05 May 2025 This Week in Health Policy for May 5 Both the House and Senate are in session this week, with committees continuing to complete work to prepare for reconciliation markups. Senate Finance Committee will hold a hearing to consider the Nominations of James O'Neill, to be Deputy Secretary of Health and Human Services, and Gary Andres to be an Assistant Secretary of Health and Human Services.
House Oversight Health Care and Financial Services Subcommittee will hold a second hearing on Examining the Growth of the Welfare State
Reconciliation update. Last week, several House Committees began drafting their respective parts of a budget reconciliation bill to extend Tax Cuts & Jobs Act (TCJA) provisions expiring at the end of 2025, provide border security funding, and cut mandatory spending. The House Ways and Means Committee and the Energy and Commerce Committee, which have jurisdiction over taxes and key health care spending cuts, are now expected to hold their markups of reconciliation legislation the week beginning March 12, rather than next week, as Republican leaders had suggested. The delay will give the Committees more time to draft policies for markup and address concerns President Trump raised in a Thursday (May 1) meeting with Republican leaders regarding proposed Medicaid cuts and his desire to have more pharmaceutical policies, including a Most Favored Nations-type policy, included in the markup. After all House committees have passed their sections, the House Budget Committee will need to combine the legislative text before the bill can be brought to the House floor for a vote. House Speaker Mike Johnson (R-LA) is aiming for the House to pass the bill before Memorial Day, and to have a final version to President Trump for his signature by July 4. House passes supply chain bill. On Monday (April 28), the House passed under suspension of rules, by voice vote H.R. 2444, Promoting Resilient Supply Chains Act of 2025, which authorizes the Department of Commerce to strengthen American supply chains for critical industries and emerging technologies by working with the private sector and U.S. government partners to anticipate and prevent future supply chain disruptions before they happen. In the process, it will also identify opportunities to grow manufacturing capacity and jobs, and reduce costs for American consumers. Ways and Means Republicans send letter to CMMI. On Monday (April 28), Ways and Means Republicans sent a letter to Centers for Medicare and Medicaid Services (CMS) Administrator Mehmet Oz and CMMI Director Abraham Sutton requesting that CMMI focus on payment models that generate savings, improve transparency, and improve rural health care access. Supreme Court upholds HHS' Medicare DSH methodology. On Tuesday (April 29), the Supreme Court ruled 7-2 in favor of HHS in a case that challenged how the Department accounts for supplemental social security income-eligible individuals in its calculations for Medicare Disproportionate Share Hospital payments. Hospitals in the case had argued that HHS' method resulted in underpayments of about $1.5 billion annually. EPA highlights first 100 days actions. On April 30, Environmental Protection Agency (EPA) Administrator Lee Zeldin released a recap of 100 environmental actions taken by the agency during President Trump's First 100 Days in office, including recently announced actions to combat PFAS contamination. ASTP/ONC announce deregulation activity. On Tuesday (April 29), the Assistant Secretary for Technology Policy/Office of the National Coordinator for Health IT (ASTP/ONC) published a notice that it is using its nonenforcement discretion regarding the insights condition and maintenance of certification reporting requirements, which include seven measures that health IT developers must annually report beginning in July 2027. ASTP/ONC said the enforcement discretion would take effect on July 1, 2027 and last until the Department removes or revises the rule. HHS unveils universal vaccine platform. On Thursday (May 1), HHS announces a new universal vaccine platform called Generation Gold Standard that aims to protect against multiple strains of a virus, including influenza and coronaviruses. The initiative will be led by BARDA. HHS said clinical trials of universal influenza vaccines are scheduled to begin in 2026. HHS issues report on pediatric gender-affirming care. On Thursday (May 1), HHS published a report that examines transgender care, calling into question standards issued by the World Professional Association for Transgender Health and instead advocating for increased use of behavioral therapy. White House releases FY 2026 "skinny" budget request. On Friday (May 2), the White House published a "skinny budget," that outlines the Administration's plans for about a quarter of the federal budget, including several health care agencies. Overall, the budget requests a 22% cut to domestic spending, including a 26.2% cut to the US Department of Health and Human Services (HHS) budget. The White House requests $500 million for the Making America Healthy Again Commission and proposes several cuts to other agencies, including:
The budget request also would consolidate several programs within agencies and eliminate other programs, including the Administration for Strategic Preparedness and Response Hospital Preparedness Program and the Community Services Block Grant. The budget also would reorganize USAID into the Department of State with $2.4 billion in cuts. The White House is expected to release a more comprehensive budget request later this month. Click here for a list of related documents. White House publishes life sciences investments. On April 29, the White House published a list of "new US investment," highlighting companies that have committed to investing in US business and manufacturing. The list includes several pharmaceutical companies, including Johnson & Johnson, Roche, Eli Lilly, Novartis, Merck, Regeneron, Sygene International, LGM Pharma as well as biotech companies, including Thermo Fisher, and Amgen. The list also includes other health care companies, including Abbott Laboratories. Trump signs EO targeting medical school accrediting organizations. On April 25, President Trump signed an executive order that directs the Department of Education Secretary to hold accrediting firms, including the Liaison Committee on Medical Education and the Accreditation Council for Graduate Medical Education, accountable for requiring institutions to engage in "unlawful discrimination" through DEI programs. Federal worker union rights. On April 25, a D.C. district judge granted the National Treasury Employees' Union request for a preliminary injunction, blocking President Trump's March 27 executive order, eliminating collective bargaining rights at FDA and other agencies. House Republicans launch caucus on US medicine production. On April 24, Reps. Buddy Carter (R-GA), Clauia Tenney (R-NY), and Gus Bilirakis (R-FL) launched the American-Made Medicines Caucus, which will focus on promoting policies to onshore and "friendshore" pharmaceutical manufacturing and reduce the US' reliance on adversarial countries for essential medications. Senate HELP Committee releases 340B report. On April 24, Senate Health, Education, Labor, and Pensions (HELP) Committee Chair Bill Cassidy (R-LA) released a report that explores how covered entities use revenue from the 340B Drug Pricing Program and proposes legislative reforms to improve transparency in the program and ensure patients directly benefit from the discounts. Tariffs and health care costs. On April 23, a group of 12 Democratic state attorneys general filed a lawsuit with the U.S. Court of International Trade (CIT), challenging President Trump's use of International Economic Emergency Powers Act (IEEPA) to enact new tariffs on U.S. trading partners. In the complaint, the Oregon AG stated that the Oregon Health & Sciences University (OHSU) has seen the costs of medical testing kits purchased through a pharmacy partner increase by 20%. HHS targets synthetic food dyes in US food. On April 22, HHS and the FDA announced plans to phase out petroleum-based synthetic dyes from US food supply by the end of 2026 and accelerate its review of natural food dye alternatives. NIH issues new grant guidelines. On April 21, NIH issued a Notice of Civil Rights Term and Condition of Award update that alerted domestic NIH grant recipients that they must now certify that they are not in violation of federal antidiscrimination laws when accepting grant funding. Specifically, the notice requires grant recipients to certify that they do not "operate any programs that advance or promote DEI, DEIA, or discriminatory equity ideology" and do not and will not "engage in, a discriminatory prohibited boycott." NIH added that it may terminate financial assistance and recover funds from recipients that are in violation. Trump Administration issues proposed rule on federal workforce. On April 18, the Office of Personnel Management issued a proposed rule that seeks to create a new category of federal employees ("Schedule Policy/Career") for those with policy-related duties. The proposed new category would remove federal civil service protections for an estimated 50,000 employees and make them "at-will" workers, who could be removed from their positions faster. On April 17, President Trump also issued a memoranda that extends the hiring freeze on federal civilian employees through July 15, 2025. FDA issues new policy on advisory committee members. On April 17, the Food and Drug Administration issued a policy directive that "limits" individuals employed at companies regulated by the FDA from serving as official members on FDA advisory committees. President Trump signs drug pricing EO. On Tuesday (April 15), President Trump signed an executive order (EO) that directs the heads of various federal agencies to take actions intended to lower the price of prescription drugs. The EO contains several directives intended to address criticisms of the Inflation Reduction Act, including the Pill Penalty, Medicare Part D redesign, prescription drug importation and the selection and negotiation process under the Drug Price Negotiation Program. For more details click here. Trump issues memo on illegal immigrants' use of SSA funds. On Tuesday (April 15), President Trump issued a presidential memorandum that directs the leaders of HHS, the Department of Labor, and the Social Security Administration to take reasonable steps to ensure ineligible immigrants do not receive funds from Social Security Act programs, such as Medicare and Medicaid. The memo also directs HHS and the attorney general to examine fraud within CMS programs. Senate Appropriations Committee held a hearing on "Biomedical Research: Keeping America's Edge in Innovation." On Wednesday (April 30), the Committee held a hearing during which they heard from a panel of witnesses representing scientific societies, research institutions, and a patient advocate. During the hearing, members spoke of the importance of investing in biomedical research agencies and programs across the federal government, with both the Chair Susan Collins (R-ME) and Ranking Member Patty Murray (D-WA) speaking critically of the NIH's proposed cap on indirect costs. Witnesses discussed the negative effects that would come from reduced investment in biomedical research.
House Veterans' Affairs Subcommittee on Oversight and Investigations held a hearing on "Answering the Call: Examining VA's Mental Health Policies." On Wednesday (April 30), the Subcommittee held a hearing during which they heard from representatives of the Veterans Health Administration and the VA Office of Inspector General. The hearing discussion focused on ways to improve mental health care for veterans and potential regulatory barriers to care.
House Energy and Commerce Committee advanced six health care bills. On Tuesday (April 29), the Committee marked up six bills related to public health, all of which passed with bipartisan support:
Document ID: 2025-0984 | |||