With midterm elections within sight this November, Congress will be working ahead of the August recess with a focus on our key policy priorities, including:
- Medicaid: Reconciliation 3.0 poses more risk to Medicaid coverage and access
- Expanding access to affordable housing: 21st Century Road to Housing Act – will the Senate Act?
- Addressing health and direct service workforce shortages
More Medicaid Cuts?
Reconciliation 3.0
Federal policymakers are increasingly turning their attention to finding savings through additional healthcare cuts including to Medicaid to generate savings as the war with Iran continues. As part of a potential third reconciliation package (“Reconciliation 3.0”), which could advance later this summer, provisions related to Medicaid could include new program integrity measures and eligibility restrictions that could reduce coverage. This is on top of the significant cuts and program changes enacted as part of the first reconciliation bill, HR 1, which are still unfolding.
States Implement Work Requirements
At the same time, new federal guidance from CMS is moving forward with expanded work reporting requirements, which will require more frequent eligibility verification and potentially limit exemptions for medically frail individuals. Together, these developments increase administrative burdens for providers and create new barriers for patients in maintaining coverage. We encourage members to stay engaged and make their voices heard.
Take Action: Join your peers in telling Congress “no more cuts to Medicaid”. You can use our quick and easy advocacy tool to write your lawmakers and urge them to oppose any further cuts to Medicaid.
Expanding Access to Affordable Housing
House Advances Road to Housing
The House recently passed the bipartisan 21st Century ROAD to Housing Act, marking a significant step toward addressing the nation’s affordable housing shortage. While the legislation includes efforts to promote local zoning reforms and expand housing development, the House-passed version eliminated proposed incentive programs.
Now What?
Attention now turns to the Senate, where leaders have indicated that additional work is needed before a final agreement can be reached.
Yes in God’s Backyard
At the same time, we continue to advocate for “Yes In God’s Backyard” (YIGBY) legislation, which aims to ease faith‑based land conversions for affordable housing development. Action on this effort is increasingly moving to the various states, with eight states having already passed some version of this bill, including Washington, California, Oregon, Minnesota, Maryland, Hawaii, Florida, and most recently in Virginia.
Addressing the Workforce Shortage
Because workforce shortages remain a significant concern across the health and human services sector, we continue to support efforts to strengthen the pipeline of healthcare and direct support professionals, including by removing barriers for internationally trained workers through the Healthcare Workforce Innovation Act.
Nursing Professional Designation Downgraded
At the federal level, a new policy change excludes most nursing programs from the definition of a “professional degree.” This action has prompted a lawsuit from major nursing organizations. If upheld, the change could limit access to federal student loans for advanced nursing education, with potential downstream effects on workforce supply at a time when shortages are already acute.
We will continue to monitor these developments closely and keep you informed as the policy environment evolves in the months ahead.
Sue Polis is Vice President of Public Relations and Government Affairs at Lutheran Services in America. Sarah Dobson is Senior Director of Advocacy and Public Policy at Lutheran Services in America.