Efforts to Address the Healthcare Workforce Getting Underway
Earlier this month, both the House and Senate reintroduced the Conrad State 30 and Physician Access Reauthorization Act. AAPPR endorsed the bill prior to its introduction and is working with a coalition of stakeholders to send a letter to the sponsors in support of the legislation. The reauthorization would strengthen the program by clarifying the incentives for physicians and employers to leverage the program, thereby facilitating more international medical graduate (IMG) participation in Conrad 30 programs.
There are several other initiatives we are monitoring around strengthening the healthcare workforce. The Healthcare Workforce Resilience Act, which would recapture 40,000 unused visas and reallocate 25,000 visas to nurses and 15,000 visas to physicians, is poised to be reintroduced this spring. On the graduate medical education side, we anticipate the Resident Physician Shortage Reduction Act will also be introduced this spring, which would provide for an additional 14,000 positions over seven years. We are in touch with these offices and key stakeholder groups to ensure a robust roll out of these bills.
We are also closely monitoring the status of appropriations and funding at key federal agencies. Reductions in funding could lead to cuts to programs, personnel, and grants that provide access to a variety of healthcare services.
Below we provide a larger update on the government funding bill and what the next few months will look like for Congress.
Congress Averted a Government Shutdown: So What?
Congress passed a continuing resolution (CR) that funds the government through September 30, 2025. Unfortunately, the CR did not include language addressing CMS’ 2.83% Medicare physician pay cut and simply extended Medicare telehealth flexibilities through the end of the fiscal year. The GOP Doctors Caucus reportedly secured a commitment from House leadership to address the physician pay cut in the upcoming reconciliation package. However, there is no guarantee this will happen, as offsetting the cost of reversing the cut is challenging—especially given Republican efforts to advance significant tax cuts through reconciliation.
Some lawmakers expressed concerns about the political impacts of a government shutdown on federal agencies and services, which are already under increasing strain. Government shutdowns have broad consequences, particularly for federal workers, contractors, and communities with a significant federal presence. Looking ahead, Congress will soon face a similar high-stakes process when addressing the debt limit, and Republicans may find it even more difficult to pass a bill without bipartisan support.
What Is the Debt Limit?
The statutory debt limit, first enacted in 1917, has been raised over 100 times, serving as a mechanism to allow the government to meet existing financial obligations. In recent years, it has become a political flashpoint, requiring bipartisan agreement—particularly in a divided Congress—giving both parties leverage to negotiate policy concessions. As the so-called “default date” nears, financial market volatility increases, pressuring lawmakers and the administration to reach a resolution, a process the President has expressed reluctance to repeat after facing similar challenges in his first term.
The Treasury Department is expected to announce the “X date” in the coming weeks, likely in June or July, giving Congress roughly three months to act, with Democrats as the minority party poised to use their votes to push for policy priorities and assert congressional authority over fiscal matters.
What Will Congress Do Now?
Republicans will turn their attention to the reconciliation process, which is already fraught with challenges. Reconciliation is a special legislative process that allows certain budget-related bills to pass the Senate with a simple majority so long as they meet certain conditions. A key concern for stakeholders is the potential for deep Medicaid funding cuts. These cuts could force states to reduce provider payments, limit services, or change eligibility rules, creating uncertainty for Medicaid enrollees and healthcare providers alike.
If there is room for bipartisan action in the near future, it would likely occur soon on readying a budget for FY26 and articulating a plan to reauthorize federal health programs that have been operating on temporary extensions since October 1, 2023. Congress may also consider bipartisan reforms to pharmacy benefit manager (PBM) practices, including efforts to increase pricing transparency. We will continue to monitor these developments and encourage you to reach out with any questions.
Closing Word
As political pressures and stakes continue to rise, we are actively engaging with key offices and stakeholders to ensure AAPPR remains at the forefront of discussions on healthcare workforce challenges and the delivery of care. We will share further updates and next steps in the coming weeks.