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

Children's Hospital Association Responds to H-1B Visa Program Changes

CHA has submitted a letter to the administration highlighting the impact of H-1B Visa changes on the pediatric workforce.

Jan. 08, 2026

A Home During Hospital Stays

A home on hospital grounds offers respite and support for families of patients from rural areas.

Jan. 07, 2026

5 Tips for Creating Hospital Violence Intervention Programs

An emergency medicine physician gives advice children’s hospitals can use to help break the cycle of violence.

Jan. 06, 2026