27 January 2025 This Week in Health Policy for January 27 This week, Senate committees will continue to hold confirmation hearings for President Trump's cabinet appointees. Senate Finance Committee will hold a confirmation hearing to consider the nomination of Robert F. Kennedy Jr. to be Health and Human Services Secretary
Senate Veterans' Affairs Committee will hold a hearing on "Protecting Veteran Choice: Examining VA's Community Care Program."
Trump takes office, rolls back Biden-era EOs. On Monday (January 20), President Trump was sworn into office and issued dozens of executive orders (EOs) and actions on a range of issues including health, trade, and the federal workforce. One of the EOs rescinded 78 others signed by former President Joe Biden, including those related to health care, public health, the COVID-19 pandemic, gender and diversity, equity, inclusion, and accessibility (DEIA) initiatives, and artificial intelligence (AI). Trump also signed several other actions, including an EO establishing his administration's policy on AI, beginning the process to withdraw the US from World Health Organization, and directing federal agencies to end remote work arrangements. One of the EOs directed federal agencies to place all DEIA federal works on administrative leave, while another directed agencies to investigate DEI programs at publicly traded companies, nonprofits, colleges and foundations "that constitute illegal discrimination or preferences" and rescinded a 1965 order banning discrimination in federal hiring. For a more detailed overview of the health-related executive actions click here. For an overview of the non-health executive actions click here. The White House on Friday (January 24) also published a list of actions taken in the first 100 hours. Federal hiring freeze. On Monday (January 20), the Trump administration immediately issued a hiring freeze for new civilian federal employees. The order leaves the freeze in place until the Office of Management and Budget (OMB), the Office of Personnel Management, and the newly established Department of Government Efficiency, called United States DOGE Service (USDS) issue a plan, due within 90 days, to reduce the federal workforce. The IRS would remain under a freeze until otherwise directed by Treasury, OMB, and USDS. Temporary hiring freezes are typical of new administrations, but the order also highlights the Trump administration's goal to reduce the federal workforce. Trump issues regulatory freeze. On Monday (January 20), the Trump Administration paused all regulatory activity for at least 60 days, including issuance of new proposed rules and delaying the effective date of final rules that had not yet taken effect. Under that order, the FDA noticed that it would delay the effective date of a final rule intended to increase access to over-the-counter drugs, the Nonprescription Drug Product With an Additional Condition for Nonprescription Use final rule, until March 21, 2025. Several media outlets have reported that federal health agencies on Tuesday (January 21) also were directed to immediately pause all external communications through at least February 1. In a response to an inquiry from STAT News, an NIH spokesperson said, "HHS has issued a pause on mass communications and public appearances that are not directly related to emergencies or critical to preserving health." The spokesperson added, "This is a short pause to allow the new team to set up a process for review and prioritization. There are exceptions for announcements that HHS divisions believe are mission critical, but they will be made on a case-by-case basis." AI infrastructure project. On Tuesday (January 21), President Trump unveiled an AI infrastructure project, called Stargate led by OpenAI, Oracle, and Softbank. The project includes a $100 billion investment to build data centers in the U.S. for powering AI. Congress continues negotiations and confirmations. In Congress, Republican lawmakers continue to discuss whether and how much to offset tax cut extensions and continue to explore potential payfors, including those that may impact the health care industry. In the Senate, committees continue to hold nomination hearings, and announced the first hearing for HHS nominee, which will be held next week. House Ways and Means Committee held a Member Day hearing on "Matters Within the Committee's Tax Jurisdiction." On Wednesday (January 22), the Committee heard from members on a range of topics under the committee's jurisdiction, including addressing physician pay and rural health, improving coverage for medically tailored meals, the child tax credit, and more. During the hearing, Rep. Buddy Carter (R-Ga.), chair of the Energy and Commerce Health Subcommittee spoke of plans to generate revenue and said, "most of the cuts are going to come from us. We're doing everything we can" and he asked the committee "take a scalpel, not a sledgehammer" to the Inflation Reduction Act.
Senate Health, Education, Labor & Pensions Committee held a hearing on "Starting the 119th Congress." Tuesday (January 21), the Committee held an organizing hearing during which members discussed a range of topics. Health care was not the focus of the hearing, but Committee Chair Bill Cassidy (R-La.) spoke about finding ways to protect gig worker flexibility, while increasing worker access to portable benefits like retirement and health care. Both Cassidy and Ranking Member Bernie Sanders (I-VT) spoke about the Committee's past work on pharmacy benefit manager (PBM) reform and the need to advance the PBM Reform Act and legislation to accelerate access to cost generic drugs.
House Veterans Affairs Committee held a hearing on "Restoring Focus: Putting Veterans First in Community Care." On Wednesday (January 22), the Committee heard testimony from veterans, veterans' advocates, and VA nurses on ways to address the looming physician shortage and improve access to community care for veterans.
Senate Veterans' Affairs Committee held a hearing on the Nomination of Douglas Collins to be Secretary of Veterans Affairs. On Tuesday (January 21), the Committee heard testimony from Douglas Collins, President Trump's nominee to lead the Veterans Affairs. The Committee voted 18-1 to advance Collins' nomination to the full Senate. Sen. Mazie Hirono (D-HI) voted against advancing Collins' nomination, citing concerns about his stance on abortion care.
Senate Homeland Security and Governmental Affairs Committee (HSGAC) and Budget Committee held hearings on Russell Vought's nomination for Office of Management and Budget (OMB) director. This week, the HSGAC committee voted 8-7 vote along party lines to advance Vought's nomination for OMB director. During the Budget Committee hearing on Vought's nomination Democrats raised concerns about potential Medicaid cuts, while Republicans spoke of the need to waste, fraud, and abuse in health care. The Budget Committee will need to vote on Vought's nomination before it can go to the full Senate.
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