Scuttled Government Spending Plan Included Provisions Sought by HR

The bipartisan government funding bill failed this week due to opposition from the incoming Trump administration and turmoil in Republican ranks leading to the possibility of a government shutdown. The original bill would have extended current spending levels through March 14, 2025, and included several HRPA-supported provisions. 

• While Speaker Johnson pivoted to plan B in the wake of opposition and put forth a “clean” spending bill with non-essential provisions removed, including the employer provisions, the bill failed in a vote on Thursday night only to be resurrected less than 24 hours later.

 What was at stake: The original bill had several notable provisions, including: 

•  Job training reauthorization. The long awaited bill reauthorizing the Workforce Investment and Opportunity Act titled A Stronger Workforce for America Act, has been a priority for employers as well as lawmakers.

• PBM reform. Reforms required pharmacy benefit managers to pass through 100% of rebates to employers and provide detailed data on prescription drug costs to employers and the federal government.

• Extension of HDHP coverage of telehealth. Provisions would extend through 2026 allowing high-deductible health plans to cover patients’ telehealth visits before they hit their deductible.

What’s next:  Lawmakers have been trying to make a deal to keep the government funded with possible outcomes dwindling.

• Back to Plan B, a vote was scheduled Friday evening in the House without the debt limit and PBM language. The House negotiated bill passed by a wide margin and will be sent to the Senate. This cleaner stopgap bill reduces it size from 1,500 to under 200 pages and avoids a government shutdown. The health care extensions above were among additional provisions included but not the PBM reforms. 

• Shutdown is still possible, there is still a Democrat held Senate and White House who will have their say, though it is likely they will opt to keep the lights on.

Yes, but… While we may get some of the healthcare reforms originally included in Johnson’s Plan B, action on many other non-essential provisions, including WIOA, are likely delayed until the 119th Congress. 

Why it matters: House Speaker Mike Johnson’s misalignment with President-elect Trump and many House Republicans on the spending bill has led to calls for his ouster and portends continued conflict on legislation, including tax reform, the debt ceiling, and government funding.