NACBHDD/NARMH Leader Shares Updates on the Very Fluid Federal Budget


May 22, 2025

NJAMHAA is sharing the following information received from Jonah C. Cunningham, President/CEO, National Association of County Behavioral Health and Developmental Disability Directors (NACBHDD) and Executive Director, National Association for Rural Mental Health (NARMH).

"Rules Committee Meeting [as of 3:15 pm on May 21st]: There are 537 democratic amendments to consider.  

"Revised Bill Text: The reconciliation bill was amended prior to the Rules Committee meeting. Relevant to our work, the amended version would exempt mental health and SUD [substance use disorder] services in cost sharing requirements and reportedly work requirements. More changes are still likely to come, with possible alterations to FMAP [Federal Medical Assistance Percentage] being discussed. 

"Updated CBO [Congressional Budget Office] Scores: Updated CBO Scores have been shared. In a distributional analysis, CBO estimates a cut of $698 billion for funding to Medicaid and a $267 billion cut to the Supplemental Nutrition Assistance Program (SNAP) from 2026-2034. A separate letter from CBO found that the bill, before any amendments that may be adopted during the Rules Committee meeting or on the floor, would increase the deficit by $2.3 trillion. This would trigger automatic spending cuts, known as sequestration, in Medicare and other programs without congressional action. 

o      What is Sequestration? 

o       Sequestration is the automatic reduction of certain federal spending, generally by a uniform percentage, that was established by Congress in 1985. This budget enforcement tool has been incorporated into laws to achieve certain budget objectives and goals. Under the Budget Control Act (P.L. 112-25), a mandatory sequestration order cannot reduce Medicare benefit payments or Medicare Integrity Program spending by more than 2%. You can read more about it here

"Passing of Rep. Connolly: The tragic news of Congressman Jerry Connolly's passing also affects the vote margins in the House. The current party breakdown of the House is 220 Republican, 212 Democrat with 3 vacancies."

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