
President Joe Biden today signed the American Relief Act, 2025 package into law.
The federal government was set to begin shutting down at midnight Friday. The Relief Act gives the government funding to stay open until March 14, 2025.
The signing was the culmination of a legislative battle that led to the first public results Tuesday, when the House posted a 1,547-page anti-shutdown package, the Further Continuing Appropriations and Disaster Relief Supplemental Appropriations Act, 2025, that included many provisions for maintaining current measures that increase reimbursements for Medicare health care, ambulance services and telehealth services providers.
That Further Continuing Appropriations package could have also set new standards for Medicare Advantage plan provider directories, moved toward letting Medicare cover new services that can screen a patient's blood for dozens of different types of cancer at the same time, and required pharmacy benefit managers to pass any discounts they negotiate for Medicare Part D prescription drug plans on to the plans and the enrollees.
President-elect Donald Trump blocked progress on the first package by arguing that Congress should pass a shorter package that would keep the government open and also increase the federal debt ceiling.
The current federal debt limit is an obstacle to extending the tax breaks included in the Tax Cuts and Jobs Act of 2017, including a provision that lightened the impact of the federal estate tax on wealthy families by doubling the estate-size exemption that was in effect before the TCJA came along. The current exemption is $13.61 million for an individual and $27.22 million for a couple that files jointly. It's now set to fall by about 50% Jan. 1, 2026.
Republican House leaders responded to Trump's concerns by developing a shorter anti-shutdown package, the first version of the ARA package, that excluded many of the Medicare provisions in the original package and included an increase in the federal debt ceiling.
When some House Republicans refused to vote for that package, House leaders regrouped and introduced a revised version that left out the increase in the debt ceiling.
Drafters do not seem to have included sections referring directly to life insurance, retirement plans or estate planning, such as a new bill that could help workers roll assets directly from 401(k) plans into annuities.