Opinion: It feels like Groundhog Day as we once again watch Congress wrestle with how to fund government without saddling Americans with higher taxes. The typical Washington playbook always seems to revolve around one of two ideas: raise taxes or pile on more debt. Both should be nonstarters for conservatives who believe government should live within its means like the rest of us have to and let hardworking American families keep more of what they earn.
This struggle and its impact on families comes into acute focus as health care costs rise across the nation. But it doesn’t have to be this way. There is a common-sense path forward that would both lower health care costs for employees and raise revenue for the federal government without adding new taxes.
Recently introduced by Senator Tim Scott (R-SC), the Strengthening Benefit Plans Act of 2025 is a common-sense, revenue-raising measure that’s exactly the kind of reform Republicans should champion: it unlocks private-sector money tied up by outdated Washington regulations, supports responsible employers, lowers costs for workers, and strengthens our federal balance sheet.
The only thing standing in the way is the usual government red tape.
Currently, there are billions of dollars of surplus locked away in retiree health accounts. The proposal would allow companies to use those excess assets to fund other active employee benefits, like health insurance.
Right now, many company retiree health accounts are overfunded 175%. This legislation would simply allow those accounts to be reduced to 110% overfunded and the freed-up money to be used to buy down premium costs for employees. Under the new law, companies wouldn’t be able to use the money for anything but other health benefits for their employees—not executive bonuses, not shareholder dividends, not stock buybacks. It simply removes the red tape preventing businesses from putting their own money to better use for their employees.
Taxpayers benefit too. Because when companies voluntarily tap into these assets, they would willingly forgo tax deductions they’d otherwise claim, thus generating federal revenue. It’s a private-sector solution that actually boosts government receipts without new taxes.
Importantly, the bill doesn’t compromise employee fund protections. It keeps in place long-standing safeguards that ensure retiree health benefits remain more than fully funded. The transfer of surplus funds would only be allowed under strict conditions and only to other employee health benefit programs. But right now, money cannot be transfer from the accounts once it goes into them, even if they are 175%, 200%, even 300% overfunded.
The beauty of this approach lies in its simplicity. Instead of asking taxpayers to pay more or letting Washington create another spending program, it gives responsible employers the freedom to make better use of what they already have. It’s the kind of efficiency that only the private sector can deliver, and that Washington should encourage—not block.
Conservatives often talk about “unleashing” the economy and cutting bureaucratic waste. This is exactly what that looks like in practice. Billions of private dollars are sitting idle because of well-intentioned red tape that just doesn’t work anymore for modern employers and employees. Freeing that capital would immediately flow back into the economy. That flow would lower health care costs, strengthen employee benefit plans, and even help balance the budget.
As Congressional leaders continue to look for a bipartisan health care package that lowers costs for Americans and seek creative ways to raise revenue, this proposal should be at the top of the list. It’s not partisan. It’s practical. It helps hardworking families whose budgets are pinched, respects the taxpayer money, and rewards responsible employers who have done the right thing for decades.
Republicans should be leading the charge on this. The Strengthening Benefit Plans Act of 2025 is textbook conservative principles: limited government, fiscal responsibility, and economic freedom. It proves that smart policy doesn’t require new taxes or new bureaucracy, just the courage to gut stale regulations and let the private sector do what it does best.
Congress has a narrow window to act. We can’t miss it.
About the author: Pam Pollard is a longtime GOP activist who currently serves as the Republican National Committeewoman for Oklahoma and the Director of Finance for the National Federation of Republican Women (NFRW). Previously, she served as Chair of the Oklahoma Republican Party and Treasurer of the NFRW and was President of Pollard Campaign Accounting & Consulting.