Congress Prepares for Continuing Resolution as Budget Reconciliation Next Steps Remain Uncertain

With the March 14, 2025, deadline to fund the government quicky approaching, Republican leadership unveiled a full-year continuing resolution (CR) over the weekend and plan to vote on the package early this week. The full-year CR would extend current funding levels through September 30, 2025, and prevent a government shutdown, while allowing appropriators time to finalize fiscal year (FY) 2025 bills. President Trump has expressed his support of a CR, and Democrats are likely facing a "yes or no" proposition on the legislation. While the CR would generally extend the funding levels from the FY24 spending, it includes key changes such as:

• Increasing funding for defense spending and immigration enforcement,
• Eliminating all earmarks from FY24 appropriations laws and the $15.9 billion in earmarked projects from FY25 bills,
• Reducing the National Institutes of Health (NIH)’s innovation account funding to $127 million (from $407 million),
• Providing $2.1 billion for the Community Health Center Fund from April 1 through September 30,
• Extending the Teaching Health Center Graduate Medical Education program, the National Health Service Corps and several other health programs through September 30.
• Eliminating $890.8 million in earmarks for healthcare facility construction and Health Resources and Services Administration (HRSA) training grants and
• Extending Medicare telehealth flexibilities until September 30.

Simultaneously, House and Senate leadership are using budget reconciliation to advance President Trump’s agenda and have passed competing budget resolutions. House Speaker Mike Johnson (R-LA) is committed to advancing the House version favored by President Trump, which the chamber passed on February 25, 2025, by a razor-thin vote of 217-215. The House Budget Committee's resolution tasked the Education and Workforce Committee with identifying $330 billion in deficit reductions over the next decade, which may include caps on federal student loans and increased costs to osteopathic medical schools. AACOM strongly opposes these provisions and we encourage you to join us in communicating the detrimental impact they would have on the healthcare industry with your Members of Congress.