This Week (February 10 - 14)

This week, the House and Senate are in session and the Senate is expected to vote on Mr. Kennedy's nomination for HHS Secretary.

House Veterans' Affairs Subcommittee on Health will hold an oversight hearing on "Roles and Responsibilities: Evaluating VA Community Care."

• Date: Wednesday, February 12 at 2:15pm ET
• More information available here.

House Ways and Means Health Subcommittee will hold a hearing on "Modernizing American Health Care: Creating Healthy Options and Better Incentives."

• Date: Tuesday, February 11 at 2 pm ET
• More information available here.

Senate Special Committee on Aging will hold a hearing on "Optimizing Longevity: From Research to Action."

• Date: Wednesday, February 12 at 2:15pm ET

• More information available here.

House Oversight Subcommittee on Delivering on Government Efficiency will hold a hearing "The War on Waste: Stamping Out the Scourge of Improper Payments and Fraud."

• Date: Wednesday, February 12 at 10am ET
• More information available here.

Last Week (February 3 - 7)

Health Care Highlights

Progress on reconciliation continues. House Republican leaders had hoped to announce as soon as today a framework for a tax bill ahead of a potential committee-level markup of an FY2025 budget resolution next week, the first step toward unlocking the budget reconciliation process that Republicans want to use to extend Tax Cuts & Jobs Act (TCJA) provisions expiring at the end of 2025 with only Republican votes. On Thursday (February 6), President Trump met with about a dozen members representing disparate factions of the House GOP, including the Freedom Caucus group of conservatives, broke a logjam of differing perspectives, and House Budget Committee Chairman Jodey Arrington (R-TX) was cited Thursday evening as suggesting members were close to clinching a deal. However, on Friday (February 7), Fox News reported that House Speaker Mike Johnson (R-La.) said details were unlikely to come until Monday, unless faster progress is made.

The primary dispute among House Republican members has been the amount of spending cuts that should accompany a tax bill, and the related matters of the baseline and duration of tax cut extensions, which will play a big role in the cost of the package. Senate Budget Chairman Lindsey Graham (R-SC) said he may mark up an FY2025 budget resolution next week after Senate Republicans released a budget framework.

Senate confirms several nominees. This week, the Senate continued its confirmation work, voting 53-47 to confirm Russell Vought as director of the Office of Management & Budget and voting 77 — 23 to confirm Doug Collins as US Department of Veterans Affairs Secretary. Dr. Mehmet Oz, President Trump's nominee to lead the Centers for Medicare & Medicaid Services (CMS), also began meeting with senators on Capitol Hill this week, which is a first step before his committee hearings. The Senate held it first cloture vote to start the process to confirm HHS Nominee Bobby Kennedy, Jr., which passed 52:47. His nomination process will continue next week.

House passes bill to combat fentanyl. On Thursday (February 6), the House voted 312-108 to pass the HALT Fentanyl Act (HR 27), a bill to permanently classify fentanyl as a Schedule I drug.

House Democrats ask GAO to oversee drug price negotiation program implementation. On Wednesday (February 5), House Democrat leaders on the Energy and Commerce, Ways and Means, and Education and Workforce Committees sent a letter to the US Government Accountability Office (GAO) asking it to monitor the Medicare Drug Price Negotiation Program to ensure compliance the Inflation Reduction Act.

Trump signs EOs on tariffs for Canada, Mexico, and China. On Saturday (February 1), President Trump signed Executive Orders (EOs) imposing tariffs on Canada, Mexico, and China, effective February 4, citing "the tide of illicit drugs," specifically fentanyl, coming into the US from these countries as part of the impetus. On February 3, both Mexico and Canada announced they had reached agreements with President Trump to pause their 25% tariffs on all imports (10% on Canadian energy resources) for one month in exchange for the countries increasing military presence at the US' northern and southern borders. Prior to the agreement, Canada had announced it would impose 25% tariffs on certain imports from the US. The China EO imposes an additional 10% tariffs on imports from China and took effect February 4. In response, China's Ministry of Finance announced beginning February 10 it would impose a 15% tax on certain types of coal and liquefied natural gas and a 10% tariff on crude oil, agricultural machinery, certain cars and pickup trucks. China also imposed new export controls on dozens of metal products and related technologies.

Trump issues EO on deregulation. On Friday (January 31), President Trump signed an EO that requires agencies to identify 10 existing rules, regulations, or guidance documents to be repealed for every new rule, regulation, or guidance issued. The EO directs federal agencies to ensure the total incremental cost of all new regulations, including repealed regulations, finalized in fiscal year 2025 "be significantly less than zero."

Federal external communications freeze update. On Thursday (February 6), the Centers for Disease Control and Prevention (CDC) published its Morbidity and Mortality Weekly Report. The weekly report has not been issued since the federal communications freeze was first reported on January 21. The freeze was expected to be lifted on February 1, but federal agencies have not confirmed when the communications freeze will be removed. The original memo said exceptions would be made on a case-by-case basis. The CDC on Thursday (February 6) also issued a health alert on an Ebola outbreak in Uganda.

CMS issues statement on collaboration with DOGE. On Wednesday (February 5), the Centers for Medicare and Medicaid said two senior agency workers, one focused on policy and one focused on operations, were working with DOGE to ensure "appropriate access to CMS systems and technology." The statement came after media reports that DOGE workers were working with CMS to identify examples of potential fraud or waste. On Thursday (February 6), Bloomberg separately reported that Food and Drug Administration staff received an email directing them to examine "anything related to Covid" and contracts that would "be deemed wasteful by an average citizen if made public."

Health agencies implement DEI, gender EOs. On Friday (January 31), Inside Health Policy reported that HHS had confirmed it was updating its websites to comply with an Office of Personnel Management memo directing them to remove references to diversity, equity and inclusion (DEI) and gender identity by 5 p.m. Friday (January 31). The memo was issued to implement Trump's EOs signed on January 20: "Defending Women from Gender Ideology Extremism and Restoring Biological Truth to the Federal Government" and "Ending Radical And Wasteful Government DEI Programs And Preferencing."

Trump EOs, actions prompt new lawsuits. In recent weeks, several lawsuits have been filed to challenge or halt Executive Orders and other executive actions taken by the Trump administration.

• DOGE access to federal systems. DOGE has been working across federal agencies to identify potential efficiencies and is facing several lawsuits. On Thursday (February 6) a federal district court restricted access to Treasury Department data systems, which include Medicare beneficiary information, in a case brought by AFL-CIO. A separate lawsuit has been filed challenging DOGE's access to Department of Labor systems and on Friday (February 7) a federal judge declined the temporary hold, saying labor unions failed to show proper standing.
• Deferred resignation for federal workers placed on hold. On Thursday (February 6), a federal judge froze implementation of the Office of Personnel Management's deferred resignation program, allowing federal workers to resign with full pay and benefits through September 30. A hearing in the case is scheduled for Monday (February 10).
• USAID worker layoffs may be put on hold. On Friday (February 7), a federal judge indicated he would temporarily halt executive efforts to dismantle the U.S. Agency for International Development and place the agency's 2,200 employees on administrative leave. The Wall Street Journal on Thursday (February 6) reported additional layoffs at federal health agencies could come as soon as next week. However, the White House has not confirmed those reports.
• Gender-affirming care for children. On Tuesday (February 4), PFLAG National, GLMA, and transgender individuals and their families filed a lawsuit challenging President Trump's EO that states federal agencies shall not "fund, sponsor, promote, assist, or support the so-called 'transition' of a child from one sex to another." The plaintiffs argue that the EO will cause harm by denying access to physician-prescribed, medically recommended care.
• Federal funding freeze prompts confusion, legal battle. On Friday (January 31), a federal judge in Rhode Island granted a temporary restraining order to block the OMB's now-rescinded federal funding freeze, in response to a lawsuit from Democratic attorneys general from 22 states and the District of Columbia. Previously, a federal judge in the District of Columbia issued an injunction on the freeze in a lawsuit filed by several coalitions of nonprofits. Since the funding freeze there have been numerous reports of federal payment portals being unavailable, including those funding community health centers. NIH announced it would no longer support "indirect costs" such as administrative and facility expenses not directly related to a scientific project. The rate of support is expected to fall from the current 27% of costs to 15% of costs. The change is expected to affect academic research institutions and foundations.

Hearings, Markups, and Other Committee Activity

Senate Finance Committee votes to advance Robert F. Kennedy Jr. nomination for Health and Human Services Secretary. On Tuesday (February 4), the Senate Finance Committee voted 14-13, with Republicans voting in favor and Democrats voting against, to advance Robert F. Kennedy, Jr.'s nomination to serve as the Department of Health and Human Services Secretary. Mr. Kennedy could lose up to three Republicans plus all Democrats and still be confirmed for the role.

• More information available here.

Senate Finance Committee held a hearing "to Consider the Nomination of Jamieson Greer, of Maryland, to be United States Trade Representative, with the rank of Ambassador Extraordinary and Plenipotentiary." On Thursday (February 6), the Committee heard testimony from President Trump's nominee to be United States Trade Representative (USTR), Jamieson Greer. During the hearing, Greer fielded questions on numerous topics, including President Trump's proposed tariffs for Canada, Mexico, and China, as well as their potential impact on pharmaceutical supply chains and active pharmaceutical ingredient production.

• More information available here.

House Energy & Commerce Health Subcommittee held a hearing on "Combatting Existing and Emerging Illicit Drug Threats." On Thursday (February 6), the Subcommittee heard from a panel of witnesses representing law enforcement, providers, and addiction specialists on the importance of increasing access to substance use and mental health services. During the hearing, Republican members focused many comments on the need to increase border security to stem the flow of fentanyl while Democrats spoke critically of the Trump administration's policies on medical research funding.

• More information available here.