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Government Affairs Home > Labor-HHS Appropriations

Labor-HHS Appropriation FY 2009

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American Recovery and Reinvestment Act

On February 17, President Obama signed the "American Recovery and Reinvestment Act" (H.R. 1, P.L. 111-5). The House approved the conference agreement on the $787 billion economic recovery package on February 13 by a 246-183 vote, with no Republicans supporting the measure. The Senate approved the bill later the same day by a 60-38 vote, with Republican Senators Susan Collins (Maine), Olympia Snowe (Maine), and Arlen Specter (Pa.) voting in favor of the package. House and Senate negotiators filed the conference agreement on H.R. 1 on February 12.

AAMC President and CEO Darrell G. Kirch, M.D., praised the measure, stating, "The federal funding included for research, medical education, and patient care will help ensure that the nation's medical schools and teaching hospitals will continue to be regional economic engines. At the same time, this new support will strengthen the missions of these institutions to advance medicine, educate the next generation of doctors, and care for their local communities."

The conference agreement includes $311 billion in discretionary funding, including the following programs of interest to academic medicine.

National Institutes of Health: The conference agreement provides $10.4 billion for NIH. Of this amount, $8.2 billion is appropriated to the Office of the Director, with $7.4 billion designated for transfer to the Institutes, Centers, and Common Fund in the same proportion as the FY 2009 appropriation. The conference agreement adopts the Senate guidance that, to the extent possible, the $800 million retained in the Office of the Director "shall be used for purposes that can be completed within two years, with priority placed on short-term grants that focus on specific scientific challenges, new research that expands the scope of ongoing projects, and research on public and international health priorities." The conferees also included legislative language that excludes the NIH funds in the recovery package from the set-aside requirements of the Small Business Innovation Research and Small Business Technology Transfer programs.

The conference agreement also provides $1.3 billion for the National Center for Research Resources (NCRR), with $1 billion for "competitive awards for the construction and renovation of extramural research facilities" and $300 million for "shared instrumentation and other capital equipment." The conference agreement includes a House proposal to waive non-Federal match requirements for extramural facilities and a statement that the conferees "expect NCRR will give priority to those applications that are expected to generate demonstrable energy-saving or beneficial environmental effects." In addition, the conference agreement also provides $500 million for the Buildings and Facilities account to be used for construction and renovation of NIH intramural buildings.

NIH has posted a number of documents relating to the ARRA funding, including Requests for Applications and Notices on NIH Challenge Grants in Health and Science Research (RC1); Competitive Revisions and Administrative Supplements; Shared Instrumentation; and Facilities Construction, Renovations, Repair and Improvements.

During Senate consideration of its version of H.R. 1 on February 3, the Senate adopted an amendment supported by Senator Specter, Senate Labor-HHS-Education Appropriations Subcommittee Chair Tom Harkin (D-Iowa), and Senate Majority Whip Dick Durbin (D-Ill.) to add $6.5 billion to the funding provided in the House version of the bill, bringing the total funding for NIH to $10 billion. Senator Specter reportedly insisted on the inclusion of the $10 billion in the final conference agreement as a condition for his support of the package.

Agency for Healthcare Research and Quality: The conference agreement provides $700 million to AHRQ for comparative effectiveness research; of that funding, $400 million is to be transferred to the NIH Institutes, Centers, and the Common Fund, to conduct or support comparative effectiveness research. Additionally, $400 million is provided to support comparative effectiveness research at the discretion of the Secretary of Health and Human Services.

Health Professions: The conference agreement provides $500 million to the Health Resources and Services Administration (HRSA) for health professions workforce development through scholarships, loan repayment, and grants to training programs for equipment. An accompanying explanatory statement allocates $300 million of this funding for the National Health Service Corps (NHSC), with $75 million to remain available through Sept. 30, 2011, for "extending service contracts and the recapture and reallocation of funds in the event that a participant fails to fulfill his or her term of service." The conference agreement also designates 20 percent of NHSC funds for field operations.

The remainder of the HRSA health professions funding is to be allocated to "all the disciplines trained through the primary care medicine and dentistry program, the public health and preventive medicine program, the scholarship and loan repayment programs authorized in Title VII (Health Professions) and Title VIII (Nurse Training) of the PHS Act, and grants to training programs for equipment." Additionally, funds may be used to coordinate cross-state telemedicine activities. The AAMC sent a March 4 letter to new HRSA Administrator Mary Wakefield, Ph.D., R.N., FAAN, requesting that HRSA "prioritize funding for those programs that were most affected by drastic funding cuts in FY 2006," including the Title VII Primary Care Medicine and Dentistry program, the Health Careers Opportunity Program, and the Centers of Excellence, when implementing the Recovery Act funding.

Prevention and Wellness: The conference agreement creates a new "Prevention and Wellness Fund" with $1.0 billion to be transferred by the Secretary to agencies within the Department of Health and Human Services. Within the fund, $300 million is to be transferred for the immunization grant program at the Centers for Disease Control and Prevention (CDC), and $50 million is provided to assist states in reducing healthcare-associated infections. The remaining $650 million is designated for evidence-based prevention and wellness strategies authorized by the Public Health Service Act to address chronic disease rates.

National Science Foundation: The conference agreement provides $2.5 billion for research and related activities at the NSF, including $300 million for the major research instrumentation program and $200 million for academic research facilities modernization.

Department of Energy's Office of Science: The conference agreement provides $1.6 billion for the Department of Energy's Office of Science.

Contacts

Dave Moore, Senior Director
AAMC Government Relations
dbmoore@aamc.org
(202) 828-0525

Matthew Shick, Senior Legislative Analyst
AAMC Government Relations
mshick@aamc.org
(202) 862-6116

Tannaz Rasouli, Senior Legislative Analyst
AAMC Government Relations
trasouli@aamc.org
(202) 828-0525

Abigail Schopick, Legislative Analyst
AAMC Government Relations
aschopick@aamc.org
(202) 828-0525

 

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