Health Care Week in Review | Bipartisan Funding Deal Reaches Senate Vote as Partial Shutdown Approaches; CMS Releases Final Rule on Medicaid Waiver of Uniform Tax Requirements

Below is Alston & Bird’s Health Care Week in Review, which provides a synopsis of the latest news in health care regulations, notices, and guidance; federal legislation and congressional committee action; reports, studies, and analyses; and other health policy news. 

Regulations, Notices & Guidance

• On January 26, 2026, the Centers for Medicare & Medicaid Services (CMS) released a notice of proposed rulemaking entitled, Medicare Program: Ensuring Safety through Domestic Security with Made in America Personal Protective Equipment and Essential Medicine Procurement by Medicare Participating Hospitals. This notice of proposed rulemaking solicits public comment on potential options CMS may consider for hospitals participating in Medicare to help foster a more resilient supply chain for American-made personal protective equipment (PPE) and essential medicines to secure U.S. health and safety and to reflect the additional resource costs incurred when procuring these domestically manufactured items. CMS seeks input on a possible new Secure American Medical Supplies designation that could be earned by hospitals that demonstrate their commitment to domestic procurement. In addition, CMS seeks input on potential ways such a designation could facilitate the creation of new, streamlined payment policies to support hospitals in their efforts. CMS is also seeking input on a potential new structural quality measure as part of the Hospital Inpatient Quality Reporting (IQR) Program that could promote hospital commitments to invest in domestic procurement.
• On January 26, 2026, the Department of Health and Human Services (HHS) released guidance entitled, Nation’s Retail Pharmacies: Obligations under Federal Civil Rights Laws to Ensure Nondiscriminatory Access to Health Care at Pharmacies (issued September 29, 2023). The HHS Office of Civil Rights (OCR) issued this notice to rescind its guidance entitled, Guidance to Nation’s Retail Pharmacies: Obligations under Federal Civil Rights Laws to Ensure Nondiscriminatory Access to Health Care at Pharmacies, issued on September 29, 2023, which revised the Guidance to Nation’s Retail Pharmacies: Obligations under Federal Civil Rights Laws to Ensure Access to Comprehensive Reproductive Health Care Services, originally issued on July 13, 2022. This recission became effective upon publication.
• On January 27, 2026, HHS released a rule entitled, Annual Civil Monetary Penalties Inflation Adjustment. HHS is updating its regulations to reflect required annual inflation-related increases to the civil monetary penalty (CMP) amounts in its statutes and regulations, under the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015.
• On January 27, 2026, the HHS Office of Inspector General (OIG) released a request for information (RFI) entitled, Medicare and State Health Care Programs: Fraud and Abuse; Request for Information Regarding the Federal Anti-Kickback Statute and Beneficiary Inducements CMP. This RFI seeks input from the public on whether any additions or modifications are needed to the safe harbor regulations under the federal anti-kickback statute or the exceptions to the CMP provision prohibiting inducements to beneficiaries for emerging direct-to-consumer (DTC) sales programs established by pharmaceutical manufacturers, including those that will be available through TrumpRx. Comments are due March 30, 2026.
• On January 28, 2026, CMS released a proposed rule entitled, Medicare and Medicaid Programs: Organ Procurement Organizations Conditions for Coverage: Revisions to the Conditions for Coverage. This proposed rule would revise the Conditions for Coverage for Organ Procurement Organizations (OPOs) to clarify outstanding procedural questions and enable OPOs to make better informed decisions to achieve high performance in the procurement, distribution, and transplantation of more life-saving organs. This rule would revise definitions, add new Quality Assessment Performance Improvement (QAPI) requirements related to medically complex organs and donors, revise the designation requirements for OPOs, clarify when an OPO’s service area is open for competition, and update the process for appeals. It also includes a discussion of factors CMS would consider when selecting a successor OPO during a competition under the tiered approach to re-certification. CMS is committed to holding all OPOs accountable for their performance and this proposed rule does not revise the focus on improving the volume of donors and transplants assessed in the outcome measures or the tier structure used for re-certification and de-certification of OPOs.
• On January 28, 2026, Assistant Secretary for Technology Policy/Office of the National Coordinator for Health Information Technology (ASTP/ONC) released an RFI entitled, Diagnostic Imaging Interoperability Standards and Certification. ASTP/ONC seeks input from the public regarding the potential adoption of diagnostic imaging technical standards and certification criteria for health information technology (IT) under the ONC Health IT Certification Program to better enable the access, exchange, and use of diagnostic images by health care providers and patients. Responses to this RFI will be used to inform potential future rulemaking. Comments are due March 16, 2026.
• On January 29, 2026, CMS released a rule entitled, Medicaid Program: Preserving Medicaid Funding for Vulnerable Populations - Closing a Health Care-Related Tax Loophole. This final rule addresses a “loophole” in a regulatory statistical test applied to state proposals for Medicaid tax waivers. The test is designed to ensure, as required by statute, that non-uniform or non-broad-based health care-related taxes, authorized under a waiver, are generally redistributive. The inadvertent “loophole” currently allows some health care-related taxes, especially taxes on managed care organizations (MCOs), to be imposed at higher tax rates on Medicaid taxable units than non-Medicaid taxable units, contrary to statutory and regulatory intent for health care-related taxes to be generally redistributive. The final rule closes the “loophole” by finalizing the policies in the proposed rule to add additional safeguards to ensure that tax waivers that exploit the “loophole” because they pass the current statistical test, but are not generally redistributive, are not approvable. By adding these safeguards, the final rule is also implementing recently added statutory requirements for a tax to be considered generally redistributive.
• On January 30, 2026, HHS released a notice of proposed rulemaking entitled, Nondiscrimination on the Basis of Disability in Programs or Activities Receiving Federal Financial Assistance. The purpose of the notice is to limit ambiguity by clarifying that the statutory exclusion of “gender identity disorders not resulting from physical impairments” from the scope of what constitutes discrimination includes “gender dysphoria not resulting from a physical impairment”.
• On January 30, 2026, the Health Resources and Services Administration (HRSA) released a notice entitled, National Vaccine Injury Compensation Program: List of Petitions Received. HRSA published this notice of petitions received under the National Vaccine Injury Compensation Program, as required by the Public Health Service (PHS) Act. While the Secretary of HHS is named as the respondent in all proceedings brought by the filing of petitions for compensation under the program, the U.S. Court of Federal Claims is charged by statute with responsibility for considering and acting upon the petitions.

Event Notices

Please note that two asterisks (**) preceding the item indicate a new event. 

• February 3, 2026: The National Institutes of Health (NIH) announced a meeting of the National Institute on Drug Abuse. This is a hybrid meeting with some sessions open to the public.
• **February 5, 2026: NIH announced a meeting of the National Advisory Council on Alcohol Abuse and Alcoholism. This is a hybrid meeting with some sessions open to the public.
• February 6, 2026: NIH announced a meeting of the National Advisory Council on Minority Health and Health Disparities. This is a virtual meeting open to the public.
• February 6, 2026: NIH announced a meeting of the National Cancer Advisory Board Ad hoc Working Group on Extramural Research Concepts and Programs. This is a hybrid meeting open to the public.
• February 6, 2026: HHS announced a Tribal consultation on the proposed rule entitled, Modifications to the HIPAA Privacy Rule to Support, and Remove Barriers to, Coordinated Care and Individual Engagement. This is a virtual meeting open to the public.
• February 8-10, 2026: NIH announced a meeting of the National Institute of Environmental Sciences. This is a hybrid meeting with some sessions open to the public.
• February 9, 2026: HHS announced a meeting of the Advisory Council on Alzheimer’s Research, Care, and Services. This is a hybrid meeting open to the public.
• February 9-10, 2026: NIH announced a meeting of the Fogarty International Center Advisory Board. This is a hybrid meeting with some sessions open to the public.
• February 9-10, 2026: NIH announced a meeting of the National Library of Medicine. This is a virtual meeting with some sessions open to the public.
• February 10, 2026: The Food and Drug Administration (FDA) announced a roundtable discussion with small tobacco product manufacturers to solicit input on premarket tobacco product application (PMTA) submissions for electronic nicotine delivery systems (ENDS) products. This is a hybrid meeting open to the public.
• February 11, 2026: NIH announced a meeting of the National Advisory Neurological Disorders and Stroke Council. This is a virtual meeting open to the public.
• February 13, 2026: NIH announced a meeting of the National Advisory Eye Council. This is a virtual meeting open to the public.
• February 19, 2026: The Centers for Disease Control and Prevention (CDC) announced a meeting of the Advisory Board on Radiation and Worker Health (ABRWH). This is a hybrid meeting open to the public.
• February 19, 2026: ASTP announced a meeting of the Health Information Technology Advisory Committee. This is a virtual meeting open to the public.
• February 23-24, 2026: HHS announced a meeting of the Physician-Focused Payment Model Technical Advisory Committee (PTAC). This is a hybrid meeting open to the public.
• **March 6, 2026: NIH announced a meeting of the National Advisory Mental Health Council. This is a virtual meeting with some sessions open to the public.
• March 19, 2026: NIH announced a meeting of the Board of Scientific Counselors of the National Cancer Institute. This is a hybrid meeting with some sessions open to the public.
• March 16, 2026: NIH announced a meeting of the National Cancer Advisory Board. This is a hybrid meeting with some sessions open to the public.
• March 18, 2026: NIH announced a meeting of the National Institute of Environmental Health Sciences. This is a hybrid meeting with some sessions open to the public.
• March 18, 2026: NIH announced a meeting of the National Advisory Mental Health Council. This is a virtual meeting open to the public.
• March 18, 2026: NIH announced a meeting of the National Cancer Institute Clinical Trials and Translational Research Advisory Committee. This is a hybrid meeting open to the public.
• **March 25, 2026: NIH announced a meeting of the National Heart, Lung, and Blood Advisory Council. This is a hybrid meeting with some sessions open to the public.
• March 30-31, 2026: NIH announced a meeting of the National Institute of Diabetes and Digestive and Kidney Diseases. This is a hybrid meeting with some sessions open to the public.
• March 30-31, 2026: NIH announced a meeting of the National Institute on Aging. This is a hybrid meeting with some sessions open to the public.
• April 6, 2026: NIH announced a meeting of the National Advisory Allergy and Infectious Diseases Council. This is a virtual meeting with some sessions open to the public.
• April 7, 2026: NIH announced a meeting of the Advisory Committee on Research on Women’s Health. This is a hybrid meeting open to the public.
• **April 9-10, 2026: NIH announced a meeting of the Sleep Disorders Research Advisory Board. This is a hybrid meeting open to the public.
• April 17, 2026: NIH announced a meeting of the National Center for Complementary & Integrative Health. This is a hybrid meeting with some sessions open to the public.
• April 23, 2026: NIH announced a meeting of the National Library of Medicine Board of Scientific Counselors. This is a hybrid meeting with some sessions open to the public.
• **May 4-5, 2026: NIH announced a meeting of the Eunice Kennedy Shriver National Institute of Child Health & Human Development. This is a hybrid meeting open to the public.
• May 5, 2026: NIH announced a meeting of the National Advisory Council on Alcohol Abuse and Alcoholism. This is a hybrid meeting with some sessions open to the public.
• May 7, 2026: ASTP announced a meeting of the Health Information Technology Advisory Committee. This is a hybrid meeting open to the public.
• **May 12, 2026: NIH announced a meeting of the Board of Regents of the National Library of Medicine. This is a virtual meeting with some sessions open to the public.
• May 13, 2026: NIH announced a meeting of the National Institute on Aging. This is an in-person meeting with some sessions open to the public.
• May 13, 2026: NIH announced a meeting of the National Diabetes and Digestive and Kidney Diseases Advisory Council. This is a hybrid meeting with some sessions open to the public.
• **March 11-13, 2026: HHS announced the 2026 National Conference on Women’s Health. This conference is free and open to the public.
• **May 19, 2026: NIH announced a meeting of the National Advisory Council for Nursing Research. This is a hybrid meeting open to the public.
• June 1-2, 2026: NIH announced a meeting of the Fogarty International Center Advisory Board. This is a hybrid meeting with some sessions open to the public.
• **June 2, 2026: NIH announced a meeting of the National Arthritis and Musculoskeletal and Skin Diseases Advisory Council. This is a hybrid meeting with some sessions open to the public.
• June 5, 2026: NIH announced a meeting of the Eunice Kennedy Shriver National Institute of Child Health & Human Development. This is a hybrid meeting with some sessions open to the public.
• June 15-16, 2026: HHS announced a meeting of PTAC. This is a hybrid meeting open to the public.
• **June 29, 2026: NIH announced a meeting of the National Cancer Advisory Board. This is a hybrid meeting with some sessions open to the public.
• September 10-11, 2026: NIH announced a meeting of the Fogarty International Center Advisory Board. This is a hybrid meeting with some sessions open to the public.
• September 14-15, 2026: HHS announced a meeting of PTAC. This is a hybrid meeting open to the public.
• September 15-16, 2026: NIH announced a meeting of the National Advisory Council on Aging. This is a hybrid meeting with some sessions open to the public.
• September 24, 2026: ASTP announced a meeting of the Health Information Technology Advisory Committee. This is a virtual meeting open to the public.
• November 5, 2026: ASTP announced a meeting of the Health Information Technology Advisory Committee. This is a virtual meeting open to the public.
• December 8-9, 2026: HHS announced a meeting of PTAC. This is a hybrid meeting open to the public.

Reports, Studies & Analyses

• On January 28, 2026, OIG released a report entitled, Audit of Medicare Administrative Contractor Information Security Program Evaluations for Fiscal Year 2024. The Social Security Act (SSA) requires each Medicare Administrative Contractor (MAC) to have its information security program evaluated annually by an independent entity. CMS contracted with an Independent Public Accountant (IPA) to evaluate information security programs at the MACs using a set of agreed-upon procedures. OIG is required to submit an annual report to Congress on the results of these evaluations and include an assessment of their scope and sufficiency. OIG found that the IPA’s evaluations of the MAC information security programs were adequate in scope and sufficiency in FY 2024. Additionally, the FY 2024 evaluations identified deficiencies in seven of the nine Federal Information Security Modernization Act of 2014 control areas, resulting in a total of 97 gaps across the seven MACs. OIG added that in FY 2024, the number of high-risk and moderate-risk gaps decreased, while the number of low-risk gaps increased. While one moderate-risk gap was recurring from FY 2023, other gaps were similar to those identified in FY 2023 but were not identified by the IPA as recurring. OIG stated that the results support the need for CMS to continue its oversight of the MACs, including site visits to address gaps and improve information technology security.
• On January 28, 2026, the Congressional Research Service (CRS) released a report entitled, “Skinny Labels” for Generic Drugs Under Hatch-Waxman. CRS explains how FDA’s drug approval framework and the Hatch‑Waxman Act affect the use of “skinny labels” for generic drugs. CRS reported that new drugs require full FDA approval through new drug applications (NDAs) with clinical trial data and FDA‑approved labeling, while generic drugs may rely on abbreviated new drug applications (ANDAs) that demonstrate equivalence without duplicating safety and efficacy trials, though generic labels must generally mirror the brand drug’s labeling. CRS explained that brand‑name manufacturers submit patent information—particularly method‑of‑use patents and related “use codes”—for publication in the FDA’s Orange Book, and that overly broad use codes can impede a generic manufacturer’s ability to carve out patented indications. CRS noted that generic manufacturers have limited tools to challenge inaccurate use codes, relying primarily on a narrow statutory counterclaim upheld by the Supreme Court in Caraco v. Novo Nordisk. CRS also described judicial decisions, including GSK v. Teva and Amarin v. Hikma, that have heightened concerns about induced patent infringement liability for skinny‑label generics, prompting the Supreme Court to take up Hikma v. Amarin in its 2025 term. Finally, CRS identified potential considerations for Congress, including whether FDA should have a greater role in monitoring Orange Book patent information and whether Congress should clarify when generic manufacturers using skinny labels may be held liable for indirect patent infringement.

Hearings & Markups

• On January 28, 2026, the Senate Committee on Veterans’ Affairs held a hearing entitled, Building a 21st Century VA Health Care System: Assessing Efforts to Restructure the Veterans Health Administration. Witnesses included: The Honorable Douglas A. Collins, Secretary of Veterans Affairs, U.S. Department of Veterans Affairs (VA); The Honorable John Bartrum, Under Secretary for Health, VA; Mr. Mark Engelbaum, Assistant Secretary for Human Resources and Administration, VA; and Mr. Gregory Goins, Acting Chief Operating Officer, Veterans Health Administration, VA.
• On January 29, 2026, the Senate Special Committee on Aging held a hearing entitled, Truth in Labeling: Americans Deserve to Know Where Their Drugs Come From. Witnesses included: Dr. John Gray, Ph.D., Dean’s Distinguished Professor of Operations, Fisher College of Business, The Ohio State University; Mr. Michael Ganio, Pharm.D., Senior Director, Pharmacy Practice and Quality, American Society of Health-System Pharmacists; Dr. Stephen W. Schondelmeyer, Pharm.D., Ph.D., Professor of Pharmaceutical Management & Economics, College of Pharmacy, University of Minnesota; and Mr. Stephen Colvill, Assistant Research Director, Duke-Margolis Institute for Health Policy.

Other Health Policy News

• On January 26, 2026, CMS released the Advance Notice of Methodological Changes for Calendar Year (CY) 2027 for Medicare Advantage (MA) Capitation Rates and Part C and Part D Payment Policies (Advance Notice). CMS expects an average increase in revenue of 0.09 percent (over $700 million) based on policies included in the 2027 Advance Notice and broader trends. This number reflects zero percent change in coding pattern adjustment, as CMS will continue to apply the statutory minimum MA coding pattern adjustment of 5.90 percent for 2026. This expectation also includes a MA “risk score trend” of 2.54 percent. Of note, CMS is proposing that diagnoses from audio-only services and diagnoses from unlinked chart review records (CRRs) are excluded from the calculation of risk scores for MA beneficiaries, including those in End Stage Renal Disease (ESRD) status.
  
  The CY 2027 Advance Notice is available here. The press release is available here. The fact sheet is available here.
• On January 26, 2026, the American Hospital Association (AHA) sent a letter to HRSA urging it to prevent a new 340B Drug Pricing Program (340B) reporting policy from Eli Lilly & Co. from taking effect on February 1, 2026. The policy would require claims level data for all dispensations of Lilly drugs, including in-house pharmacy drugs, drugs administered directly to patients, and data from both pharmacy and medical claims. The letter notes that this policy drastically expands the reporting burden on 340B hospitals, particularly as it relates to medical claims, which may be impossible to actually submit through the 340B Enhanced Savings Program (ESP) platform. It also notes that Lilly already has one of the most onerous reporting systems of all manufacturers, and asks that HRSA implement civil monetary penalties (CMPs) against the manufacturer for its intentional overcharging of 340B hospitals.
  
  The full letter can be found here.
• On January 27, 2026, CMS announced the selection of 15 drugs for the third round of Medicare drug price negotiations. These negotiations are for prices that would go into effect in 2028, and, for the first time, include a drug’s Part B spending as part of the selection criteria. The selected drugs are:
  • Anoro Ellipta
  • Biktarvy
  • Botox; Botox Cosmetic
  • Cimzia
  • Cosentyx
  • Entyvio
  • Erleada
  • Kisqali
  • Lenvima
  • Orencia
  • Rexulti
  • Tradjenta
  • Trulicity
  • Verzenio
  • Xeljanz; Xeljanz XR
  • Xolair

  A press release from CMS on the selection can be found here.

• On January 29, 2026, eight Republicans joined all Senate Democrats in a 45-55 vote (with 60 votes needed) against advancing a six‑bill funding package that covers, among other agencies, the Departments of Homeland Security (DHS), State, and HHS. Together, these bills represent more than 75 percent of all discretionary federal spending. The House had already passed the package and left town for recess, expecting the Senate to clear the bills with minimal debate. However, the recent events in Minnesota intensified scrutiny of the Administration’s immigration enforcement activities. In response, Senate Democrats declared that they would oppose advancing the package as long as it includes DHS funding—unless Republicans agree to legislation imposing new guardrails on Immigration and Customs Enforcement (ICE).
  
  As of January 30, 2026, the Senate is moving to proceed on eight roll call votes on a five-bill minibus with a two-week continuing resolution (CR) for DHS. There is expected to be several amendments offered and voted on followed by a vote on the final passage. The package will then move to the House for consideration and is expected to be voted on early next week. A government shutdown is expected to begin Saturday morning and will last until the package is signed into law. Of note, on the night of January 29, Senator Lindsey Graham (R-SC) objected to a list of amendments over the DHS CR containing language to repeal a provision allowing Senators to sue the federal government if their phone records were seized without notice.
  
  As a reminder, the House-passed bill allocates a total of $116 billion of discretionary spending for HHS. Of note, the bill includes $8.9 billion for HRSA, $9.2 billion for CDC, $48.7 billion for NIH, and $4.1 billion for CMS. The bill largely avoids the deeper cuts the House Appropriations Committee were seeking, as well as those outlined in the President’s Budget.
  
  Also riding on the success of the appropriations package is the group of pharmacy benefit manager (PBM) reforms and health program extensions, including Medicare telehealth flexibilities, the Acute Hospital Care at Home program, the low-volume hospital increased payment adjustment and Medicare Dependent Hospital program, and a delay in cuts to the clinical lab fee schedule.
  
  The full bill text and summaries can be found here.
• On January 29, 2026, President Trump signed an executive order (EO) establishing the White House Great American Recovery Initiative to coordinate the federal response to substance use disorder (SUD). The EO directs the Initiative, led by the Secretary of HHS and the Senior Advisor for Addiction Recovery, to align federal programs, set clear objectives, and provide updates to the public on progress towards meeting set objectives. It also directs the Initiative to increase awareness of SUD, help Americans access treatment, and foster a culture that celebrates recovery. Additionally, the Initiative is to advise agencies on integrating prevention, early intervention, treatment, recovery support, and re‑entry; guide the use of grant funding to support prevention, treatment, and long‑term recovery; and consult with states, tribal nations, local governments, community‑ and faith‑based organizations, the private sector, and philanthropic entities to expand access to treatment.
  
  The EO can be found here.
• On January 29, 2026, CMS released a final rule entitled, Preserving Medicaid Funding for Vulnerable Populations - Closing a Health Care-Related Tax Loophole. Effective April 3, 2026, the rule tightens the circumstances in which states may use non‑uniform or non‑broad‑based provider taxes to finance Medicaid through waiver approvals. Under the final rule, even if a tax passes the existing statistical tests, CMS will treat it as not “generally redistributive” if it taxes Medicaid units more heavily than non‑Medicaid units, uses tiers that increase rates with Medicaid utilization, or uses proxy descriptions that have the same effect.
  
  CMS also states that the rule implements new statutory requirements enacted in the One Big Beautiful Bill Act (OBBBA), which largely mirror the provisions included in the proposal. Although the rule primarily addresses provider taxes imposed on MCOs, CMS indicates that comparable tax arrangements are present in other permissible provider classes, including inpatient hospital services and nursing facility services, and that the final rule applies on a per‑permissible‑class basis.
  
  Moreover, CMS established transition periods, most notably requiring many affected MCO tax waivers to be compliant by January 1, 2027, and non MCO “loophole” taxes by the end of state FY 2028 (no later than September 30, 2028).
  
  The final rule can be found here. A press release can be found here.
• On January 29, 2026, Senator Bernie Moreno (R-OH) made his final pitch to Senate Democrats on a plan to revive the expired enhanced premium tax credits (EPTCs) for Affordable Care Act (ACA) Marketplace plans. Senator Moreno and Senate Appropriations Chair Susan Collins (R-ME) had been working across the aisle to strike a deal to extend and modify EPTCs. Senator Moreno is pitching a one-year extension of the EPTCs that expired at the end of last year. His proposal moves the expiration of EPTCs from January 1, 2026, to January 1, 2027, and allows EPTCs (for those enrolled in eligible enrollees in bronze plans) to now be paid into new Exchange Plan Health Savings Accounts (HSAs) for 2027 and 2028. The bill would also bar “individuals not lawfully present” in the U.S. from receiving benefits under the bill. The proposal also includes a minimum $5 monthly or $60 annual out-of-pocket payment on subsidized plans; extends open enrollment until March 31; imposes CMPs on brokers and agents who knowingly commit fraud; requires audits of issuer compliance with the Hyde Amendment barring taxpayer funding on abortions; includes funding cost-sharing reduction payments for 2027 and 2028; and caps the subsidies for individuals at 700 percent of the federal poverty level (FPL).
  
  The full text of Senator Moreno’s legislative proposal can be found here.
• On January 29, 2026, the Department of Education (ED) released a proposed rule entitled, Reimagining and Improving Student Education. The proposed rule would implement changes to federal student loan programs as enacted in the OBBBA, including establishing new loan limits for graduate students, professional students, and parents, and phasing out the Graduate PLUS Program. Specifically, the proposed rule interprets “professional student” to mean a student enrolled in a program of study that awards a professional degree in the following fields: Pharmacy, Dentistry, Veterinary Medicine, Chiropractic, Law, Medicine, Optometry, Osteopathic Medicine, Podiatry, Theology, and Clinical Psychology. In the proposed rule, ED noted that the following degree programs did not meet the “professional degree” definition: Business, Education, Occupational Therapy, Naturopathic Medicine, Nursing, Physical Therapy, Physician Assistant, Public Health, and Social Work, among others.
  
  Beginning with periods of enrollment on or after July 1, 2026, the proposed rule would limit borrowing under the Direct Unsubsidized Loan Program to $20,500 per academic year for graduate students who are not enrolled in professional degree programs, with an aggregate cap of $100,000. Professional degree students would be permitted to borrow up to $50,000 per academic year, subject to a $200,000 aggregate limit. Certain borrowers would be exempt from these new limits if they are grandfathered into prior loan limits.
  
  Comments on this proposed rule are due by March 2, 2026.
  
  The proposed rule can be found here. A press release can be found here.

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