The November 4 state and local elections across the country sent political shockwaves that quickly reached Capitol Hill. Not long after the results were known, Congress passed a funding package to reopen the federal government after the longest shutdown in U.S. history. While not included in the package, a December vote was promised in the Senate on extending healthcare premium tax credits originally enacted through the Affordable Care Act. The measure is not expected to pass the Republican controlled Senate and House (nor be signed by the President), but healthcare costs and access are once again the focus of policymakers and “affordability” is the new mantra in Washington.

The spending package passed by Congress included a three-bill “minibus” of annual Fiscal Year (FY) 2026 appropriations bills (namely MilCon-VA, Ag-FDA, and Legislative branch) and a Continuing Appropriations Resolution (CR) until January 30 to buy time to finish the nine outstanding appropriations bills. The enacted spending bills largely maintained business as usual for respective federal agencies and provided:

CR

• Extends current FY 2025 funding for programs lacking an enacted appropriations bill until January 30.
• Provides backpay to federal employees impacted by the shutdown, reverses the reduction in force that occurred, and prevents further furloughs during the CR.
• Extends telehealth flexibilities and related Medicare items.
• Does not address the issues of ACA premium tax credits, but the Senate intends to vote on this issue in December.

MilCon-VA

• $945 million for the VA Medical and Prosthetic Research Program, an increase of $2 million over FY 2025, and the previous House and Senate proposals.

Ag-FDA

• $7.07 billion in total funding for the Food and Drug Administration (FDA), an increase of $242.95 million over FY 2025. Overall funding provides $3.43 billion in discretionary funding for FDA, a decrease of $100 million from FY 2025 and $3.64 billion in user fees, an increase of $342.95 million over FY 2025.
  • $1.56 billion in prescription drug user fees, an increase of $133.94 million over FY 2025.
  • $478.17 million in medical device user fees, an increase of $115.79 million over FY 2025.
  • $670.9 million in generic drug user fees, an increase of $57.36 million over FY 2025.
  • $55.84 million in biosimilars user fees, an increase of $24.73 million over FY 2025.
  • $712 million in tobacco product user fees, level funded from FY 2025.

By: Dane Christiansen and Kira Flaherty, Washington Representatives (the Health and Medicine Counsel)