Fiscal Year 2026 Appropriations Update

Fiscal Year 2026 Appropriations Update – Congress has continued moving the appropriations process forward ahead of the January 30th deadline to avert a government shutdown, address health extenders, and fund federal agencies for fiscal year (FY) 2026. The following annual appropriations bills have been signed into law: Agriculture-Rural Development-Food and Drug Administration, Legislative Branch, Military Construction-Veterans Affairs, Commerce-Justice-Science, Energy and Water Development, and Interior-Environment. The House of Representatives has also passed a Financial Services and General Government/National Security-Department of State minibus package; a Defense, Labor-Health and Human Services (L-HHS), Transportation-Housing and Urban Development minibus package, and a separate Homeland Security funding bill (H.R. 7147).

 

The bipartisan Consolidated Appropriations Act, 2026 (H.R. 7148) containing the L-HHS agreement and health extenders passed the House on Thursday in a 341-88 bipartisan vote. It contains nearly $117 billion in discretionary funding for the U.S. Department of Health and Human Services (HHS), in line with FY 2025 funding levels and rejecting the deeper cuts to HHS proposed by the President’s budget request. The National Institutes of Health (NIH) would receive $48.7 billion, providing a modest increase. The report language contains new guardrails around the use of multi-year funding by NIH, and would prohibit altering “the manner in which negotiated indirect cost rates have been implemented and applied under NIH regulations.”

 

The LHHS spending bill also includes provisions to reform the pharmacy benefit manager (PBM) industry, including new pricing and distribution disclosure requirements and provisions to delink PBMs’ compensation from the cost of Medicare prescription drugs. The package also extends key health care programs, such as the Medicare dependent hospital program, Medicare telehealth flexibilities, the Acute Hospital Care at Home waiver, and virtual cardiopulmonary rehabilitation services.

 

The likelihood of a partial government shutdown increased over the weekend, with Senate Democrats vowing to oppose funding for the Department of Homeland Security (DHS) in the wake of the Immigration and Customs Enforcement (ICE) shooting in Minneapolis on Saturday. The chamber had been expected to take up a six-bill spending package (including both LHHS and DHS funding) in the coming days. Senate Majority Leader Chuck Schumer (D-N.Y.) has stated that Democrats will not help advance the package as long as it includes DHS funding. Democratic support will be required to clear the 60-vote procedural threshold. The situation is further complicated by the winter storm affecting much of the country, keeping the chamber out of session until at least Tuesday.

 

New Congressional Report Alleges Violation of Antitrust Law by CVS Health – Republican leadership of the House Judiciary Committee has released an interim staff report detailing the results of an investigation that began in 2024 into the business operations of CVS Health. The report accuses the company of possible violations of antitrust law, alleging that CVS discouraged independent pharmacies from working with competitor companies. The committee details how CVS acted to stifle innovation and reduce competition from hub pharmacies. According to documents produced to the committee, CVS “developed plans to establish its own suite of digital pharmacy services and then, instead of competing with hubs on the merits of their services, prevented independent pharmacies from using pharmacy services from hubs.”

 

GOP Lawmakers to Investigate MN Medicaid Fraud – Republicans on the Energy and Commerce Committee have opened an investigation into recent findings of Medicaid fraud in the state of Minnesota. Reps. Brett Guthrie (R-Ky.), John Joyce, MD (R-Pa.), and Morgan Griffith (R-Va.) have sent a letter to Gov. Tim Walz requesting information related to the state’s efforts to combat Medicaid fraud. “The swath of criminal schemes coming to light in Minnesota include overbilling, false records, identity theft, and phantom claims in Medicaid social service and health programs for the elderly and disabled, people struggling with addiction, and homelessness,” the letter states. “To inform the committee’s oversight and potential legislative reforms, we are examining the extent of Medicaid fraud in Minnesota and actions the state has taken, and is taking, to strengthen program integrity.” House Oversight Committee Chairman James Comer (R-Ky.) also announced plans last week to expand his panel’s investigation into findings of fraud on Minnesota’s social services programs. He is requesting that the Temporary Commissioner of the Minnesota Department of Human Services appear for a transcribed interview before the end of the month.

 

Eleanor Holmes Norton Ends Reelection Campaign – D.C. Delegate Eleanor Holmes Norton (D), 88, will not seek reelection in November. Norton has served as the District of Columbia’s nonvoting delegate in the House of Representatives for more than three decades. Her campaign filed a termination notice with the Federal Election Commission over the weekend. She currently sits on the House Committee on Oversight and Reform and the Transportation and Infrastructure Committee.

 

Upcoming Congressional Hearings and Markups

Senate Veterans’ Affairs Committee hearing “Building a 21st Century VA Health Care System: Assessing Efforts to Restructure the Veterans Health Administration;” 4:00 p.m.; January 28

 

Senate Special Committee on Aging hearing “Truth in Labeling: Americans Deserve to Know Where Their Drugs Come From;” 9:30 a.m.; January 29

 

Recently Introduced Health Legislation

H.R.7145 —To amend title XIX of the Social Security Act to establish a definition of essential health system in statute and for other related purposes. Sponsor: Trahan, Lori [Rep.-D-MA-3]; Committees: House – Energy and Commerce

 

H.Res.1010 — Recognizing 2026 as “The Year of The Power of Nurses” in Celebration of the 130th Anniversary of the American Nurses Association; Sponsor: Underwood, Lauren [Rep.-D-IL-14]; Committees: House – Energy and Commerce

 

H.R.7147 — Making further consolidated appropriations for the Dept. of Homeland Security for the fiscal year ending September 30, 2026, and for other purposes; Sponsor: Cole, Tom [Rep.-R-OK-4]; Committees: House – Appropriations; Budget

 

H.R.7148 — Making further consolidated appropriations for LHHS/Defense/THUD for the fiscal year ending September 30, 2026, and health extenders; Sponsor: Cole, Tom [Rep.-R-OK-4]; Committees: House – Appropriations; Budget; Ways and Means

 

H.R.7164 — To expand cost-sharing reductions with respect to qualified health plans offered through an Exchange, and for other purposes; Sponsor: Schrier, Kim [Rep.-D-WA-8]; Committees: House – Energy and Commerce; Ways and Means

 

H.R.7165 —To amend section 495 of the Public Health Service Act to require inspections of foreign laboratories conducting biomedical and behavioral research to ensure compliance with applicable animal welfare requirements, and for other purposes; Sponsor: Steube, W. Gregory [Rep.-R-FL-17]; Committees: House – Energy and Commerce

 

H.Res.1013 — Amending the Rules of the House of Representatives to establish a Permanent Select Committee on Aging; Sponsor: Magaziner, Seth [Rep.-D-RI-2]; Committees: House – Rules

 

H.R.7170 —To remove linguistic barriers to participation in Gun Violence Prevention Strategies; Sponsor: Chu, Judy [Rep.-D-CA-28]; Committees: House – Judiciary; Energy and Commerce

 

H.R.7171 — To amend the Omnibus Crime Control and Safe Streets Act of 1968 to award grants for providing legal resources for petitioners seeking extreme risk protection orders, and for other purposes; Sponsor: Chu, Judy [Rep.-D-CA-28]; Committees: House – Judiciary

 

H.R.7173 — To amend the Public Health Service Act to ensure scientific integrity in the activities of the National Institutes of Health and prevent the diversion of funds to politically driven activities, and for other purposes; Sponsor: DeGette, Diana [Rep.-D-CO-1]; Committees: House – Energy and Commerce

 

H.R.7177 — To amend title 18, United States Code, to prohibit discrimination by abortion against an unborn child on the basis of Turner syndrome; Sponsor: Feenstra, Randy [Rep.-R-IA-4]; Committees: House – Judiciary

 

H.R.7181 — To amend the Toxic Substances Control Act to clarify the exemption for replacement parts, and for other purposes; Sponsor: Hudson, Richard [Rep.-R-NC-9]; Committees: House – Energy and Commerce

 

H.R.7184 — To amend the Controlled Substances Act to prevent the importation of illicit pill press machines with the intent to counterfeit substances, and for other purposes; Sponsor: McDowell, Addison P. [Rep.-R-NC-6]; Committees: House – Energy and Commerce; Judiciary

 

H.R.7189 —To amend title XVIII of the Social Security Act to provide coverage for certain HIV prevention services furnished by pharmacists under the Medicare program; Sponsor: Pocan, Mark [Rep.-D-WI-2]; Committees: House – Energy and Commerce; Ways and Means

 

H.Res.1017 — Recognizing the threat of air pollution and extreme heat to maternal and infant health, and expressing the sense of the House of Representatives that meaningful interventions must be rapidly and equitably developed and deployed to address the unique vulnerabilities of pregnancy in Latino communities; Sponsor: Barragán, Nanette Diaz [Rep.-D-CA-44]; Committees: House – Energy and Commerce

 

H.R.7196 — To amend the District of Columbia Home Rule Act to prohibit the Council of the District of Columbia from enacting any law to permit euthanasia and assisted suicide in the District of Columbia, and for other purposes; Sponsor: Barrett, Tom [Rep.-R-MI-7]; Committees: House – Oversight and Government Reform

 

H.R.7198 —To amend the Public Health Service Act with respect to the designation of general surgery shortage areas, and for other purposes; Sponsor: Bera, Ami [Rep.-D-CA-6]; Committees: House – Energy and Commerce

 

H.R.7199 — To amend title 38, United States Code, to provide a burial allowance for certain veterans who die at home while in receipt of hospice care furnished by the Department of Veterans Affairs; Sponsor: Bergman, Jack [Rep.-R-MI-1]; Committees: House – Veterans’ Affairs

 

H.R.7212 — To amend the Federal Food, Drug, and Cosmetic Act to provide for the regulation of cannabinoid hemp products, and for other purposes; Sponsor: Griffith, H. Morgan [Rep.-R-VA-9]; Committees: House – Energy and Commerce

 

H.R.7227 — To amend the Public Health Service Act, the Employee Retirement Income Security Act of 1974, and the Internal Revenue Code of 1986 to require that group health plans and health insurance issuers offering group or individual health insurance that provide coverage for mental health services and substance use disorder services provide such services without the imposition of cost-sharing from the diagnosis of pregnancy through the 1-year period following such pregnancy, and for other purposes; Sponsor: Moore, Gwen [Rep.-D-WI-4]; Committees: House – Energy and Commerce; Education and Workforce; Ways and Means; Oversight and Government Reform

Progress on FY 2026 Appropriations

Progress on FY 2026 Appropriations – Congressional progress on completing the fiscal year (FY) 2026 appropriations process continued last week. The House of Representatives passed the Financial Services and General Government and National Security, Department of State, and Related Programs Appropriations Act (H.R. 7006) in a 341-79 bipartisan vote on Wednesday. The package contains $9.4 billion in global health funding, rejecting the deeper cuts to global health proposed by the President’s budget. The bill includes $524 million in appropriations for family planning and reproductive health, nearly $109 million for neglective tropical disease, $300 million for Gavi, the Vaccine Alliance, and $4.6 billion for the President’s Emergency Plan for AIDS Relief. The bill now moves to the Senate where consideration is expected the week of January 26. On Thursday, the Senate passed the Commerce, Justice, Science; Energy and Water Development; and Interior and Environment Appropriations Act (H.R.6938) in an 82-15 bipartisan vote. That package now heads to the President’s desk to be signed into law.

 

Congress has four remaining spending bills to finalize for the current fiscal year. An agreement on the next funding package, including Labor-Health and Human Services, Defense, and Transportation-Housing and Urban Development is anticipated soon. Recent negotiations have focused on language to restrict the White House from providing multi-year research grants for the National Institutes of Health as a single lump sum, as well as to restrict funding for gender-affirming care for minors. A path forward on the Homeland Security spending bill remains unclear; Democrats are demanding changes to Immigration and Customs Enforcement in light of recent events in Minneapolis. Lawmakers face a January 30 deadline to address health extenders, avert another government shutdown, and fund federal agencies for fiscal year 2026.

 

President Releases “Great Healthcare Plan” as Progress on Bipartisan Compromise Stalls – President Donald Trump is asking Congress to act without delay on the “Great Healthcare Plan” released by the White House last week. The plan consists of a framework of policies that support the President’s vision for lowering the nation’s health care costs. It addresses several issue areas, including lowering drug prices and insurance premiums, holding big insurance companies accountable, and maximizing price transparency. The plan would not extend the now expired advance premium tax credits (APTC), with the President having threated to veto any APTC extension that reaches his desk.

 

The release of the President’s plan followed reports that the legislative text of a bipartisan Senate plan to extend the expired Affordable Care Act (ACA) subsidies will not be ready until the end of the month. Negotiators have already coalesced around several APTC policy modifications, including a shorter, two-year extension, an across-the-board minimum $5 premium, a 700% federal poverty level income cap on eligibility, and the extension of open enrollment until March 1. While Sens. Susan Collins (R-Maine) and Bernie Moreno (R-Ohio) – the lead negotiators – had previously indicated that the text could be released last week, disagreements reportedly remain related to abortion funding restrictions.

 

The ACA open enrollment period ended on January 15. Approximately 1.4 million fewer people have enrolled in coverage compared to last year. This figure is less than the 2.2 million decrease projected by the Congressional Budget Office in the case of an APTC expiration, though experts caution that further attrition is likely in the coming months as enrollees face premiums that are more than doubling on average.

 

Senate HELP Committee Advances Four Health Bills – The Senate Health, Education, Labor, and Pensions (HELP) Committee voted unanimously to advance the following health-care bills on Thursday:

  • The Protect Infant Formula from Contamination Act (S. 272), which aims to improve the safety of infant formula through testing of infant formula for microorganisms and toxic elements;
  • Tyler’s Law (S. 921), which would direct the Secretary of Health and Human Services to issue guidance on whether hospital emergency departments should implement fentanyl testing as a routine procedure for patients experiencing an overdose;
  • The Women and Lung Cancer Research and Preventive Services Act (S. 1157), which would direct the Secretary to review the status of research on lung cancer in women and underserved populations; and
  • The Rural Hospital Cybersecurity Enhancement Act (S. 2169), which would require the development of a comprehensive rural hospital cybersecurity workforce development strategy.
  • The bills now await consideration by the full Senate.

 

Grassley Report Details “Gaming” of Medicare Advantage by UHG – Senate Judiciary Committee Chairman Chuck Grassley (R-Iowa) has released a report detailing the findings from his investigation into UnitedHealth Group’s (UHG) Medicare Advantage (MA) billing practices. How UnitedHealth Group Puts the Risk in Medicare Advantage Risk Adjustment asserts that UHG uses its advanced data assets and data analytics capabilities to maximize its workforce’s ability to capture diagnoses. According to the report, the company has also identified opportunities and strategies to increase its capture of untapped risk score garnering diagnoses and uses its provider workforce to implement those strategies. The report notes that other MA organizations also contract with UHG for such diagnosis capture and coding opportunity insights.

 

Republican Study Committee Releases Reconciliation 2.0 Framework – The Republican Study Committee has released a framework for a second reconciliation bill proposing $1.6 trillion in tax and spending cuts. The framework promises to “deliver health care freedom and lower drug prices by redirecting subsidies away from big insurance companies and into the hands of the American people, eliminating regulatory barriers that increase the price of drugs, and promoting choice and competition.” The framework was developed using an AI tool dubbed the “Byrd Bot,” which was developed to generate legislation compliant with the Senate’s Byrd Rule. GOP leadership in both the Senate and House of Representatives have cautioned that there is no consensus on the path forward for a second reconciliation bill.

 

Wyden, Pallone Question Child Immunization Data Measurement Change – Senate Finance Committee Ranking Member Ron Wyden (D-Ore.) and House Energy and Commerce Committee Ranking Member Frank Pallone (D-N.J.) have written to the Centers for Medicare and Medicaid Services (CMS) urging the agency to reverse its decision to drop child immunization measures from the Core Set of Children’s Health Care Quality Measures for Medicaid and the Children’s Health Insurance Program (CHIP). The lawmakers characterize the decision as “a dangerous abdication of the agency’s responsibility to monitor the quality of care provided to nearly half of our nation’s children.” They ask CMS about what evidence it used to determine that vaccination rates are no longer a core measure of child health quality, whether legal reasons exist for modifying these preventative care standards, and whether CMS intends to measure or monitor childhood immunization rates among children with Medicaid and CHIP coverage.

 

Florida Rep. Neal Dunn, MD to Retire – Rep. Neal Dunn, MD (R-Fla.) announced his plans to retire last week, withdrawing his re-election bid to the House of Representatives. Rep. Dunn, a urologist, has represented Florida’s second congressional district since 2017. He currently serves on the House Energy and Commerce Subcommittee on Health.

 

Upcoming Congressional Hearings and Markups

House Budget Committee hearing “Reverse the Curse: Skyrocketing Health Care Costs and America’s Fiscal Future;” 10:15 a.m.; January 21

 

House Veterans’ Affairs Subcommittee on Economic Opportunity legislative hearing; 2:30 p.m.; January 21

 

House Energy and Commerce Subcommittee on Health hearing “Lowering Health Care Costs for All Americans: An Examination of Health Insurance Affordability;” 9:45 a.m.; January 22

 

House Veterans’ Affairs Committee oversight hearing “Community Care Network Next Generation: One Trillion Dollars of Oversight;” 10:15 a.m.; January 22

 

House Energy and Commerce Subcommittee on Environment hearing “Chemicals in Commerce: Legislative Proposal to Modernize America’s Chemical Safety Law, Strengthen Critical Supply Chains, and Grow Domestic Manufacturing;” 2:00 p.m.; January 22

 

House Committee on Ways and Means Hearing with Health Insurance CEOs; 2:30 p.m.; January 22

 

Recently Introduced Health Legislation

H.R.6993 — To direct the Secretary of Veterans Affairs to carry out programs to award grants to eligible entities to conduct research with respect to treatments for traumatic brain injury prospective randomized control trials for neurorehabilitation treatments, and for other purposes; Sponsor: Bergman, Jack [Rep.-R-MI-1]; Committees: House – Veterans’ Affairs

 

H.R.6994 — To amend the Controlled Substances Act to modify requirements relating to the prescription of controlled substances by means of the Internet, and for other purposes; Sponsor: Dunn, Neal P. [Rep.-R-FL-2]; Committees: House – Energy and Commerce; Judiciary

 

H.R.7006 — Financial Services and General Government and National Security, Department of State, and Related Programs Appropriations Act, 2026; Sponsor: Cole, Tom [Rep.-R-OK-4]; Committees: House – Appropriations; Budget

 

H.R.7010 — To amend the Agriculture, Rural Development, Food and Drug Administration, and Related Agency Appropriations Act, 2026, to delay the implementation of amendments made by such Act to the hemp production provisions of the Agricultural Marketing Act of 1946; Sponsor: Baird, James R. [Rep.-R-IN-4]; Committees: House – Agriculture

 

H.R.7023 — To amend the Patient Protection and Affordable Care Act to establish a public health insurance option, and for other purposes; Sponsor: Schakowsky, Janice D. [Rep.-D-IL-9]; Committees: House – Energy and Commerce

 

H.R.7024 — To amend the Agriculture, Rural Development, Food and Drug Administration, and Related Agency Appropriations Act, 2026, to delay the implementation of amendments made by such Act to the hemp production provisions of the Agricultural Marketing Act of 1946; Sponsor: Baird, James R. [Rep.-R-IN-4]; Committees: House – Agriculture

 

S.3642 — A bill to direct the Inspector General of the Department of Health and Human Services to investigate certain payment increases under State programs funded by the Department of Health and Human Services; Sponsor: Marshall, Roger [Sen.-R-KS]; Committees: Senate – Finance

 

H.R.7050 — To amend the Federal Food, Drug, and Cosmetic Act with respect to homeopathic drug products, and for other purposes; Sponsor: Sessions, Pete [Rep.-R-TX-17]; Committees: House – Energy and Commerce

 

H.R.7064 — To require the Secretary of Health and Human Services to conduct a study on strategies for the application of artificial intelligence technologies that can be used in the health care industry to improve administrative and clerical work and preserve the privacy and security of patient data, and for other purposes; Sponsor: Hernández, Pablo Jose [Resident Commissioner-D-PR-At Large]; Committees: House – Energy and Commerce

 

H.R.7071 — To repeal certain funding increases provided under the One Big Beautiful Bill Act to Immigrations and Custom Enforcement, and to reallocate those funds to extend certain healthcare tax credits; Sponsor: Moulton, Seth [Rep.- D-MA-6]; Committees: House – Ways and Means; Judiciary; Homeland Security

 

S.Res.583 — A resolution recognizing 2026 as “The Year of The Power of Nurses” in Celebration of the 130th Anniversary of the American Nurses Association; Sponsor: Merkley, Jeff [Sen.-D-OR]; Committees: Senate – Health, Education, Labor, and Pensions

 

S.3647 — A bill to require the Secretary of Veterans Affairs to establish a program to address bowel and bladder care needs for veterans with spinal cord injuries and disorders, and for other purposes; Sponsor: Moran, Jerry [Sen.-R-KS]; Committees: Senate – Veterans’ Affairs

 

S.3653 — A bill to require the Secretary of Veterans Affairs to carry out efforts to inform veterans of their rights with regards to the receipt of health care, benefits, and services furnished under provisions of law administered by the Secretary, and for other purposes; Sponsor: Blackburn, Marsha [Sen.-R-TN]; Committees: Senate – Veterans’ Affairs

 

S.3677 — A bill to improve transparency and the availability of information regarding dietary supplements by amending the Federal Food, Drug, and Cosmetic Act to require manufacturers of dietary supplements to list dietary supplements with the Food and Drug Administration; Sponsor: Durbin, Richard J. [Sen.-D-IL]; Committees: Senate – Health, Education, Labor, and Pensions

 

S.3688 — A bill to amend title XVIII of the Social Security Act to increase the floor for the practice expense and work geographic indices for certain areas; Sponsor: Sullivan, Dan [Sen.-R-AK]; Committees: Senate – Finance

 

H.Res.1002 — Recognizing the value of the Older Americans Act of 1965 nutrition program in addressing hunger, malnutrition, and isolation, and improving the health and quality of life for millions of our Nations seniors each year; Sponsor: Bonamici, Suzanne [Rep.-D-OR-1]; Committees: House – Education and Workforce

 

H.R.7091 — To direct the Secretary of Veterans Affairs to establish an investigational research and extended access treatment program utilizing innovative treatments and emerging therapies to address conditions with unmet medical needs, and for other purposes; Sponsor: Bergman, Jack [Rep.-R-MI-1]; Committees: House – Veterans’ Affairs

 

H.R.7092 — To amend the Elementary and Secondary Education Act of 1965 to require local educational agencies to include mental health and suicide prevention information on student identification cards, and for other purposes; Sponsor: Carter, Troy A. [Rep.-D-LA-2]; Committees: House – Education and Workforce

 

H.R.7096 — To amend titles XVIII and XIX of the Social Security Act ensure appropriate approval for certain skilled nursing facility and nursing facility nursing aide training and competency evaluation programs under the Medicare and Medicaid program; Sponsor: Estes, Ron [Rep.-R-KS-4]; Committees: House – Ways and Means; Energy and Commerce

 

H.R.7106 — Enhancing Skilled Nursing Facilities Act; Sponsor: Kiggans, Jennifer A. [Rep.-R-VA-2]; Committees: House – Energy and Commerce; Ways and Means

 

H.R.7112 — To require the Secretary of Veterans Affairs to carry out efforts to inform veterans of their rights with regards to the receipt of health care, benefits, and services furnished under provisions of law administered by the Secretary, and for other purposes; Sponsor: Miller-Meeks, Mariannette [Rep.-R-IA-1]; Committees: House – Veterans’ Affairs; Armed Services

 

H.R.7116 — Securing Enhanced Programs, Systems and Initiatives for Sepsis (SEPSIS) Act – To establish programs to reduce rates of sepsis; Sponsor: Norcross, Donald [Rep.-D-NJ-1]; Committees: House – Energy and Commerce

 

H.R.7118 — To amend title XIX of the Social Security Act to clarify that whole genome and whole exome sequencing for children with certain medical needs is covered under the Medicaid program; Sponsor: Peters, Scott H. [Rep.-D-CA-50]; Committees: House – Energy and Commerce

FY 2026 Appropriations Update

FY 2026 Appropriations Update –  The House of Representatives passed a minibus appropriations package last week containing fiscal year (FY) 2026 Interior-Environment, Commerce-Justice-Science, and Energy-Water funding bills. The legislation would reduce funding for the National Science Foundation (NSF) by 3.4%, far less than the 55% cut proposed by the President’s budget. The bill also includes language blocking the imposition of a 15% cap on indirect cost reimbursement for the federal science research agencies funded by the minibus, including NSF, the National Institute of Standards and Technology, NASA, and the Office of Science at the Department of Energy. The Senate intends to bring the package to the floor early this week.

 

House appropriators worked through the weekend to finalize the next government funding package covering State-Foreign Operations, Homeland Security, and Financial Services. The Labor-Health and Human Services (LHHS) spending bill is expected to be among the final appropriations measures to move and be packaged with funding for Defense and  Transportation-Housing and Urban Development. LHHS Subcommittee Chair Robert Aderholt (R-Ala.) has said that several unresolved issues related to his panel’s spending bill remain. Lawmakers face a January 30 deadline to address health extenders, avert another government shutdown, and fund most federal agencies for fiscal year 2026.

 

House Passes APTC Extension, Bipartisan Senate Negotiations Ongoing – The House of Representatives voted last week to extend the enhanced Affordable Care Act (ACA) advanced premium tax credits (APTC) for another three years. Seventeen Republicans joined Democrats in support of a clean extension of the enhanced tax credits, which expired at the end of 2025. Kaiser Family Foundation estimates that out-of-pocket ACA premiums have more than doubled on average with the expiration of the subsidies. The Congressional Budget Office has projected that a three-year extension of the subsidies would cost $80.6 billion over the next decade.

 

While the Senate did not have enough support to pass the same provision in December, the House-passed bill could serve as a vehicle for compromise legislation to address rising health insurance premiums. Bipartisan talks led by Sen. Susan Collins (R-Maine) and Bernie Moreno (R-Ohio) alongside roughly a dozen other senators are taking place. The negotiators are considering several APTC policy modifications, including a shorter, two-year extension, an across-the-board minimum $5 premium, a 700% federal poverty level income cap on eligibility, the extension of open enrollment until March 1, and funding for cost-sharing reduction payments. Senate Majority Leader John Thune (R-S.D.) has suggested that any bipartisan deal must also include a bridge to the expansion of tax-advantaged health savings accounts, income limits, and abortion restrictions.  Reports indicate that the negotiators are close to reaching a deal and that legislative text could be released as early as this week. Americans currently have until January 15 to enroll in marketplace health plans for the remainder of 2026.

 

Sara Carter Confirmed as Drug Czar – The Senate confirmed Sara Carter to lead the Office of National Drug Control Policy (ONDCP) in a 52-48 vote on Tuesday. Carter is a podcast host and former Fox News contributor who has reported on drug trafficking and cartels. While she focused on the issue of the illicit drug supply during her confirmation process, in her role as ONDCP director Carter will also be responsible for overseeing federal policy and funding related to substance use prevention, treatment, and recovery.

 

State of the Union Address to Take Place Feb. 24 – President Donald Trump will deliver his first State of the Union address of his second term on February 24. The President’s speech to lawmakers last March was considered a joint address to Congress. This year’s State of the Union will provide President Trump the opportunity to discuss his legislative priorities for the coming year.

 

Schrier Leads Letter on Childhood Immunization Schedule – Rep. Kim Schrier, MD (D-Wash.) has led a letter signed by 115 other lawmakers urging U.S. Department of Health and Human Services Secretary Robert F. Kennedy Jr. to restore the U.S. childhood immunization schedule. The letter follows a recent announcement that the Centers for Disease Control and Prevention is reducing the number of vaccines routinely recommended for all children from 17 to 11. “Your agency’s decision to overhaul decades of evidence-based science is arbitrary and driven by ideology. This announcement completely bypasses the recommendations made by the previously esteemed Advisory Committee on Immunization Practices (ACIP), a panel that you have replaced with your own hand-picked members, most of whom have long track records of anti-vaccine activism,” the lawmakers argue. “We demand that you reinstate the previous childhood immunization schedule, restore sanctity to the ACIP, and protect the health and wellbeing of children,” the letter concludes.

 

California Congressman LaMalfa Dies at 65 – Rep. Doug LaMalfa (R-Calif.), 65, passed away at the age of 65 on January 6 during emergency surgery. Rep. LaMalfa, a former state legislator, was serving his seventh term in Congress at the time of his passing. He was a member of the Agriculture, Natural Resources, and Transportation and Infrastructure committees. LaMalfa’s sudden death further lessens the GOP’s majority in the House of Representatives. With the resignation of Marjorie Taylor Greene (R-Ga.), which took effect January 6, Republicans now hold just 218 seats in the chamber, affording the party only two defections on any party-line vote with all members present.

 

Hoyer Announces Retirement from Congress  – Rep. Steny Hoyer (D-Md.), 86, has announced his plans to retire from Congress after more than four decades in the House of Representatives. Rep. Hoyer was first elected to Congress in 1981. He served as House Majority Leader from 2007 to 2011 and again from 2019 until 2023. Since stepping down from his leadership post in 2022, Hoyer has served as a senior member of the House Appropriations Committee.

 

Upcoming Congressional Hearings and Markups

House Veterans’ Affairs Subcommittee on Health legislative hearing including discussion draft of the Data Driven Suicide Prevention Act and H.R. 6001, the Veterans with ALS Reporting Act; 2:15 p.m.; January 13

 

Senate Health, Education, Labor, and Pensions (HELP) Committee hearing “Protecting Women: Exposing the Dangers of Chemical Abortion Drugs;” 10:00 a.m.; January 14

 

House Science, Space, and Technology Subcommittee on Research and Technology hearing “Advancing America’s AI Action Plan;” 10:00 a.m.; January 14

 

House Committee on Education and Workforce hearing “Building an AI-Ready America;” 10:15 a.m.; January 14

 

Senate HELP Committee executive session to consider S. 1157 – Women and Lung Cancer Research and Preventive Services Act; S. 921 – Tyler’s Law; S. 2169 – Rural Hospital Cybersecurity Enhancement Act; and S. 272 – Protect Infant Formula from Contamination Act; 10:00 a.m.; January 15

 

House Energy and Commerce Subcommittee on Health and House Committee on Ways and Means hearings with health insurance companies; time TBD; January 22

 

Recently Introduced Health Legislation

H.R.6937 — To amend the Immigration and Nationality Act to eliminate the H-1B program, and for other purposes. Sponsor: Greene, Marjorie Taylor [Rep.-R-GA-14]; Committees: House – Judiciary; Energy and Commerce; Ways and Means

 

H.R.6938 — Making consolidated appropriations for the fiscal year ending September 30, 2026, and for other purposes; Sponsor: Cole, Tom [Rep.-R-OK-4]; Committees: House – Appropriations; Budget

 

H.R.6940 — To direct the Secretary of Health and Human Services to assess how Executive departments address mental health crisis prevention and awareness, and for other purposes; Sponsor: Biggs, Sheri [Rep.-R-SC-3]; Committees: House – Energy and Commerce

 

H.R.6941 — To direct the Secretary of Energy to conduct a study to identify the effects of covered geoengineering projects on the health of humans and the environment, and for other purposes; Sponsor: Crane, Elijah [Rep.-R-AZ-2]; Committees: House – Energy and Commerce

 

H.R.6945 — To amend part A of title IV of the Social Security Act to clarify the authority of States to use funds for pregnancy centers, and for other purposes; Sponsor: Fischbach, Michelle [Rep.-R-MN-7]; Committees: House – Ways and Means

 

H.R.6951 — To amend title XIX of the Social Security Act to repeal the requirement that States establish a Medicaid Estate Recovery Program and to limit the circumstances in which a State may place a lien on a Medicaid beneficiary’s property; Sponsor: Schakowsky, Janice D. [Rep.-D-IL-9]; Committees: House – Energy and Commerce

 

S.3588 — A bill to amend the Public Health Service Act to provide funding for trained school personnel to administer drugs and devices for emergency treatment of known or suspected opioid overdose, and for other purposes; Sponsor: Merkley, Jeff [Sen.-D-OR]; Committees: Senate – Health, Education, Labor, and Pensions

 

S.3593 — A bill to increase the penalties for health care fraud, and for other purposes; Sponsor: Moody, Ashley [Sen.-R-FL]; Committees: Senate – Judiciary

 

H.R.6972 — To amend title X of the Public Health Service Act to require grant recipients to comply with all applicable State and local laws requiring notification or reporting of child abuse, child molestation, sexual abuse, rape, incest, intimate partner violence, or human trafficking, and for other purposes; Sponsor: Smucker, Lloyd [Rep.-R-PA-11]; Committees: House – Energy and Commerce

 

S.3607 — A bill to amend title XVIII of the Social Security Act to provide for expanded coverage of services furnished by genetic counselors under part B of the Medicare program, and for other purposes; Sponsor: Barrasso, John [Sen.-R-WY]; Committees: Senate – Finance

 

S.3604 — A bill to amend the Public Health Service Act to require the Secretary of Health and Human Services to carry out activities to establish, expand, and sustain a public health nursing workforce, and for other purposes; Sponsor: Markey, Edward J. [Sen.-D-MA]; Committees: Senate – Health, Education, Labor, and Pensions

 

S.3599 — A bill to amend the Patient Protection and Affordable Care Act to establish a public health insurance option, and for other purposes; Sponsor: Whitehouse, Sheldon [Sen.-D-RI]; Committees: Senate – Health, Education, Labor, and Pensions

 

S.3598 —A bill to provide for the periodic issuance of up-to-date clinical guidance on addressing the health effects of per- and polyfluoroalkyl substances (PFAS), and for other purposes; Sponsor: Shaheen, Jeanne [Sen.-D-NH]; Committees: Senate – Health, Education, Labor, and Pensions

 

H.R.6974 — To amend title XVIII of the Social Security to permit additional accrediting organizations to approve specialized MA plans for special needs individuals; Sponsor: Arrington, Jodey C. [Rep.-R-TX-19]; Committees: House – Ways and Means; Energy and Commerce

 

H.R.6977 —To provide for the periodic issuance of up-to-date clinical guidance on addressing the health effects of per- and polyfluoroalkyl substances (PFAS), and for other purposes; Sponsor: Dexter, Maxine [Rep.-D-OR-3]; Committees: House – Energy and Commerce

 

H.R.6989 — To amend the Public Health Service Act to require the Secretary of Health and Human Services to carry out activities to establish, expand, and sustain a public health nursing workforce, and for other purposes; Sponsor: Stansbury, Melanie A. [Rep.-D-NM-1]; Committees: House – Energy and Commerce

DEA Extends Telemedicine Flexibilities

DEA Extends Telemedicine Flexibilities – The Drug Enforcement Administration (DEA) has extended Covid-era telemedicine flexibilities for the prescribing of controlled substances through 2026. The flexibilities allow for the prescribing of controlled substances without an initial in-person visit through December 31, 2026; the policies were set to expire at the end of 2025. This is the fourth temporary extension of the flexibilities. The extension provides time for the administration to implement the Expansion of Buprenorphine Treatment via Telemedicine Encounter and Continuity of Care via Telemedicine for Veterans Affairs Patients final rules and for practitioners to comply with the two final rules’ new requirements.

 

FY 2026 NDAA Signed into Law – President Donald Trump has signed the fiscal year (FY) 2026 National Defense Authorization Act (NDAA) into law following months of negotiation between the two chambers of Congress on a compromise version of the must-pass annual defense policy bill. The law includes a provision that will bar Chinese “biotechnology companies of concern” from receiving federal funding. A previous version of the legislation known as the BIOSECURE Act was omitted from last year’s NDAA due to concerns about naming specific biotech companies to be scrutinized. The final NDAA would require the Office of Management and Budget to create a list of biotech companies – like those on the Department of Defense’s list of Chinese military companies – that would be blocked from federal contracts, grants, or loans, and to provide the companies the opportunity to appeal.

 

Physician Lawmakers Raise Concerns with Anthem Facility Administration Policy – Members of both the GOP Doctors Caucus and the Democratic Doctors Caucus have written to the U.S. Department of Health and Human Services (HHS) regarding Anthem Blue Cross Blue Shield’s facility administrative policy, which penalizes hospitals that enable patients to use out-of-network physicians. The lawmakers argue that the new policy undermines the No Surprises Act’s independent dispute resolution (IDR) process and places hospitals in “an untenable position: either compel physician groups to accept reimbursement that cannot sustain high-quality operations or restrict their patients’ access to high-quality clinicians in order to avoid being penalized by Anthem.”  The letter calls on HHS to investigate the legality of this policy and to “question Anthem’s networking tendencies to better understand how they engage, or fail to engage, in networking negotiations with providers.”

 

Trump Administration Awards $50 Billion under Rural Health Transformation Program – The Centers for Medicare and Medicaid Services (CMS) has announced $50 billion in awards under the Rural Health Transformation Program, which was established by the One Big Beautiful Bill Act (OBBBA), the Republican reconciliation law from 2025. All 50 states will receive awards ranging from $147 million to $281 million in 2026; the $50 billion provided under the law will be distributed over ten years. The program was included in the legislation to address the concerns of Sen. Susan Collins (R-Maine) and other Republicans who were worried about the potential impact of the OBBBA on rural hospitals and individuals living in those areas.

 

GAO Report on Distribution of New GME Positions – The Government Accountability Office (GAO) has released a report on the initial distribution of new Medicare-funded physician residency positions. The Consolidated Appropriations Act, 2021 required CMS to distribute 1,000 new Medicare-funded graduate medical education (GME) residency positions to qualifying hospitals through permanent increases to their resident caps. To date, CMS has allocated 600 of the 1,000 new GME positions to hospitals during three annual distributions. Most slots went to urban areas and about half supported primary care. Approximately half of the 393 hospitals that applied received positions.

 

Upcoming Congressional Hearings and Markups

House Energy and Commerce Subcommittee on Health hearing “Legislative Proposals to Support Patient Access to Medicare Services;” 10:15 a.m.; January 8