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Senate Democrats demand answers on rural health fund

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July 25, 2025
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Senate Democrats demand answers on rural health fund
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The Big Story 

Senate Democrats demand answers on rural health fund

More than a dozen senators are calling for answers on how the Trump administration plans to use millions of dollars of a rural health “slush fund” included in the massive tax cut law.  

© Photo credit

A group of 16 Democratic senators led by Minority Leader Chuck Schumer (N.Y.) accused Republicans of using the $50 billion rural health program to buy votes for President Trump’s sweeping tax and spending package.  

 

The money is meant to ease the burden of the law’s Medicaid cuts on rural hospitals. It helped assuage concerns of key senators, including Lisa Murkowski (R-Alaska) and Josh Hawley (R-Mo.). 

 

The Democrats asked the Centers for Medicare and Medicaid Services (CMS) for clarity and guidance on the fund in a letter sent Friday while also bashing it as a “wholly insufficient to plug the massive hole created by the Big, Ugly Betrayal.” 

 

The law was paid for in large part with about $1 trillion in Medicaid cuts, the largest since the program’s creation. 

 

“We are alarmed by reports suggesting these taxpayer funds are already promised to Republican members of Congress in exchange for their votes in support of the Big, Ugly Betrayal,” the letter reads. “In addition, the vague legislative language creating this fund will seemingly function as your personal fund to be distributed according to your political whims.”  

 

The fund will not make direct payments to rural hospitals. Instead, $25 billion will go to all states after they file “rural health transformation plans” which then must be approved by CMS Administrator Mehmet Oz.  

 

CMS must make a decision on approving the plans by the end of the year. 

 

Read more from The Hill’s Joseph Choi here. 

 

Welcome to The Hill’s Health Care newsletter, we’re Nathaniel Weixel, Joseph Choi and Alejandra O’Connell-Domenech — every week we follow the latest moves on how Washington impacts your health.

 

Did someone forward you this newsletter? Subscribe here.

 

Essential Reads 

How policy will be impacting the health care sector this week and beyond:

 

Trump administration asks Supreme Court to allow NIH to cancel health grants

The Trump administration asked the Supreme Court on Thursday to allow it to continue moving forward with canceling National Institutes of Health (NIH) grants over their connections to diversity initiatives. The Department of Justice (DOJ) asked the court for an emergency stay that would stop Boston-based U.S. District Judge William Young’s ruling last month, which halted the cancellation and forced the government to reinstate several of the grants. 

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GOP senators urge White House to release delayed NIH funding

Sen. Katie Britt (R-Ala.) and 13 other Senate Republicans are urging the Trump administration to release National Institutes of Health (NIH) funding that has been held up for months. The GOP senators warned in a letter to White House budget chief Russell Vought that the “slow disbursement of funds” that Congress appropriated in March “risks undermining critical research and the thousands of American jobs it supports.” “Suspension …

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Rabies on the rise in US: What to know

The threat of rabies is becoming greater in the U.S., with public health officials warning people to stay safe and protect themselves and their pets from the deadly disease. Nassau County in Long Island, N.Y., declared a public health threat due to the spread of rabies in wild animals, with 25 confirmed cases in the past year, including raccoons and feral cats. Nearby Suffolk County also reported the first two cases of rabies …

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In Other News 

Branch out with a different read:

Texas lawsuit challenges telehealth abortions, citing Comstock Act

A Texas man is suing a California doctor for allegedly providing his girlfriend with abortion medication.   The lawsuit—a civil complaint filed in the federal court for the Southern District of Texas—accuses a physician named Remy Coeytaux of violating state and federal laws by mailing abortion pills to “murder” the “unborn child” of the plaintiff, Jerry Rodriguez.   This is the first individual complaint concerning …

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Around the Nation 

Local and state headlines on health care:

Planned Parenthood permanently closes five northern California health centers (ABC) 

Texas hospitals, clinics spared the worst of GOP Medicaid cuts. An expected rise in the uninsured rate could change that (The Texas Tribune) 

New Hampshire is the first state to require doctors to follow patients’ wishes on sterilization (NHPR) 

 

What We’re Reading 

Health news we’ve flagged from other outlets:

The number of family caregivers is surging (The 19th) 

Trump order pushes forced hospitalization of homeless people (The Washington Post) 

Trump voters wanted relief from medical bills. For millions, the bills are about to get bigger (KFF Health News) 

 

What People Think 

Opinions related to health submitted to The Hill:

The FDA must be modernized for the era of personalized medicine
Trump’s pharmaceutical tariffs will dig America deeper into medical debt

 
 

You’re all caught up. See you next week! 

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