On Tuesday afternoon, December 17th, House Republicans released H.R. 10445, a continuing resolution aimed at averting a government shutdown, but the plan quickly unraveled due to opposition from Elon Musk and President-elect Donald Trump.
The proposed measure sought to extend fiscal 2024 funding for federal agencies and programs through March 14, 2025. Key provisions included over $100 billion in disaster relief, targeted support for rural communities, and aid for farmers and ranchers recovering from economic challenges and natural disasters. The measure also proposed extensions for several expiring authorities, including the Temporary Assistance for Needy Families program, the National Flood Insurance Program, and counter-drone protections. Additionally, it included reforms for pharmacy benefit managers, extended farm programs, and workforce development initiatives.
By late Thursday afternoon, a “new deal” was announced by the House Republican leadership, one endorsed by President-elect Trump, characterized as a “stop gap” measure that included provisions to:
- Fund the government through mid-March 2025;
- Authorize a clean, 1-year farm bill extension;
- Include a $110 billion in disaster aid;
- Clean health care provision extenders; and
- Raise the debt limit for two years.
In the late-night hours of Thursday, December 19th, the U.S. House of Representatives was poised to take action on an updated American Relief Act of 2025.
The updated measure included important priorities for RCRC, including $100 billion in supplemental emergency spending for states impacted by natural disasters and the extension of the Farm Bill for one year. Other highlights of importance for California’s rural counties included provisions that would have:
- Funded the government at current discretionary spending levels through March 14, 2025.
- Provided $100 billion in supplemental emergency spending to aid states affected by natural disasters.
- Provided $10 billion in economic assistance to farmers dealing with crop loss, government overregulation, and market forces outside of their control.
- Extended current Farm Bill programs through September 30, 2025.
- Extended the National Flood Insurance Program through March 14, 2025.
- Extended expiring health care programs through March 31, 2025, fully offset by a reduction in the Medicare Improvement Fund. Includes the following programs:
- Community Health Centers and other public health programs
- Medicare add-on payments for ambulances, certain low-volume and Medicare-dependent hospitals, and rural providers.
- Medicare telehealth flexibilities.
- Delay of scheduled Obamacare cuts to Medicaid Disproportionate Share Hospitals (DSH).
- DEA scheduling authority for fentanyl-related substances.
- Suspended the debt limit through January 30, 2027.
- Reset the PAYGO scorecard to prevent automatic cuts to Medicare, defense, agriculture, and other mandatory programs from taking effect in January.
The Secure Rural Schools (SRS) Reauthorization did not make it into the revised measure. Although SRS reauthorization did pass the Senate earlier this fall and the House champions, Congressmembers Neguse (D-CO) and Kathy McMorris Rodgers (R-WA), worked diligently to advance the bill over the past few days, they were ultimately unsuccessful. They are committed to reintroducing the measure when the 119th Congress convenes on January 3, 2025, mindful that next county payments would normally be made in April and the reauthorization must pass before that time.
Ultimately, on Thursday night, the American Relief Act of 2025 failed passage when the House voted 174-235 against the package under suspension of the rules, which requires two-thirds support from those present and voting for passage. Thirty-eight Republicans voted against the measure, and only two Democrats voted for it. Following the outright defeat of this measure on the floor, Speaker Johnson chose not to attempt to get a rule reported out of the Rules Committee to allow for a floor debate and adoption under a simple majority. As of Thursday night, the House was not expected to hold any additional votes, as Republican leaders meet behind closed doors to chart a path forward.