The result of intense negotiations between the White House and House Republican leadership, the Fiscal Responsibility Act suspends the debt ceiling and outlines government spending cuts.
The bill passed the House Rules Committee by a narrow margin, clearing the first hurdle on Tuesday. The bill is scheduled to be voted on by the House of Representatives on Wednesday night after the Rules Committee. The Senate will begin processing the bill immediately, but a single senator’s use of various procedural tools could delay the process.
The agreement between the parties finalized over the weekend includes:
- Debt ceiling suspended until January 2025
- Discretionary spending caps for 2024 and 2025
- Expands employment requirements for certain adults receiving benefits under the Supplemental Nutrition Assistance Program (SNAP).
- Approximately $28 billion in unobligated COVID-19 funds canceled
- Repurposing $20 Billion of Internal Revenue Service Funds for Non-Defense Discretionary Spending
- Resume student loan repayments in September 2023
- Changes to Environmental Permits for Energy Projects
While some health policy could be included in the bill, such as cutting Medicaid work requirements and Medicare Advantage, negotiators declined to include major health policy changes in the bill. The biggest impact on the healthcare industry will come in the form of the cancellation of COVID-19 relief funds that have been sent to government agencies but not yet spent.
Several programs by the Department of Health and Human Services (HHS) are presumed to permanently cancel non-obligatory balances. Because these numbers are estimates, we cannot be certain about the impact these returns of the COVID-19 Relief Fund will have on future programs.
Below is a breakdown of these programs and activities.
- Public Health and Social Services Emergency Fund Provided funding for coronavirus prevention, preparedness and response at home or abroad. Unobligated fund cancellations are estimated to total $10.419 billion.but The Biden administration is protecting priority investments and securing $5 billion in funding for next-generation vaccines and therapeutics. We will also maintain funding for test procurement capabilities, long-term COVID-19 research, and other critical needs. All of these activities add up to an estimated $10 billion remaining in the fund after cancellation.
- defense production law HHS has been recognized to help address medical supply shortages due to COVID-19. Estimated cancellation value of $864 million. About $800 million will remain after the cancellation, as priority investments, such as strengthening the drug supply chain, are protected.
- Centers for Disease Control and Prevention (CDC) – wide range of activities and program support With an estimated $1.739 billion in reversals, it funded coronavirus prevention, preparedness and response domestically and internationally. This includes grants to states, local governments, territories, tribes and tribal organizations, and funding for global disease detection and emergency response. The Biden administration is protecting priority investments such as those in genomic surveillance and vaccine safety and efficacy, which would leave about $1.5 billion after cancellation, in addition to about $500 million in the Epidemic Rapid Response Reserve Fund. become.
- Food and Drug Administration (FDA) An estimated $123 million in cancellations due to vaccine efficacy and supply chain monitoring. However, some funds are being secured for FDA officials to continue their supply chain surveillance activities.
- Medicare and Medicaid Service Centers – Program Administration, provided funding for national and international coronavirus prevention, preparedness and response. These costs are now available for research and certification programs with priority for nursing home facilities in areas experiencing community transmission of coronavirus.
- funding for test activity, which includes conducting COVID-19 testing, contact tracing and mitigation actions. Conduct a global health effort to combat current and emerging infectious disease threats worldwide.
- funding for Expanding and retaining the public health workforce By awarding state, local and territory public health services and medical reserves.
- funding for Investing in public healthThis includes awarding grants and cooperation agreements for COVID-19 response activities for community health centers and community care. Funding the National Health Service Corps and Nursing Corps. Educational funding for health centers that run graduate medical education. and funding for family planning.
- funding for Mental Health and Substance Use Disorder Programs, which included training for medical professionals. Conduct education and awareness campaigns for health professionals to seek support for mental health and substance use disorders services. Funding grants for health care providers to promote mental health among their staff. Funding education and training of behavioral health workers. Funding for Access to Pediatric Mental Health Care.
- funding for provider To reimburse qualified healthcare providers for healthcare-related costs and loss of income resulting from COVID-19.
- funding for state option Provide qualified community-based mobile crisis intervention services.
- funding for Supporting Skilled Nursing Facilities in Response to COVID-19This includes providing infection prevention support to skilled nursing homes through contracts with quality improvement agencies.
The House and Senate are due to vote on the bill by June 5, the deadline by which Treasury Secretary Janet Yellen said the U.S. government would hit its current debt ceiling and begin defaulting.
