Appropriations
President Trump has endorsed a long-term continuing resolution (CR), but securing its passage will be an uphill climb. A key sticking point is a Republican push to incorporate spending cuts identified by the Department of Government Efficiency (DOGE) into the CR. Some see this move as a way to rally Republican support, while others warn it could increase the likelihood of a government shutdown as Democrats are unlikely to accept the proposed cuts.
House Appropriations Chairman Tom Cole (R-OK) has suggested that House Republicans could pass a year-long CR without Democratic support if President Trump fully backs the effort. The Trump administration has also submitted its list of requested funding anomalies for inclusion in the CR. While the details have not yet been widely covered, early reports indicate significant requests, including $30 billion in Pentagon transfer authority, funding for veterans’ medical care, ICE detention, and a pay raise for junior enlisted personnel.
Cole has also suggested continuing work on a FY 2025 appropriations, with a topline funding level of $1.678 trillion, even after passing a long-term CR. The idea would be for Congress to reach a full-year agreement that eventually supersedes the CR, and Senate Appropriations Chair Susan Collins (R-ME) has expressed support for this strategy. Cole is aiming for the House to take up a CR next week, allowing the Senate time to act before the current funding measure expires. With the March 14 funding deadline approaching, time is short to gain 218 votes in the House and 60 in the Senate to advance such a proposal.
Budget
This week, House Republicans passed their budget resolution after overcoming intense intraparty opposition, marking a significant step toward advancing President Trump’s legislative agenda through reconciliation. However, the budget resolution continues to face hurdles because Senate Republicans, who prefer a two-bill approach, have already signaled they will not accept it as written. Points of contention include the size and permanency of a proposed tax measure, treatment of Medicaid, the debt limit, and much more.
Hill Updates
- Senate rules may complicate Republican’s drug cost reduction package, as commercial pharmacy intermediaries’ regulations may not qualify under procedural rules, but Medicare and Medicaid pharmacy benefit managers regulations could qualify for inclusion in a reconciliation bill.
- The Senate Committee on Health, Education, Labor and Pensions (HELP) has scheduled a confirmation hearing for FDA commissioner nominee Marty Makary on Thursday, March 6, at 10 a.m.
- Additionally, the Senate HELP Committee will hold a confirmation hearing for NIH Director nominee Jay Bhattacharya on Wednesday, March 5, at 10 a.m.
- On Wednesday, March 5, at 10:15 a.m., the House Labor, Health and Human Services, and Education Subcommittee will hold its Member Day hearing.
Administration Updates
- HHS has removed a strategic plan for promoting and overseeing artificial intelligence (AI) in healthcare, signaling the Trump administration’s shift in direction. The plan aimed to promote private sector innovation and public-private partnerships, while also reducing regulation. Trump has tasked his economic advisers and the White House Office of Management and Budget with developing an AI action plan.
- On Thursday, February 27, the CDC released a report on the impact of the human papillomavirus (HPV) vaccine on cervical precancer incidence. The report highlights a significant 79–80% decline in cervical precancers among young women aged 20–24, the group most likely to have been vaccinated. These findings reinforce the effectiveness of HPV vaccination and support public health recommendations to vaccinate children at ages 11–12, with catch-up vaccination available through age 26.
- On February 25, President Trump signed a new executive order reaffirming his commitment to making medical service prices more public and transparent. The order follows years of slow compliance from hospitals and insurance companies with previous policies, which required hospitals to publish their prices and insurance companies to list their negotiated prices. The new executive order aims to expand the reach of current initiatives but requires regulatory action or legislation.
- On February 25, the Government Accountability Office (GAO) reissued their report on the Department of Defense’s (DOD) PFAS-related costs and congressional reporting gaps. The reissued report includes comments from the DOD.
- This week, the NIH announced the postponement of FDA-NIH Rare Disease Day 2025, originally scheduled for February 27–28. The two-day event aimed to provide information to the rare disease community, including updates on FDA and NIH efforts to promote research and product development for underserved populations.
- On February 26, The Office of Management and Budget and the Office of Personnel Management issued a memo to agency leaders with guidance on how to conduct their reductions in force following President Trump’s executive order to optimize the federal workforce.
- HHS Secretary Robert F. Kennedy Jr. has proposed to strip public participation from much of the business his department conducts, a move that comes amid major upheaval across federal health agencies.
Health Policy Updates
- A new type of bone marrow transplant can cure sickle cell disease with only half of the donor’s cell proteins matching, according to a clinical trial published in the New England Journal of Medicine. The procedure would expand the donor pool and cost less than one-quarter of the price of innovative gene therapies for the condition. The study found that 95% of the 42 people with severe sickle cell disease were alive two years post-transplant, with 88% considered cured.
- A federal judge has ordered CVS Health Corp. to comply with a document request from the US Federal Trade Commission, a win for the agency in its ongoing conflict with drug benefits middlemen. The order requires CVS to produce documents by February 28.
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