50 billion Rural Health Transformation Program will open in early September. This funding is intended to help states, not individual providers, stabilize rural hospitals in the wake of recent Medicaid cuts included in the "One Big Beautiful Bill Act." Key priorities for the funding include workforce development, system right-sizing, and expansion of telehealth and technology infrastructure. States are expected to begin submitting proposals this fall. Read more here.

You may remember the federal Executive Orders earlier this year that aimed broadly to ban many diversity, equity, and inclusion practices and “equity-related” grants and contracts. This week, the U.S. Department of Justice (DOJ) issued new guidance to clarify how diversity, equity, and inclusion (DEI) laws apply to programs and initiatives. The memorandum can be found here, and here are some activities from the memo that agencies who receive federal funding should avoid-

• Scholarships or internships limited to certain racial groups

• Hiring or promotion preferences based on demographics

• Quotas or demographic benchmarks

• Requiring diversity statements or emphasizing “lived experience” in selection

• Targeting recruitment to geographic areas defined by racial composition The memo outlines suggested steps organizations can take to reduce risk and stay in compliance, including focusing hiring and program decisions on skills and qualifications, ensuring that programs and trainings are open to everyone, documenting the reasons for any selection criteria used, and…

• The Centers for Medicare and Medicaid Services (CMS) has alerted states, including New York, to begin winding down continuous Medicaid coverage programs. This includes New York’s policy guaranteeing coverage for children from birth to age six, which is currently authorized under an 1115 waiver through March 2027. While CMS isn’t immediately revoking funding or coverage, it says it won’t approve new or extended waivers that support continuous eligibility or Medicaid-funded workforce programs, which could impact more than 800,000 children in New York. Read more here.

• Sen. Josh Hawley (R-MO) introduced the “Protect Medicaid and Rural Hospitals Act,” which would reverse two of those cuts and double the Rural Health Transformation Fund to $100 billion over 10 years. Read the bill text here.

• Federal funding is set to expire on September 30. The Senate is actively working on its appropriations bills, but House Republicans have delayed movement until after the August…

Well, the House of Representatives passed the “One big beautiful bill” Act https://www.congress.gov/bill/119th-congress/house-bill/1/text?mkt_tok=NzczLU1KRi0zNzkAAAGbcJTCfWOYuXrwZ4HhBd5MfuS96Z6kE35oORC1NHKsFQFdjNrA4OcF_6w4q0yh43-_erbR4mNbk_u_gIWSyqCC9whzO4-ETy5f0YgyFF-k-eYTnA yesterday, and President Trump signed it this morning. Here's the best summary of where NY representatives stand on it from Albany Times-Union reporter Dan Clark:

“I won’t waste your time with a bunch of statements from federal lawmakers. It boils down to this: Republicans from New York like it, Democrats from New York hate it and it’s sure to be a top talking point in next year’s elections. The end.”

There were no significant changes made from the Senate bill that passed on Tuesday, which means there are almost unimaginably huge cuts to Medicaid and other assistance programs like SNAP and housing, but at least the effects of some provisions are delayed or phased in over time. This leaves a tiny bit of breathing room for continued advocacy with federal legislators, and frankly, elections, to change the ultimate…