Summary
Over the weekend, Senate Majority Leader John Thune (R-SD) indicated plans to begin moving the chamber’s budget reconciliation resolution as soon as Wednesday, with a vote-a-rama expected to start on Thursday. The resolution is likely to represent a compromise between the House and Senate versions, and includes a minimum of $3 billion in spending cuts for the Senate Committees and at least $1.5 trillion in spending cuts for the House Committees, providing Republicans flexibility to craft their cuts. Prior to this though, Senators will await a decision from the Senate parliamentarian on whether they will be able to use “current policy baseline,” which would allow Republicans to extend the 2017 tax cuts without any cost.
Pharmaceutical Tariffs
President Trump plans to impose numerous tariffs beginning on Wednesday, but it is not exactly clear what the tariffs will look like at this point. Regarding pharmaceutical tariffs, there is uncertainty whether these tariffs will come on Wednesday or later, and there is some speculation that the tariffs could either be a uniform 25 percent tariffs or reciprocal tariffs that reflect any subsidies foreign governments use to support specific domestic industries. The Brookings Institute examines how such tariffs may impact drug prices, onshoring of pharmaceutical production, and potential shortages, while the Biotechnology Innovation Organization (BIO) warns that recent survey results indicate that potential pharmaceutical tariffs could impede access to cures and stifle innovation.
Regulatory Update
The Office of Management and Budget (OMB) completed reviewing an interim final rule regarding the unaccompanied children program. OMB is also reviewing the following:
- CY 2026 Medicare Advantage: Final rule making changes to Medicare Advantage and the Medicare Prescription Drug Benefit (Part D) and the final rule for the CY 2026 Rate Notice, which is statutorily required to be released by April 7.
- FY 2026 Medicare Payment Rules: Proposed rules updating payments for acute care hospitals and long-term care hospitals, hospice providers, inpatient psychiatric facilities, inpatient rehabilitation facilities, and skilled nursing facilities. The proposed rules are slated for April.