Full-Year Appropriations and Extensions Act of 2025 extends F&A protection

President Trump signed the Full-Year Continuing Appropriations and Extensions Act of 2025 March 15, keeping the government open through Sept. 30, the end of the federal fiscal year (FY). The act stopped a scheduled government shutdown and funds non-defense federal agencies and programs at approximately FY 2024 levels.

The law extends statutory language preventing the administration from imposing a 15% cap on Facilities and Administrative (F&A) cost reimbursement. The American College of Radiology^® (ACR^®) previously reported the intent of the National Institutes of Health (NIH) to cut research F&A reimbursement; however, a temporary restraining order was put in place to halt implementation of the cuts as there are multiple lawsuits pending in the courts..

ACR joined a coalition letter urging prioritization of robust NIH funding in lawmakers’ federal FY 2025 appropriations bill and preservation of existing protections against cuts to reimbursements for NIH grantee F&A costs. NIH funding encompasses support for radiology research, which includes a wide range of diagnostics, treatments and therapeutics that benefit patients and their families.

Congress nonetheless failed to include an increase to the Medicare Physician Fee Schedule (MPFS) conversion factor in this legislation. Therefore, the current MPFS conversion factor is approximately 2.8% below the 2024 conversion factor.

ACR will continue to work with our colleagues across the healthcare profession to include long-term Medicare payment reform in the government funding package expected later this year.

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