The United States Capitol in Washington, D.C. has become the focal point for a bipartisan effort to address the longstanding cap on Medicare-funded residency slots. Nearly three decades ago, Congress implemented a cap on the number of residents and fellows supported by Medicare as part of the Balanced Budget Act of 1997. This cap was intended to control federal spending on graduate medical education (GME) but has contributed to a projected shortage of up to 86,000 physicians by 2036, according to the Association of American Medical Colleges (AAMC).
In recent years, there has been a growing recognition of the need to expand federal support for medical education and residency programs. While previous legislation signed into law by both Republican President Donald Trump and Democratic President Joe Biden added some new residency slots, they were insufficient to address the looming physician shortage. The AAMC has been advocating for lifting the cap and increasing the number of Medicare-funded residency positions to meet the growing demand for healthcare services across the country.
In response to mounting pressure from constituents, particularly in rural areas, members of Congress have introduced the Resident Physician Shortage Reduction Act of 2025. This bipartisan legislation aims to gradually increase the number of Medicare-funded residency positions by 14,000 over seven years. The bill is designed to make key investments in physician training in both rural and urban communities, with the goal of improving access to care for patients nationwide.
Dr. David J. Skorton, President and CEO of the AAMC, emphasized the importance of addressing the physician workforce shortage through legislative action. He highlighted the significant impact that a strained physician workforce has on patient care and the urgent need to expand residency training programs. The Resident Physician Shortage Reduction Act of 2025, along with its House companion, represents a bipartisan commitment to strengthening the physician workforce and enhancing healthcare outcomes for all Americans.
As discussions continue in Congress about the need to lift the cap on Medicare-funded residency slots, it is clear that addressing the physician shortage is a top priority for lawmakers on both sides of the aisle. By investing in medical education and residency training programs, policymakers can ensure that patients receive the high-quality care they deserve, regardless of where they live.
