April 3, 2007

On March 29, the House narrowly passed its FY 2008 Budget Resolution (H. Con. Res. 99) by a vote of 216-210. The House Budget Resolution includes $54.246 billion for discretionary health programs. This is a 4.1 percent increase over the final FY 2007 amount, but not as high as the increase approved by the Senate.

On March 23, the Senate passed its Budget Resolution (S. Con. Res. 21) 52 to 47. This bill includes an amendment introduced by the Senate Labor-HHS-Education appropriations subcommittee chair, Senator Tom Harkin (D-IA) and subcommittee ranking member Senator Arlen Specter (R-PA) that increases funding for health-related programs (Function 550) by $2.2 billion above the $54.815 billion provided in the underlying resolution. This $2.2 billion would be used to restore NIH funding to the FY 2005 inflation-adjusted level; provide increases at the CDC and continue facilities construction and revitalization; and restore funding for Health Professions Training Programs to the FY 2005 levels. These recommendations are not binding on appropriators, however.

The Budget Resolution also includes a number of budget-neutral reserve funds that require offsets, including cuts in other federal programs or revenue increases. Specifically, one fund reflects the interest of the committee in creating a "new federal or public-private entity" to conduct comparative effectiveness research-where pharmaceuticals, medical devices, and medical procedures used to treat the same conditions are evaluated for their relative safety, effectiveness, and cost. The Agency for Healthcare Research and Quality (AHRQ) currently conducts this research, as authorized under the Medicare Modernization Act. Adoption of the Budget Resolution would not require Congress to act on the priorities recommended through these reserve funds; it would provide only a blueprint should Congress pursue these priorities in FY 2008.

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