$1 Trillion Shift: GOP Bill Ties Healthcare Reform Funding to Fed Interest Payments

A Republican lawmaker has proposed a plan to fund his Great American Healthcare Act by redirecting $1 trillion in interest payments from the Federal Reserve to banks over the next decade.

The plan, sponsored by U.S. Rep. Eric Burlison of Missouri, would allow the estimated savings to offset the cost of implementing the healthcare legislation.

Burlison's bill aims to expand eligibility for Health Savings Accounts, increase contribution limits, and require hospitals and insurance brokers to show real dollar prices instead of estimates.

However, experts warn that halting interest payments could lead to banks pulling out their reserves, eroding the Federal Reserve's control over economy-wide interest rates. This could result in higher interest rates for national debt interest payments, which topped $1 trillion in fiscal year 2025.