FY24 Spending Bill and FY25 Budget Request Highlight OME Priorities
Published March 20, 2024
By AACOM Government Relations
Advocacy Appropriations Federal Policy Military Medicine OME Advocate Osteopathic Recognition Osteopathic Representation Osteopathic Research Veterans Affairs
- Happening just days apart, passage of the initial FY24 spending package and the release of the President’s budget request for FY25, highlight several osteopathic medical education (OME) priorities.
- On March 9, 2024, the President signed the first package of six FY24 spending bills, P.L. 118-42, which included funding for Military Construction, Veterans Affairs and Related Agencies; Agriculture, Rural Development, Food and Drug Administrations and Related Agencies; and Transportation, Housing and Urban Development and Related Agencies.
- In addition to the veterans OMT report language highlighted above, the VA spending bill delivers a $2.3 billion increase over FY23 to provide essential health services for more than 9.1 million veterans, including services for rural health, homelessness prevention and behavioral and mental health.
- Teaching Health Centers, Community Health Centers and the National Health Service Corps (NHSC) receive increased funding retroactively applied from October 1, 2023 through December 31, 2024 (see below for more).
- The bill eliminates Medicaid disproportionate share hospital (DSH) cuts for FY24 and delays FY25 DSH cuts to January 1, 2025. It also extends the Medicare-dependent hospital and enhanced low-volume hospital programs through December 2024.
- Within the Agriculture spending bill, funding is provided for the Rural Development, Community Facilities account for eligible projects including medical or dental clinics and healthcare facilities. Within the Rural Development, Distance Learning and Telemedicine Program account, funding may be used to connect medical professionals with patients in rural areas.
- While this initial package of appropriations bills avoided any contentious policy riders, it did not reauthorize some important health provisions like the SUPPORT Act, Pandemic and All Hazards Preparedness Act and telehealth as a separate benefit. They could be included in the second batch of funding bills due March 22, 2024, but more likely will be discussed in an end-of-year legislative package.
- On March 11, 2024, the President released his $7.3 trillion budget request for FY25. AACOM will provide a more comprehensive analysis in the next edition.
- The FY25 numbers will be lower than last year's requests due to the agreed upon budget caps from the Fiscal Responsibility Act of 2023. Top line discretionary Health and Human Services (HHS) funding numbers are being reported as:
- $130.7 billion for HHS
- $50.1 billion for NIH, a 6% increase from FY23
- $1.5 billion for ARPA-H, consistent with funding from FY23
- $8 billion in discretionary for HRSA, a 17% decrease from FY23
- $4.3 billion in discretionary funding for CMS, a 17% increase from FY23
- $9.7 billion in discretionary funding for CDC, a 4.3% increase from FY23
- $387 million in discretionary funding for AHRQ, a 4% increase from FY23
- $8.1 billion for SAMSHA, an 8% increase from FY23
- $8.2 billion in mandatory spending for IHS, an 18% increase from enacted FY23