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Government Affairs Home > Washington Highlights > July 26, 2002

Congress Sends Emergency Spending Bill to President

July 26, 2002 - Both the House and Senate have approved the long-debated FY 2002 supplemental spending bill (H.R. 4775), clearing the measure for the President. The House passed the conference agreement on the spending bill July 23 by a vote of 397-32; the Senate approved the bill the following day by a vote of 97 to 2.

The bill, which the House passed in late May, had been stalled while the White House and Congress debated how much additional emergency spending above the President's initial request should be provided. The conference agreement totals $28.9 billion - $1.8 billion over the President's request. All funds over the President's request are provided as a "contingent emergency" giving the President discretion on whether they should be spent.

The conference bill includes an additional $417 million for VA medical care. The conference agreement directs VA to distribute all of the funds to the VISNs according to VERA and directs the CMS to issue each VA health care facility a provider number. The conference report states this in no way obligates CMS to reimburse VA for services. The bill also includes $1 billion to avert an estimated shortfall in the Pell Grant program caused by increased program costs due to the economic downturn and the rise in individuals seeking postsecondary education.

The bill includes a provision renaming the National Research Service Award program as the "Ruth L. Kirschstein National Research Service Awards," in honor of the former acting director of NIH. The conference agreement includes a rescission of $30 million for NIH's intramural buildings and facilities account, including $9.3 million rescinded from safety and regulatory compliance and repairs and improvements and $20.7 million rescinded from the Phase I renovation of Building 10. The conferees rejected a Senate proposal to add $72 million in emergency funding for NIH security enhancements.

The conferees also rejected a provision in the House bill reclassifying certain counties in Pennsylvania and New York for purposes of reimbursement under the Medicare program. The conferees did express "in the strongest terms their request that the authorizing committees of jurisdiction, the Senate Finance Committee and the House Ways and Means Committee, develop legislation as soon as possible to address the geographic inequities that exist nationwide in Medicare reimbursement because of the wage indices used."

Information:

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

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