Burlison Targets Fed Interest Payments as Healthcare Funding Solution

U.S. Rep. Eric Burlison has proposed an unconventional solution to fund his Great American Healthcare Act: stopping the Federal Reserve from paying interest on bank reserves. The Republican lawmaker claims that redirecting the estimated $1 trillion in interest payments over the next decade would help offset the cost of implementing the legislation.

The bill aims to expand eligibility for Health Savings Accounts, raise yearly contribution limits, and increase price competition by requiring hospitals and insurance brokers to show real dollar prices instead of estimates. It also seeks to extend authority to prescribe low-risk drugs to a broader pool of qualified professionals and give businesses more flexibility in offering group healthcare plans.

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.