On Saturday evening, President Biden and Speaker McCarthy reached a tentative deal to raise the current debt ceiling, with both making concessions in H.R. 3746, the “Fiscal Responsibility Act of 2023.” Among its provisions, the Act would suspend the debt limit through to January 2025, cap non-defense discretionary spending at 2023 levels for one year followed by a 1% increase in 2025, claw back unallocated COVID-19 funding, expedite permitting in specific energy projects, and impose work requirements for certain welfare programs. The Act was debated and advanced in a hearing held by the House Rules Committee yesterday evening by a narrow vote of seven members in favor and six opposed.

Given the slim majorities for House Republicans and Senate Democrats, the deal will need to rely on bipartisan support before being enacted. Contingents of both parties in both chambers have signaled apprehension to support the Act, with some indicating no intention to get it floor votes, including a group of at least 30 Republicans and several Democrats. The deal is intended to avoid the updated deadline for a default announced by Treasury Secretary Yellen, which is now June 5.

Speaker McCarthy had announced that he intended for members of Congress to have 72 hours to read the 99-page Act prior to a floor vote, and two Republicans on the House Rules Committee announced their intention to oppose bringing the Act to the floor prior to the Committee’s hearing. Additionally, some House Democrats announced their intention to vote against the Act this morning. There is a tentative plan for the House to begin the process for the Act to get a vote this afternoon with the vote ultimately planned for 8:30PM tonight, though plans remain fluid as negotiations continue.

Emphasizing an inability to pay the FDA staff required to conduct reviews of potential treatments and diagnostics, FDA Commissioner Califf stated “I won’t be able to pay people to review the applications that are in play” to Bloomberg News. Given that a government default would deprive agencies from funding, we look forward to an agreement that would avoid delaying access to the therapeutics on which Patients rely.

On May 23, the House Committee on Oversight and Accountability held a hearing entitled “The Role of Pharmacy Benefit Managers in Prescription Drug Markets Part I: Self-Interest or Health Care?” Several witnesses testified before the Committee, including pharmacists, the President of the Community Oncology Alliance and the Executive Director of Families USA. While the hearing incorporated comments directed towards both manufacturers and PBMs, the majority of comments highlighted the role that PBMs have played in driving unaffordable healthcare costs with opaque business practices.

On May 24, the House Energy & Commerce Committee held a hearing that included a markup of 19 bills, one of which was H.R. 3290, sponsored by Rep. Bucshon (R-IN). The bill is intended to support transparency and oversight of the 340B program, and it moved with bipartisan support.

On May 25, several bills that are supportive of the life sciences ecosystem in New Jersey, or are worth noting, were passed by the Assembly:



• A165 (Carter/Kennedy/Timberlake) - Establishes "New Jersey STEM Scholars Grant Pilot Program" in Department of Education.
• A4294 (McKeon/McKnight/Stanley) | S2824 (Vitale/Pou) - Requires DOBI to conduct study on impact of certain changes to individual and small group health insurance markets.
• A5137 (McKeon/Park) | S3480 (Vitale/Pou) - "The Small Business Health Insurance Affordability Act"; revises certain requirements for individual and small employer health benefits plans.
• S553 (Zwicker/Conaway/Atkins) - Adds technology transfer duties to New Jersey Commission on Science, Innovation and Technology.
• A4693 (Tully/Chaparro/Carter/Wimberly) - Establishes "Scientific Conference Grant Program"; appropriates $250,000.

Speaker Coughlin introduced legislation A1 which would provide a 50% credit on senior’s property tax bills, capped at $10,000. The proposal was met with immediate opposition by Governor Murphy, who is keenly focused on allowing the CBT surcharge to sunset with the passage of the 2024 budget. Speaker Coughlin also introduced two additional bills to address healthcare affordability. A2 increases the income eligibility threshold and eliminates the asset test for Medicare Savings Programs. A3 raises income eligibility for the PAAD (Pharmaceutical Assistance to the Aged and Disabled Program) and Senior Gold Prescription Discount Program. Under the legislation, an applicant with an income equal to or less than 400 percent of the federal poverty line is eligible for PAAD. In 2023, 400 percent of the federal poverty line is $58,320 for an individual and $78,880 if married. The bill also eliminates the Senior Gold income threshold to capture all seniors and individuals with disabilities.

To read a description of the bill package, click here.

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