Government Shutdown Stalls Drug Discount Program 340B

Originally broadcast October 9, 2025

$44 billion in drugs that help Americans are purchased through a little-known federal discount program called 340B. The program is recognized for successfully helping hospitals, community health centers and others that fund care for low-income patients.  

But that program is now facing big challenges from drugmakers, and the current government shutdown has brought new uncertainty.

Reporter William Newton of 340B Report tells hosts Mark Masselli and Margaret Flinter that the shutdown has delayed approvals for a federal rebate pilot and furloughed key staff. “There are a lot of big question marks,” he says, noting that the delays could jeopardize timelines for hospitals and community clinics that depend on 340B savings.

David Lim of POLITICO adds perspective on how drug manufacturers and policymakers are shaping the future of the 340B program. Together, he and Newton explain how what began as a quiet effort to help safety-net providers has grown into a national discussion about drug prices and access to care.

As Newton explains, “The 340B program may sound niche, but it’s actually the second-largest government prescription drug program, touching every corner of the U.S. health-care system.”

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