Health Care Week in Review | House Appropriations Committee Favorably Reports FY2027 Labor-HHS Bill; CMS Issues Budget Neutrality Guidance on Medicaid Section 1115 Demonstrations

 Regulations, Notices & Guidance

• On June 8, 2026, the Department of Health and Human Services (HHS) released a notice entitled, HHS Request for Comment on Chronic Disease of Addiction. HHS invites public comment in response to this Request for Information (RFI) on the research, development, programs, and policies that have been most successful in improving availability of and access to effective prevention, treatment, and recovery interventions for addiction, mental illness, and co-occurring substance use and mental disorders. The purpose of this RFI is to identify research, programs, and policies that have been successful and recommend novel policy ideas and gaps in research that could be addressed and implemented to further the Great American Recovery Initiative using existing funding.
• On June 8, 2026, HHS released a final rule entitled, Reducing Bureaucracy and Burden for Community Services Programs. This final rule amends the Block Grants regulations, the Individual Development Account Reserve Funds Established Pursuant to Grants for Assets for Independence regulations, and the Emergency Community Services Homeless Grant Program regulations. This final rule rescinds multiple regulations that are either unnecessary or wholly obsolete. The regulations contained in this final rule to be rescinded and reserved can be categorized into three groups: those that are duplicative, those that are better suited as a different type of sub-regulatory format, and those that are obsolete.
• On June 8, 2026, the Office of Child Support Enforcement (OCSE), the Administration for Children and Families (ACF), and HHS released a notice of proposed rulemaking entitled, Employment and Training Services for Noncustodial Parents in the Child Support Program; Rescission. OCSE proposes to rescind the Employment and Training Services for Noncustodial Parents in the Child Support Program final rule, published in the Federal Register on December 13, 2024, which allowed child support agencies to utilize Federal Financial Participation under title IV-D of the Social Security Act for providing specific, optional, and non-duplicative employment and training services to eligible noncustodial parents.
• On June 9, 2026, the Centers for Medicare & Medicaid Services (CMS) released a notice entitled, Announcement of the Approval of COLA as an Accreditation Organization for the Specialty of Histocompatibility Under the Clinical Laboratory Improvement Amendments of 1988. This notice announces the application of the Commission on Laboratory Accreditation (COLA) for approval as an accreditation organization for clinical laboratories under the Clinical Laboratory Improvement Amendments of 1988 (CLIA) program for the specialty of Histocompatibility. CMS has determined that COLA meets or exceeds the applicable CLIA requirements. Consequently, CMS is granting COLA deeming authority for the specialty of Histocompatibility for a period of 5 years.
• On June 9, 2026, the Food and Drug Administration (FDA) released a final rule entitled, Medical Devices; Ear, Nose, and Throat Devices; Classification of the Combined Acoustic and Electrical External Stimulation Device For the Relief of Tinnitus. FDA is classifying the combined acoustic and electrical external stimulation device for the relief of tinnitus into class II (special controls). The special controls that apply to the device type are identified in this final rule and will be part of the codified language for classification of the combined acoustic and electrical external stimulation device for the relief of tinnitus. FDA is taking this action because the agency has determined that classifying the device into class II will provide a reasonable assurance of safety and effectiveness of the device. FDA believes this action will also enhance patients’ access to beneficial innovative devices, in part by reducing regulatory burdens.
• On June 9, 2026, FDA released a notice entitled, Amending Over-the-Counter Monograph M020: Sunscreen Drug Products for Over-the-Counter Human Use, and Related Information. In response to an over-the-counter (OTC) monograph order request (OMOR), FDA is announcing the availability on its website of the final administrative order (final order) (OTC000039) titled “Amending Over-the-Counter Monograph M020: Sunscreen Drug Products for Over-the-Counter Human Use, and Related Information.” This final order amends “Over-the-Counter Monograph M020: Sunscreen Drug Products for Over-the-Counter Human Use” (OTC Monograph M020) to add bemotrizinol at concentrations up to 6 percent as a sunscreen active ingredient. A sunscreen drug product containing bemotrizinol is generally recognized as safe and effective (GRASE) if it meets the conditions described in OTC Monograph M020 as amended by this final order.
• On June 10, 2026, HHS released a notice entitled, Requests for Nominations: Membership on the Presidential Advisory Council on HIV/AIDS. The Office of the Assistant Secretary for Health (OASH) is seeking nominations for membership on the Presidential Advisory Council on HIV/AIDS (PACHA), a federal advisory committee within HHS. Management support for the activities of PACHA is the responsibility of OASH. The qualified individuals will be nominated by the Secretary of HHS for appointment to PACHA. Members of PACHA, including the Chair, are appointed by the HHS Secretary. Members are invited to serve for overlapping terms of up to four years. PACHA was established to provide advice, information, and recommendations to the HHS Secretary regarding programs, policies, and research to promote effective treatment, prevention and cure of HIV and AIDS, including considering common co-morbidities, as needed to promote effective HIV diagnosis, treatment, prevention, and quality care services. The functions of PACHA are solely advisory in nature.
• On June 10, 2026, CMS released a notice entitled, Statement of Organization, Functions, and Delegations of Authority. The notice announces the establishment of the CMS Office of Health Technology and Products (OHTP). This new organizational component will provide enterprise leadership and oversight for CMS healthcare technology modernization, digital products, and transformation of platforms and services supporting Medicare, Medicaid, the Children’s Health Insurance Program (CHIP), and other CMS-administered programs, in close coordination with the CMS Chief Information Officer (CIO) and subject to CIO-led enterprise information technology (IT) governance, cybersecurity, enterprise architecture, and capital planning and investment control responsibilities, as well as CIO-led digital service delivery, customer experience, and public digital experience responsibilities under applicable law.
• On June 10, 2026, FDA released a final rule entitled, Immunology and Microbiology Devices; Classification of the Simple Point-of-Care Device to Directly Detect SARS-CoV-2 Viral Targets From Clinical Specimens in Near-Patient Settings. FDA is classifying the simple point-of-care device to directly detect SARS-CoV-2 viral targets from clinical specimens in near-patient settings into class II (special controls). The special controls that apply to the device type are identified in this final rule and will be part of the codified language for classification of the simple point-of-care device to directly detect SARS-CoV-2 viral targets from clinical specimens in near-patient settings. FDA is taking this action because the agency has determined that classifying the device into class II will provide a reasonable assurance of safety and effectiveness of the device. FDA believes this action will also enhance patients’ access to beneficial innovative devices, in part by reducing regulatory burdens.
• On June 10, 2026, FDA released a final rule entitled, Immunology and Microbiology Devices; Classification of the Spinal Muscular Atrophy Newborn Screening Test System. FDA is classifying the Spinal Muscular Atrophy newborn screening test system into class II (special controls). The special controls that apply to the device type are identified in this final rule and will be part of the codified language for classification of the Spinal Muscular Atrophy newborn screening test system. FDA is taking this action because the agency has determined that classifying the device into class II will provide a reasonable assurance of safety and effectiveness of the device. FDA believes this action will also enhance patients’ access to beneficial innovative devices, in part by reducing regulatory burdens.
• On June 10, 2026, FDA released a notice entitled, Recommendations on Scale-Up and Postapproval Changes Guidances for Industry; Request for Comments; Reopening of the Comment Period. FDA is reopening the comment period for the request for information and comments that appeared in the Federal Register of March 3, 2026. In the notice, FDA requested comments on the agency’s series of guidances for industry on scale-up and postapproval changes for specific dosage forms. FDA is taking this action to allow interested persons additional time to submit comments.
• On June 10, 2026, FDA released a notice entitled, Drug Repurposing for Unmet Medical Needs; Request for Information; Extension of Comment Period. FDA is extending the comment period for the notice entitled, Drug Repurposing for Unmet Medical Needs; Request for Information that appeared in the Federal Register on May 12, 2026 (91 Fed. Reg. 25897). In the notice, FDA requested comments to solicit input on FDA’s efforts with respect to drug repurposing to address unmet medical needs. FDA is taking this action to allow interested persons additional time to submit comments.
• On June 12, 2026, FDA released a final rule entitled, Amendment and Revocation of Organizational Information Regulations. FDA is amending its regulations to direct the public to organizational and contact information available on the agency’s website. FDA is also revoking certain regulations that are no longer necessary in light of this amendment. These changes are appropriate to provide the public with a uniform source of agency organizational and contact information that can be readily updated as needed in the future.
• On June 12, 2026, FDA released a notice of availability entitled, Forms FDA 3542a and FDA 3542: Questions and Answers; Draft Guidance for Industry; Availability. This draft guidance is intended to answer commonly asked questions regarding Forms FDA 3542a and FDA 3542, and to assist applicants in preparing and submitting these forms to FDA.
• On June 12, 2026, the Health Resources and Services Administration (HRSA) released a notice entitled, National Vaccine Injury Compensation Program; List of Petitions Received. HRSA is publishing this notice of petitions received under the National Vaccine Injury Compensation Program (the Program), as required by the Public Health Service Act (PHS), as amended. 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.
• On June 12, 2026, the National Institutes of Health (NIH) released a notice entitled, Government Owned Inventions Available for License: 4-Amino-2-(piperidin-3- yl)isoindoline-1,3-diones as Anti-inflammatory Agents for Systemic Degenerative and Neurodegenerative Disorders. This notice announces that the National Institute on Aging (NIA) seeks research co-development partners and/or licensees for the pre-clinical and clinical development of the compounds as anti-inflammatory therapeutics for systemic degenerative and neurodegenerative disorders.
• On June 12, 2026, NIH released a notice entitled, Government Owned Inventions Available for License: Fluorophthalimides as Anti-inflammatory Agents for Systemic and Neurodegenerative Disorders. This notice announces that NIA seeks research co-development partners and/or licensees for the pre-clinical and clinical development of the compounds as anti-inflammatory therapeutics for systemic and neurodegenerative disorders.
• On June 12, 2026, CMS released a final rule entitled, Strengthening Oversight of Accrediting Organizations and Preventing AO Conflicts of Interest, and Related Provisions. This final rule sets forth provisions to strengthen the oversight of Medicare national accrediting organizations by addressing conflicts of interest, establishing consistent standards, processes, and definitions, and updating the validation and performance standards systems. Additionally, this final rule with comment period revises the psychiatric hospital survey process, adds a limitation on terminated deemed providers and suppliers when reentering the program, and provides technical corrections for End-Stage Renal Disease facilities and Transplant Programs.
• On June 12, 2026, CMS released a proposed rule entitled, Medicare Drug Price Negotiation Program and Medicare Prescription Drug Benefit Program. This proposed rule would codify the Medicare Drug Price Negotiation Program (“Negotiation Program”) in regulations and would establish certain new policies for the Negotiation Program and the Medicare Prescription Drug Benefit Program as required by the Inflation Reduction Act of 2022. This proposed rule would also propose a modification to the fixed combination drug policy.
• On June 12, 2026, HHS released a request for information (RFI) entitled, Request for Information: Comprehensive Review of the Essential Health Benefits Framework and Typical Employer Plan Standard. This RFI seeks public input to support CMS’s comprehensive review of the Essential Health Benefits (EHB) framework and the requirement under the Patient Protection and Affordable Care Act (Affordable Care Act) that the scope of EHB be equal to the scope of benefits provided under a typical employer plan. CMS seeks comment on current interpretations of EHB, State approaches to selecting and updating EHB-benchmark plans, and methodologies used to determine the scope of benefits included as EHB, as well as how these approaches relate to access and market stability under the Affordable Care Act. CMS also seeks comment on variation across States in the scope of benefits included as EHB, cost pressures affecting EHB, processes for updating State EHB-benchmark plans, limitations in available data used to evaluate EHB, and potential impacts of possible future policy changes. The information gathered will inform CMS’s evaluation of whether revisions or additions to the current EHB regulations through future notice and comment rulemaking may be appropriate.

Event Notices

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

• June 15, 2026: NIH announced a meeting of the National Institute of Environmental Health Sciences (NIEHS) Board of Scientific Counselors. This is a hybrid meeting with some sessions open to the public.
• June 15, 2026: FDA announced a meeting entitled, Challenges and Solutions in Lot-Level Food Traceability. This is a virtual meeting open to the public.
• June 15-16, 2026: HHS announced a meeting of the Physician-Focused Payment Model Technical Advisory Committee (PTAC). This is a hybrid meeting open to the public.
• June 15-16, 2026: NIH announced a meeting of the National Institute of Biomedical Imaging and Bioengineering Board of Scientific Counselors. This is an in-person meeting with some sessions open to the public.
• June 16, 2026: NIH announced a meeting of the Interagency Pain Research Coordinating Committee. This is a virtual meeting open to the public.
• June 18, 2026: CMS announced a meeting of the Advisory Board on Radiation and Worker Health (ABRWH). This is a virtual meeting open to the public.
• June 18, 2026: FDA announced a meeting of the Vaccines and Related Biological Products Advisory Committee. This is a virtual meeting open to the public.
• June 22, 2026: NIH announced a meeting of the National Institute of Allergy and Infectious Diseases (NIAID). This is a virtual meeting with some sessions open to the public.
• June 22, 2026: NIH announced a meeting of the National Institute of Mental Health. This is a virtual meeting with some sessions open to the public.
• June 23, 2026: FDA announced a meeting entitled, Financial Transparency and Efficiency of the Prescription Drug User Fee Act, Biosimilar User Fee Act, and Generic Drug User Fee Amendments. This is a hybrid meeting open to the public.
• June 24, 2026: NIH announced a meeting of the Diabetes Mellitus Interagency Coordinating Committee (DMICC). This is a virtual meeting open to the public.
• June 24, 2026: NIH announced a meeting of the NIEHS. This is a virtual meeting with some sessions open to the public.
• June 25, 2026: NIH announced a meeting of the Office of AIDS Research Advisory Council. 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.
• June 29, 2026: NIH announced a meeting of the National Advisory Council for Complementary and Integrative Health. This is a virtual meeting with some sessions open to the public.
• June 29, 2026: NIH announced a meeting of the Advisory Council on Parkinson's Research, Care, and Services (ACPRCS). This is a virtual meeting open to the public.
• June 30, 2026: NIH announced a meeting of the National Institute of Neurological Disorders and Stroke. This is a hybrid meeting with some sessions open to the public.
• July 1, 2026: NIH announced a meeting of the National Institute of Diabetes and Digestive and Kidney Diseases. This is a virtual meeting with some sessions open to the public.
• July 6-7, 2026: NIH announced a meeting of the National Cancer Institute (NCI). This is a virtual meeting with some sessions open to the public.
• July 7, 2026: FDA announced an educational conference entitled, Third Annual Animal Drug User Fee Educational Conference. This is a hybrid event open to the public.
• July 8, 2026: NIH announced a meeting of the National Advisory Child Health and Human Development Council. This is a hybrid meeting with some sessions open to the public.
• July 14-15, 2026: CMS announced a meeting of the Medicare Advisory Panel on Clinical Diagnostic Laboratory Tests. This is a hybrid meeting open to the public.
• July 15, 2026: NIH announced a meeting of the NCI Clinical Trials and Translational Research Advisory Committee. This is a virtual meeting open to the public.
• July 16, 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.
• July 23-24, 2026: FDA announced a meeting of the Pharmacy Compounding Advisory Committee. This is a hybrid meeting open to the public.
• August 6, 2026: NIH announced a meeting of the National Heart, Lung, and Blood Institute. This is a hybrid meeting open to the public.
• August 25, 2026: FDA announced a meeting entitled, Patient-Focused Drug Development for Nonhealing Chronic Wounds. This is a hybrid meeting open to the public.
• **September 2, 2026: NIH announced a meeting of the NCI. This is a virtual 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 16, 2026: NIH announced a meeting of the National Institute of Biomedical Imaging and Bioengineering. This is an in-person meeting with some sessions open to the public.
• September 15-16, 2026: CMS announced a meeting of the Medicare Advisory Panel on Clinical Diagnostic Laboratory Tests. This is a virtual 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: The Office of the National Coordinator for Health IT (ONC) announced a meeting of the Health Information Technology Advisory Committee. This is a virtual meeting open to the public.
• October 14, 2026: NIH announced a meeting of the Eunice Kennedy Shriver National Institute of Child Health & Human Development (NICHD) National Advisory Child Health and Human Development Council. This is an in-person meeting with some sessions open to the public.
• October 16, 2026: NIH announced a meeting of the NIH Clinical Center Research Hospital Board. This is a hybrid meeting open to the public.
• November 5, 2026: ONC announced a meeting of the Health Information Technology Advisory Committee. This is a virtual meeting open to the public.
• **December 1, 2026: NIH announced a meeting of the NCI. This is an in-person meeting with some sessions open to the public.
• December 7-8, 2026: NIH announced a meeting of NICHD. This is a hybrid meeting open to the public.
• December 8-9, 2026: HHS announced a meeting of PTAC. This is a hybrid meeting open to the public.
• January 16, 2027: HHS announced a meeting of the Presidential Advisory Council on Combating Antibiotic-Resistant Bacteria. This is a virtual meeting open to the public.

Reports, Studies & Analyses

• On June 10, 2026, the Government Accountability Office (GAO) released a report entitled, Priority Open Recommendations: Department of Health and Human Services. The report was enclosed in a letter from Orice Williams Brown, the Acting Comptroller General of the U.S., to HHS Secretary Robert F. Kennedy, sent on June 3, 2026. The letter follows a January 29, 2026 report which listed HHS’s recommendation implementation rate at around 70 percent compared to the government-wide 77 percent implementation rate. In this report, GAO highlights two priority recommendation areas for implementation: “Strengthen Medicare and Medicaid program integrity and oversight” and “Improve public health program oversight and coordination”. These two recommendations were included in GAO’s High Risk List, published at the start of each Congress to note programs and operations with serious vulnerabilities to waste, fraud, abuse, or mismanagement, or in need of transformation.
• On June 11, 2026, the HHS Office of Inspector General (OIG) released a report entitled, Medicare Advantage Organizations Overturned Nearly All Appealed Prior Authorization Denials for Skilled Nursing Facility Admission, Raising Concerns About Initial Denials. OIG identified denials of prior authorization requests for post-acute care after a hospital stay as a particular area of concern. In the report, OIG highlights new analyses of denial and overturn rates of requests for admission to skilled nursing facilities (SNFs), which provide short-term skilled nursing and/or therapy services to help patients recovering from an illness, injury, or surgery. OIG found that in June 2024, the 19 Medicare Advantage organizations (MAOs) in this review collectively denied 12 percent of requests for SNF admission, with denial rates ranging from 23 percent to 0.4 percent. Further, OIG states that MAOs and their contractors denied requests for SNF-level care from nursing home residents 40 percent of the time, much higher than the 11 percent denial rate for requests from all other enrollees. OIG recommends that CMS should regularly collect request-level prior authorization data that include service type and contractor information, assess reasons for variation in SNF denial rates across MAOs and contractors, assess reasons for the differences in SNF denial rates between nursing homes and non-nursing home residents, and act as warranted.
• On June 11, 2026, HHS OIG released a report entitled, The Three Largest Medicare Advantage Organizations Denied Requests for Long-Term Acute Care and Inpatient Rehabilitation at Some of the Highest Rates. OIG identified denials of prior authorization requests for post-acute care after a hospital stay as a particular area of concern. In the report, OIG highlights variation in denial and overturn rates of requests for admission to long-term care hospitals (LTCHs) and inpatient rehabilitation facilities (IRFs), which provide therapeutic and rehabilitative care to patients after an illness or injury. OIG found that, among the 19 MAOs in this review, the three largest MAOs by enrollment denied prior authorization requests for care in LTCHs and IRFs at higher rates than most of their peers in June 2024. Further, OIG found that when enrollees appealed, MAOs collectively overturned 36 percent of LTCH denials and 43 percent of IRF denials, indicating that some enrollees were initially denied medically necessary care. OIG recommends that CMS should regularly collect request-level prior authorization data that include service type and contractor information, assess reasons for the wide variation in LTCH and IRF denial and overturn rates across MAOs and contractors, and take action as appropriate.

Hearings & Markups

• On June 9, 2026, the House Committee on Appropriations held a markup of the Fiscal Year (FY) 2027 Labor-HHS and Homeland Security bills. The FY 2027 Labor HHS bill text is available here.
• On June 10, 2026, the House Ways and Means Subcommittees on Social Security and Work & Welfare held a hearing entitled, Joint Social Security and Work & Welfare Subcommittee Hearing with the Commissioner of Social Security, Frank J. Bisignano. Witnesses present included: Mr. Frank J. Bisignano, Commissioner of Social Security.
• On June 10, 2026, the House Energy and Commerce Health Subcommittee held a hearing entitled, Lowering Health Care Costs for All Americans: Examining Policies to Increase Health Care Transparency. Witnesses present included: Ms. Carol Skenes, Chief of Staff, Turquoise Health; Mr. Shawn Gremminger, President and Chief Executive Officer, National Alliance of Healthcare Purchaser Coalitions; Dr. Benedic Ippolito, Ph.D., Senior Fellow, American Enterprise Institute; Dr. Christopher Whaley, Ph.D., Associate Director of the Center for Advancing Health Policy through Research (CAHPR) and Associate Professor of Health Services, Policy and Practice, Brown University School of Public Health; Ms. Sophia Tripoli, MPH, Senior Director of Health Policy, Families USA. Legislation considered included:
  • H.R. ____, the Lower Costs, More Transparency Act of 2026;
  • H.R. ____, To amend title XXVII of the Public Health Service Act to require hospitals to post prices on the walls;
  • H.R. ____, To amend title XXVII of the Public Health Service Act and title XVIII of the Social Security Act to ensure health insurer accountability through publishing of overhead costs and claim payments;
  • H.R. ____, To amend title XVIII of the Social Security Act and title XXVII of the Public Health Service Act to require the displaying of claim denial rates;
  • H.R. 5582, Patients Deserve Price Tags;
  • H.R. 9117, Clear Healthcare Expense Cost Knowledge Act of 2026;
  • H.R. ____, To amend title XVIII of the Social Security Act to require the inclusion of certain information in Medicare Advantage encounter data;
  • H.R. ____, To amend title XI of the Social Security Act to require mandatory reporting with respect to certain health-related ownership information;
  • H.R. ____, To amend title XVIII of the Social Security Act to limit the compensation that may be paid to agents and brokers by Medicare Advantage organizations.

Other Health Policy News

• On June 8, 2026, the U.S. District Court for the District of Massachusetts blocked the Trump Administration from implementing a $100,000 fee for all new H-1B visa applications. This proposed fee was announced as a proclamation by the Executive Office of the President on September 19, 2025, entitled, Restriction on Entry of Certain Nonimmigrant Workers. The court ruled that the fee constituted an unlawful tax which was not authorized by Congress. It remains to be seen whether the Administration will appeal this decision or request a stay on the ruling.

  The court order is available here.

• On June 8, 2026, HHS announced that eight medical accrediting, assessment, and board organizations have voluntarily committed to implementing reforms aimed at instilling measurable nutritional education across key medical training programs. Further, an additional 19 medical schools have signed the Trump administration’s Nutrition Education Pledge, voluntarily pledging to require at least 40 hours of nutrition education, or implement a 40-hour competency equivalent, for students starting in the fall of 2026, adding to the 54 schools announced earlier this year.

  The HHS press release is available here. The Nutrition Education Pledge is available here.

• On June 8, 2026, HHS issued a social media post that read, “THE GRACE PERIOD HAS ENDED. Hospitals: post your real prices and comply with federal law.” An image associated with the post includes information stating that, since April 1, CMS has been reviewing hospitals to ensure compliance with price transparency laws and has notified over 500 hospitals that they are failing to provide the public with basic pricing information. The post further warns that fines for noncompliance accumulate daily and can reach up to $2 million for a single year of non-compliance.

  The full social media post is available here.

   

• On June 9, 2026, the House Appropriations Committee favorably reported the FY 2027 Labor-HHS appropriations bill by a vote of 34–28. The legislation proposes $189.3 billion in discretionary funding, representing a $5.6 billion, or three percent, decrease from FY 2026 enacted levels, and prioritizes investments in biomedical research, biodefense, and rural health while shifting greater responsibility for education to states. The bill includes $48.8 billion for biomedical research, additional funding for the Administration for Strategic Preparedness and Response (ASPR) to support medical countermeasures and domestic pharmaceutical supply chains, and a $184 million increase for Centers for Disease Control and Prevention (CDC) programs focused on public health preparedness and response. The bill also proposes consolidating certain global health programs into a new Global Emerging Infectious Diseases grant and includes provisions aimed at strengthening domestic manufacturing for the Strategic National Stockpile (SNS). In addition, the bill outlines efforts to address fraud, waste, and abuse in health care programs, streamline behavioral health programs while increasing funding for mental health and substance use block grants and the 988 Suicide and Crisis Lifeline, and maintain certain child welfare and tribal support services. Policy provisions in the bill include maintaining restrictions on the use of federal funds for abortion services under the Hyde Amendment, prohibiting funding for certain school activities related to discrimination, limiting funds for harm reduction programs, and eliminating or restructuring selected federal offices and programs identified as duplicative.

  During markup, the Committee adopted several bipartisan amendments by voice vote, including technical changes, expanded surveillance of vector-borne diseases, and directives for research on childcare and pain management. Notably, the bill includes language requiring the Department of Education (ED) to recognize advanced nursing programs as professional degree programs, in response to ED’s recent final rule classifying these programs as “graduate degree programs” subject to lower student loan borrowing limits.

  Bill text, before adoption of amendments, is available here. Bill report language, before adoption of amendments, is available here. A table of included Community Project Funding requests is available here. All proposed amendments may be found here.

   

• On June 9, 2026, Senator Bill Cassidy (R-LA) gave a Senate speech where he discussed rising health care costs and outlined his proposed Money and Value for Patients (MVP) agendas. Senator Cassidy highlighted trends in consumer debt, noting that Americans increasingly rely on credit to cover out-of-pocket medical expenses and that higher deductibles and increasing premiums have contributed to affordability challenges. Senator Cassidy also described the impact of health care costs on employers, particularly small businesses, who are constrained in their ability to expand or raise wages due to the rising cost of providing employee health insurance. He noted that employers often respond by offering lower-cost insurance plans with higher deductibles, which can shift additional financial responsibility onto employees and further contribute to household debt. To address these challenges, Senator Cassidy proposed the MVP plan, which seeks to redirect existing federal health care subsidies toward patients. Under the proposal, funds would be deposited into health savings accounts (HSAs) to help individuals cover out-of-pocket expenses, allowing families to opt into higher-deductible plans with lower premium costs. Senator Cassidy indicated that the approach is intended to be budget-neutral by restructuring current subsidy mechanisms rather than increasing overall federal spending.

  More information on this speech is available here. Senator Cassidy’s MVP agenda is available here.

• On June 10, 2026, the House Committee on Energy and Commerce Health Subcommittee held a hearing entitled, Lowering Health Care Costs for All Americans: Examining Policies to Increase Health Care Transparency. Throughout the hearing, members and expert witnesses examined how transparency and market dynamics contribute to rising health care costs, with a focus on legislative proposals to improve price, ownership, and insurance-related disclosures. Witnesses emphasized that health care spending in the U.S. is primarily driven by high and variable prices, rather than differences in quality, and pointed to consolidation across hospitals, physician practices, insurers, and private equity-backed entities as a key factor. Testimony highlighted that patients, employers, and policymakers often lack access to consistent information on prices, ownership structures, prior authorization practices, and claim denial rates, limiting their ability to make informed decisions. Proposals discussed included expanding price transparency requirements, improving employer access to claims data, strengthening ownership reporting, and increasing oversight of Medicare Advantage (MA) plans, including disclosure of denial rates, broker compensation, and supplemental benefit usage. Of note, the Patients Deserve Price Tags Act was frequently referenced throughout the hearing as a central proposal to standardize and enforce disclosure requirements, improve employer access to claims data, and enhance accountability across insurers and providers. The hearing reflected bipartisan recognition that additional policy interventions, including addressing consolidation, improving enforcement of transparency requirements, and restructuring payment incentives, may be necessary to meaningfully address health care affordability for patients, employers, and taxpayers.

  More information on this hearing is available here.

• On June 11, 2026, CMS issued guidance about its plans to strengthen budget neutrality standards for Medicaid section 1115 demonstrations. This new guidance previews CMS’s plans to propose a rule that would ensure consistent oversight and clear budget neutrality requirements for proposed demonstration projects, which will help states cost-effectively enhance programs and ensure fiscal integrity, while lowering costs and improving outcomes. Part of the One Big Beautiful Bill Act (OBBBA) (also referred to as the Working Families Tax Cut (WFTC) legislation) requires the CMS Chief Actuary to certify that Medicaid section 1115 demonstrations are budget neutral, meaning they will not cost the federal government more than running Medicaid programs the usual way. Beginning January 1, 2027, CMS will not approve new demonstrations, demonstration renewals, or demonstration amendments unless the CMS Chief Actuary certifies that the demonstration project is not expected to increase federal spending compared to the state’s Medicaid program without the demonstration.

CMS is publishing this guidance to provide states with early notice regarding the changes to budget neutrality that CMS intends to propose to implement this new requirement. CMS expects to begin applying the approach described in this guidance to new demonstration, amendment, and renewal approvals until a final rule is effective, in light of the statutory language requiring the Chief Actuary’s certification for these demonstration approvals on or after January 1, 2027.

The State Medicaid Director Letter is available here.

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