The Budget Reconciliation Bill's Financial Impact on Children’s Hospitals

The budget reconciliation legislation will have a devastating effect on the financial viability of America’s children’s hospitals.
DOWNLOAD

On July 4, President Trump signed reconciliation legislation, H.R. 1, which includes numerous actions to reduce federal Medicaid spending through new restrictions on Medicaid eligibility and coverage rules, payments, and non-federal share financing. The attached report outlines the bill’s financial impact on children’s hospitals across the U.S. The results show the changes to Medicaid will indelibly harm children.

The budget reconciliation bill includes policies that will reduce federal Medicaid spending by restricting Medicaid eligibility and coverage rules, payments, and non-federal share financing. The CHA-commissioned report by Manatt Health models the financial impact of proposed changes to state-directed payments (SDPs) and provider taxes based on survey responses from 60 children’s hospitals across sixteen states.

The budget reconciliation bill's restrictions on provider taxes and SDPs will limit states’ ability to finance enhanced Medicaid payments. This will have a devasting impact children’s hospitals’ ability to sustain and promote access to care for children and their families in the Medicaid program.

Read the full report.

Related Content

Unlocking Hope with Improved Access to Gene Therapy

The promise of CGTs is tempered by their staggering cost and treatment complexity.

Sep. 23, 2025

An Invisible Disease: Sickle Cell Doesn't Stop Justus

Children’s Hospital Association and Team IMPACT recognize the strength, resilience, and community that surround children and families with sickle cell disease.

Sep. 22, 2025

CHA Recognized as a 2025 John M. Eisenberg Patient Safety and Quality Award Recipient

Children's Hospital Association (CHA) has been honored for the Improving Pediatric Sepsis Outcomes (IPSO) Collaborative, a seven-year, 66 hospital initiative.

Sep. 17, 2025