Congress Funds the Government and Short Shutdown Ends

Congress approved and the president signed into law a $1.2 trillion appropriations package on Feb. 3, that includes funding for key health programs, ending the partial government shutdown that began Jan. 31.

The spending package funds the Pentagon and U.S. Departments of Health and Human Services, Labor, Housing and Urban Development, Transportation and Education through Sept. 30. It funds the Department of Homeland Security until February 13, creating a short timeframe for Congress to come to an agreement on unresolved immigration provisions.

Provisions in the package supported by ACR^® provide $47.2 billion for NIH’s base budget, including $415 million (0.9% increase) in new discretionary spending for the agency, as compared to $46.8 billion total for NIH in fiscal year (FY) 2025; and maintains funding for the Advanced Research Projects Agency for Health (ARPA-H) at $1.5 billion (unchanged from FY 2025). The package rejects the FY 2026 President’s Budget Request proposal that included an $18 billion cut to NIH and a $500+ million cut to ARPA-H. Additionally, the package preserves support for facilities and administrative (F&A) expenses, extending statutory language preventing the administration from imposing a 15% cap on F&A cost reimbursement.

The spending package also authorizes and extends other health programs, including telehealth flexibilities and extension of the 1.0 floor on the Medicare work Geographic Practice Cost Index (GPCI) until 2027. It includes funding for community health centers and new requirements on hospital-owned off-campus outpatient departments to obtain unique, separate national provider identifier (NPI) numbers. Specifically, it contains reforms for pharmacy benefit managers; reauthorization of Dr. Lorna Breen Health Care Provider Protection Act until 2030, which funds programs to support healthcare professionals’ mental health; Medicare multicancer early detection screening coverage until 2031; and continued FDA authority to issue pediatric priority review vouchers for treatments for rare diseases until 2029.

For more information or if you have questions, contact Katie Grady, ACR Government Affairs Director.