Facing a federal funding deadline of Friday, March 14, the House of Representatives this past weekend released a continuing resolution (CR), providing stopgap funding in the federal appropriations process, that would fund the federal government through Sept. 30, mainly at FY24 levels with limited exceptions. Overall, funding for mental health and substance use programs is largely maintained at FY24 levels. The bill reduces funding for the Substance Abuse and Mental Health Administration’s Health Surveillance and Program Support by approximately $144 million.

You can read the text of the CR here, and a summary is available here.

In addition, register for National Council’s webinar Thursday on the CR and potential shutdown.

• The stopgap bill would extend certain Medicare telehealth flexibilities that are currently set to expire March 31, under Section 2207, including the six-month in-person requirement for mental health services, expanded originating sites, and coverage of audio-only services. The CR would extend these flexibilities through Sept. 30.

• The stopgap bill extends CCBHC grant funding at FY24 levels through Sept. 30, meaning current grantees would continue to receive funding during this time.

• The stopgap bill would also delay scheduled reductions to the Medicaid Disproportionate Share Hospitals allotments. Under Section 2401, the bill delays these cuts through April 1.

• House Speaker Mike Johnson (R-LA) said he intends to bring the CR to the House floor for a final vote on Tuesday. He will likely need near-unanimous support from House Republicans to pass the measure, as House Democratic leadership issued a statement yesterday opposing the bill. If the CR passes the House, it is unclear whether there will be enough support for it to clear the Senate, as it would need 60 votes (including at least seven Democrats) to pass.

• If Congress is unable to pass the CR prior to the funding deadline, the federal government will experience a partial shutdown. The Department of Health and Human Services (HHS) FY25 contingency plan, issued in December, explains how HHS staffing and operations would be affected, as well as how activities and services will be impacted if there is a lapse in government funding. In the event of a shutdown, HHS reports that it will furlough approximately 55% of its staff. However, staff who work on mandatory programs, including Medicare and Medicaid, will be retained, and emergency surveillance operations will continue.

The following plans include details on how a lapse in funding would affect specific HHS agencies, including the Substance and Mental Health Services Administration (SAMHSA), the Centers for Medicare and Medicaid Services (CMS) and the Health Resources and Services Administration (HRSA) among others.

• CMS would maintain staff required to operate Medicare and Medicaid; however claims will likely take longer to process. According to the agency contingency plan, CMS has sufficient funding for Medicaid to last through the first quarter of 2025, with additional funding for certain Medicaid grants in subsequent quarters.
• SAMHSA will continue mental health and substance use programs vital to safety and protection of individuals, such as behavioral health disaster response programs, the 988/Suicide Lifeline, and response to emergency situations related to the provision of medication for opioid use disorder. SAMHSA notes that most grants awarded in the prior year will have funds that remain available to be spent by the grantee and that new grantees will not have support in carrying out their activities given the impacts of furloughed staff.
• HRSA will furlough roughly half its staff, and drafting/posting FY 2025 Notices of Funding Opportunities (NOFOs) and reviewing applications for discretionary funded programs would be impacted (which will significantly limit the amount of time for applicants to apply and weaken the agency’s efforts to expand applicant pools).

National Council will continue to provide updates on shutdown-related news as events continue to unfold. If you have any questions related to the potential shutdown or any other policy issues, please reach out to National Council’s Policy & Advocacy team.

Thank you!