From Reconciliation to Appropriations...Where are we now?

Congress is currently conducting two separate budget processes at this time. They are working on 1) an annual appropriations package which determines discretionary yearly spending for federal programs like Head Start, the Social Services Block Grant (SSBG), and the Child Care Development Block Grant (CCDBG) and 2) a reconciliation bill which will affect mandatory spending for programs like Medicaid and SNAP.


What is the difference between appropriations and reconciliation?
  • Appropriations: An annual appropriations process that determines federal discretionary spending. This process requires negotiation between the House and Senate.
  • Reconciliation: A special legislative process created as a result of the 1974 Congressional Budget and Impoundment Control Act that allows for expedited consideration of tax, spending, and debt limit legislation. Thus, a reconciliation bill can avoid the Senate's 60-vote filibuster threshold and instead allows lawmakers to pass legislation with a simple majority.
Where are we now?
  • Appropriations: In December, Congress passed a Continuing Resolution (CR) to fund the federal government through March 2025 and avoid a government shutdown. In March, Congress passed another CR to fund the government through September 30, 2025 which includes a decrease in non-defense spending and increase in defense spending. The CR also includes a provision that makes it more difficult to oppose the president's tariffs, but lacks more specific funding directives for many programs and priorities that would normally be laid out in a negotiated full-year spending bill, giving the Executive branch additional spending flexibilities.
  • On May 30, the President released his FY 26 budget proposal which largely holds the line on total spending while massively increasing investments in defense and border security. Funding for Head Start, the Social Services Block Grant, and the Child Care Development Block Grant (CCDBG) have small cuts or flat funding (which equates to a cut given inflation). Other programs like the Preschool Development Grant, the Low Income Home Energy Assistance Program (LIHEAP) and the Community Services Block Grant are proposed for elimination. Click here for overviews and click here for more details.
  • Reconciliation: Both the House and Senate have agreed on a budget blueprint, which provides a basic budget framework or 'instruction'. Per their agreement, committees will be required to find a total of at least $4 billion in 'savings' over the next decade. These 'savings' will inevitably result in massive cuts to critical social programs like Medicaid and SNAP, which would also affect available funding for annual appropriations.
  • On Thursday, May 22 the House passed their version of the reconciliation bill, also known as the "Big Beautiful Bill". In it, the House made sweeping cuts to Medicaid, SNAP, energy assistance, and other vital social safety net programs to fund tax breaks for the ultra-wealthy and the President's mass deportation initiatives. The bill then went to the Senate where it underwent further amendments and was subjected to the Byrd Rule, which forced lawmakers to take out a number of provisions.
  • On July 1, the Senate narrowly passed their version of the bill after more than 24 hours of debate. The Senate version of the bill included even harsher provisions than the House version last month. The bill went back the House, with the goal of passing the bill by July 4 (a self-imposed deadline set by Congressional Republicans). If the House made and changes to the Senate version, the bill must go back to the Senate for another vote. The bill would continue to ping pong between houses until both sides can agree on a single, identical bill.
  • On July 3, the House successfully passed the Senate version of the "One Big Beautiful Bill Act" (OBBBA) with a vote of 218-214.
  • On July 4, the President signed the OBBBA into law. Click here for a comprehensive analysis by Holland & Knight.

How the “Big Beautiful Bill” Will Impact Our Communities

FOR IMMEDIATE RELEASE

JULY 8, SAN FRANCISCO - On July 4, 2025 President Trump signed into Law the “One Big Beautiful Bill Act.” Together, Congress and the President made an agreement that cuts over $1 trillion dollars from our health care system and $297 billion in food assistance to offset massive increases in defense spending for mass deportations and detention centers and to pay for tax cuts for the ultra wealthy and corporations.

We are deeply concerned and profoundly disturbed by the cuts in the so-called One Big Beautiful Reconciliation Bill! Let’s be clear… the American people did not ask for this. We hold accountable our California House Representatives who voted for legislation while acknowledging that it will devastate their communities for years to come. That is not sensible leadership and rather cruel abuse of decision making power and public resources.

In California alone…..

  • The Big Beautiful Bill will take away health care from 13.6 million Californians, including 3.5 million children. [CBPP]

  • The Big Beautiful Bill will take food off the table for 11.4% of California households facing food insecurity. [CBPP]

  • The Big Beautiful Bill’s cuts to SNAP will push 57,000 Californian families, seniors, and children back into hunger and poverty each year. [CBPP]

  • The Big Beautiful Bill will force the State of California to find an additional $15.5 billion in its own budget to make up for lost federal funding. [CBPP]

The Bill’s passage will be felt across socio-economic divides, but the heaviest burden will be felt by working Americans who are already struggling to afford basic necessities, especially those already burdened by poverty, systemic racism, and the fallout of past disinvestment. The tactical implementation - e.g. staggering cuts both after the 2026 election or after 2028, and the expiration of taxes on tips and overtime pay after December 2028 - are all timed to hide the deliberate impact of hurt on working people and preserve the power to the richest and most compliant lawmakers.

Despite its title, this bill is not beautiful. It undermines the health, safety, and economic stability of families and opposes the values of a country that claims to care about children and working people. These are not just line items, These are LIFELINES!

For over 40 years resource and referral agencies have stood as pillars within their community, serving as trusted support systems for local families, children, and child care providers. Every year they connect thousands of people with free services, one-on-one assistance, child care referrals, and professional development training. More than anyone, they know that helping people requires compassion, understanding, and support, not deeper cuts and more red tape.

The Big Beautiful Bill sets us back decades of hard-fought progress but together with our members and partners, we will continue working toward our shared vision of an equitable future while rejecting antiquated policies that only perpetuate our existing systems of oppression and exclusion.

Linda Asato

Executive Director

California Child Care Resource & Referral Network (Network)