Policy Corner

The Labor-HHS-Education appropriations bill is part of Congress’ hopefully final push to complete the Fiscal Year 2026 process. Annual appropriations fund agency operations but exclude many benefits programs and all tax preferences. What share of federal health subsidies are “discretionary” spending and therefore part of the annual appropriations bills? 10.8 percent. According to the Congressional Budget Office’s January 2025 Spending Projections, by Budget Account, “mandatory” and “discretionary” health outlays for FY2026 were projected to be $1.911 trillion and $280 billion, respectively. Only 12.8% of that spending is discretionary. Among direct spending programs, Medicare ($1,000 billion, net), Medicaid ($695 billion), and the refundable portion of premium tax credits ($115 billion) dominate. The largest discretionary spending health accounts include Veterans Health Administration ($119 billion), National Institutes of Health ($48 billion), and the Defense health program ($40 billion). Granted, some accounts cover health and other services, particularly foreign affairs and domestic social services programs. Those accounts are excluded from the calculations here. In addition, legislation enacted since January 2025 could affect the calculations somewhat. Tax preferences are part of the story too. The Joint Committee on Taxation’s Estimates of Federal Tax Expenditures for Fiscal Years 2025-2029 counts $412 billion in health preferences against corporate and individual income taxes in 2026. $105 billion in subsidies for insurance purchased through health benefit exchanges and $240 billion for the exclusion of employer contributions for health care, health insurance premiums, and long-term […]

The House Judiciary Committee had planned – now delayed – to mark up a balanced budget amendment (BBA) following a hearing last month. Most BBAs would require spending and revenue to balance. Ideally, that would happen over the medium term, not each year.

Americans for Prosperity is committed to making health care affordable, less complex, and more transparent. Patients deserve greater choice and control when it comes to their health care.

This week’s conversation is a golden opportunity for our elected representatives to identify real solutions that make health much more affordable for working families.

Austen Bannan joins Vance Ginn on the Let People Prosper Podcast to discuss his recent “How to Empower Workers” paper and the types of governmental barriers that prevent Americans from pursuing the best careers for themselves and their families.

It’s no secret the rapid buildout of AI data centers is going to, and in some cases already has, increase electricity and energy demands nationwide. Fortunately, President Trump’s statement, along with Microsoft’s announcement, presents a wise solution to address this rise in demand. Microsoft announced an initiative to curb its resource consumption and shield consumers from increased electricity costs while President Trump praised the company’s decision and emphasized that data center companies should pay their own way. Up until now, some decisions made by both data center developers and electrical utilities resulted in ratepayers bearing the costs of increased demand, both projected and actual. Unsurprisingly, polling shows Americans increasingly blaming data centers for increased electricity costs, underpinning why hostility towards the development of data centers have resonated across political and socioeconomic backgrounds. If AI development is to continue and outpace geopolitical competitors, it is fair to expect AI and tech companies to take greater responsibility for meeting their energy needs. Key companies, such as Microsoft, OpenAI, Google, and others, by no means are hurting for capital or income, are, in some cases, advocating for the development of their own energy generating facilities. Expecting data center developers to pay for the energy they consume and the infrastructure needed to connect to the electrical grid is a practical and appropriate approach. This, though a good solution, is only a step in the right direction. To further empower technological innovation, lawmakers must adopt new strategies to address growing energy demands; and a strong pathway is embracing behind-the-meter, co-location […]

Artificial intelligence is becoming an essential tool across healthcare, education, transportation, public safety, elections, and government services. When guided by principles AI can empower individuals, expand opportunity, and strengthen America’s economic leadership while respecting civil liberties and consumer choice.

For now, the likelihood that President Trump will give Congress a budget request on time and before the State of the Union is encouraging. Perhaps it’s even a sign that the federal government is turning the corner on dysfunction, just in time for America to celebrate its 250th birthday.