Summary
Congress is beginning to reach its final sessions days before August recess, with the House planning to depart on Thursday, while the Senate’s last scheduled day is July 31. This week, both chambers will continue their work on the FY appropriations process. The House Appropriations Committee has a full week of markups scheduled, and the Senate has teed up a vote for the Military Construction, Veterans Affairs, and Related Agencies bill. Following August recess, both chambers will return on September 2 and will have a just a few short weeks to wrap up the appropriations work.
Bipartisan Health Care Package
Republicans are seeking to revive last year’s bipartisan health care package by the end of year that included proposals as such pharmacy benefit manager (PBM) reform and a two-year extension of the COVID-19 telehealth flexibilities. However, following the enactment of the One Big Beautiful Bill Act and the passage of the recissions package, Democrats’ desire to work in a bipartisan way will hinge upon how Republicans will address the enhanced premium tax credits that are set to expire at the end of the year. While House Ways & Means Committee Chair Jason Smith (R-MO) recently stated that extending the tax credits was a nonstarter, several Senate Republicans, including Thom Tillis (R-NC), Josh Hawley (R-MO), Dan Sullivan (R-AK), and Lisa Murkowski (R-AK) are interested in Congressional action to extend the credits. Any significant action on a potential package will likely not occur until after the appropriations process is complete.
MAHA Update
Secretary of the Department of Health and Human Services (HHS) Robert F. Kenendy Jr. named Matt Buckham as a new Acting Chief of Staff after who senior staffers left. Heather Flick Melanson and Hannah Anderson, who were both brought in by the Trump Administration, were fired by Secretary Kennedy last week. Buckham’s experience is mostly at conservative think tanks like the Heritage Foundation and American Accountability Federation, and he has been working as the HHS White House liaison. Notably, the American Accountability Federation, which Buckham co-founded, developed a “DEI Watchlist” with pictures and details on HHS staffers who worked on issues like health equity or climate change or otherwise perceived to be part of DEI practices. This development is the latest in a series of changes, including to HHS advisory panel personnel and processes, that Secretary Kennedy is making to shape the agency according to his agenda.
International Health Regulations
Last week, Health and Human Services Secretary Robert F. Kennedy, Jr. and Secretary of State Marco Rubio jointly announced the United States’ formal rejection of the 2024 amendments to the World Health Organization’s International Health Regulations (IHR), citing concerns over vague language that could grant the WHO excessive authority to impose global measures such as lockdowns or travel restrictions. The officials criticized the amendments as threats to national sovereignty, civil liberties, and constitutional rights, arguing they could lead to censorship and politically driven responses rather than effective public health actions. The decision aligns with President Trump’s broader agenda to withdraw from the WHO, halt funding, and reject binding international health commitments. The 12-month withdrawal process began in January through an Executive Order, and if finalized, the U.S. would not be bound by WHO pacts, including its recently adopted global pandemic accord to ensure poorer countries have access to vaccines.
HHS Staffing
According to reports, the Centers for Medicare and Medicaid Services (CMS) is hiring around 100 new employees to support preventive care initiatives through its Innovation Center, despite recently laying off nearly 300 workers agency-wide. Former employees affected by the reduction in force say they were told they cannot apply for the new positions, raising concerns about hiring transparency as CMS moves forward with its “Make America Healthy Again” agenda.
Dr. George Tidmarsh, a Stanford adjunct professor and former pharmaceutical executive, has been appointed as the new head of the Food and Drug Administration’s (FDA) Center for Drug Evaluation and Research (CDER), replacing acting director Dr. Jacqueline Corrigan-Curay. The Center is tasked with evaluating the safety and effectiveness of most medications seeking market entry in the U.S. According to the FDA press release, Dr. Tidmarsh has led the successful clinical development of seven FDA-approved drugs and served as founder and CEO of multiple biopharmaceutical companies focused on oncology and critical care medicine.
Regulatory Update
The Office of Management and Budget completed reviewing an interim final rule titled, “Administrative Simplification: Modifications to NCPDP Retail Pharmacy Standards. OMB is also reviewing the following:
- Medicare:
- FY 2026 Medicare Payment. Final FY 2026 payment updates to the acute care hospitals and long-term care hospitals, hospice facilities, skilled nursing facilities, inpatient rehabilitation facilities, and inpatient psychiatric facilities. These final rules are typically published around August 1.
- CY 2026 Medicare Advantage/Part D Policy. Final CY 2026 policy and technical changes to the Medicare Advantage, Medicare Prescription Drug Benefit, and Medicare Cost Plan Programs, and PACE
- Medicaid:
- Gender-Affirming Care. A proposed rule titled, “Medicaid Program; Prohibition on Federal Medicaid Funding for Sex Trait Modification Procedures Furnished to Children and Youth.”
Immigration Status. A final rule titled, “Medicaid Eligibility Changes Under the Affordable Care Act of 2010; Giving States Freedom to Use Immigration Information to Determine State Residency for Medicaid Eligibility.” The final rule is part of the Trump administration’s efforts to increase federal oversight on states using Federal Medicaid funding for the health care of undocumented immigrants.
- State Directed Payments. A proposed rule titled, “Medicaid Managed Care-State Directed Payments.” The proposed rule appears intended to advance a presidential memorandum released on June 6, which directs HHS to “eliminate waste, fraud, and abuse in Medicaid, including by ensuring Medicaid payments rates are not higher than Medicare, to the extent permitted by applicable law.”
- Prescription Drugs:
- Nutrition:
- Head Start. A notice from the Administration for Children and Families titled, “Publish Request for Information: Nutrition Services in Head Start Programs