Health Care Week in Review | CMS Releases Interim Final Rule on Medicaid Work Requirements; House Appropriations Subcommittee Advances Labor-HHS Funding Bill

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 June 1, 2026, the Department of Health and Human Services (HHS) released a rule entitled, Vacatur Regarding Certain Provisions of the 2024 Nondiscrimination in Health Programs and Activities. This rule informs the public that, on October 22, 2025, the U.S. District Court for the Southern District of Mississippi issued an order in Tennessee v. Kennedy, No. 1:24- cv-161-LG-BWR (S.D. Miss. Oct. 22, 2025), vacating portions of the final rule entitled, Nondiscrimination in Health Programs and Activities, published May 6, 2024 (89 FR 37522). Specifically, the court vacated certain provisions of the regulation to the extent they expand Title IX’s definition of sex discrimination to include gender-identity discrimination. Pursuant to the court’s order, the vacated provisions are legally void. The other provisions of the Section 1557 Rule remain in force.
• On June 1, 2026, the Centers for Medicare & Medicaid Services (CMS) released a rule entitled, Community Engagement Requirement for Certain Individuals. CMS released this interim final rule to implement Section 71119 of the One Big Beautiful Bill Act (OBBBA) (also referred to as the Working Families Tax Cuts Legislation (WFTCL) that requires certain adult Medicaid enrollees to meet community engagement (work) requirements. Beginning January 1, 2027, adults aged 19 to 64 covered through the Affordable Care Act (ACA) Medicaid expansion must demonstrate at least 80 hours per month of work, community service, work program participation, or half-time educational enrollment to maintain eligibility. In the rule, CMS maintains exemptions for certain populations, including individuals who are disabled or medically frail, pregnant and postpartum, or certain caregivers, and allows states to offer exemptions for short-term hardships. Adults must meet the work requirement at the time of application and during periodic renewals of eligibility. If a state cannot verify that an individual meets the requirement, it must send a notice of noncompliance and allow a 30-day period for that individual to prove to the state that they either meet the requirement or are exempt. If someone is disenrolled due to not meeting the requirement, they may reapply for Medicaid coverage once they have fulfilled the conditions of eligibility. States are responsible for implementing and administering the work requirement and must do so no later than January 1, 2027. This includes identifying who is and is not subject to the work requirement, including who meets an exception; verifying that applicable individuals meet the requirement at application and renewal; providing outreach and notice to affected populations; taking defined steps when individuals are found noncompliant or compliance cannot be verified; and submitting data to CMS to support monitoring and program integrity.
• On June 2, 2026, the Food and Drug Administration (FDA) released guidance entitled, Drug and Device Manufacturer Communications with Payors, Formulary Committees, and Similar Entities—Questions and Answers. This revised draft guidance, if finalized, would provide answers to common questions regarding the communication of health care economic information (HCEI) about approved prescription drugs and approved/cleared medical devices by medical product manufacturers, packers, distributors, and their representatives to payors, formulary committees, or other similar entities with knowledge and expertise in the area of health care economic analysis, for the purpose of carrying out their responsibilities for the selection of medical products for coverage or reimbursement. This revised draft guidance would also provide answers to common questions about firms’ dissemination of information to payors about medical products that are not yet approved/cleared for any use and firms’ dissemination of information to payors about unapproved uses of approved/cleared medical products.
• On June 2, 2026, FDA released draft guidance entitled, Leveraging Prior Knowledge in the Development of Human Gene Therapy Products. The draft guidance, if finalized, would provide sponsors engaged in the development of human gene therapy (GT) products incorporating ex-vivo and in vivo genome editing of human somatic cells with FDA’s recommendations on the type of prior knowledge that may be scientifically appropriate to leverage to advance product development.
• On June 2, 2026, FDA released final guidance entitled, M15 General Principles for Model-Informed Drug Development; International Council for Harmonisation. The guidance provides general recommendations for the planning, model evaluation, and documentation of evidence derived from model-informed drug development (MIDD). It establishes a harmonized assessment framework for the MIDD evidence. It also provides recommendations for related regulatory interactions, reporting, and submission. This guidance is intended to facilitate a multidisciplinary understanding of MIDD and associated evidence generation. The guidance finalizes the draft guidance of the same title issued on December 30, 2024.
• On June 3, 2026, HHS released a notice entitled, Interest Rate on Overdue Debts. Section 30.18 of the HHS claims collection regulations (45 CFR part 30) provides that the HHS Secretary shall charge an annual rate of interest, which is determined and fixed by the Secretary of the Treasury after considering private consumer rates of interest on the date that HHS becomes entitled to recovery. The rate cannot be lower than the Department of Treasury's current value of funds rate or the applicable rate determined from the Schedule of Certified Interest Rates with Range of Maturities, unless the Secretary of the Treasury waives interest in whole or part, or a different rate is prescribed by statute, contract, or repayment agreement. The Secretary of the Treasury may revise this rate quarterly. HHS publishes this rate in the Federal Register. The current rate of 11 1/8 percent, as fixed by the Secretary of the Treasury, is certified for the quarter that ended on September 30, 2025; 11 5/8 percent for the quarter that ended on December 31, 2025; and 11 3/8 percent for the quarter that ended on March 31, 2026. This rate is based on the Interest Rates for Specific Legislation entitled, National Health Services Corps Scholarship Program (42 U.S.C. 254o(b)(1)(A)) and National Research Service Award Program (42 U.S.C. 288(c)(4)(B)). This interest rate will be applied to overdue debt until HHS publishes a revision.
• On June 4, 2026, FDA released a final rule entitled, Orthopedic Devices; Classification of the Absorbable Metallic Bone Fixation Fastener. FDA is classifying the absorbable metallic bone fixation fastener into class II (special controls). The special controls that apply to the device type are identified in this rule and will be part of the codified language for classification of the absorbable metallic bone fixation fastener. 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 4, 2026, FDA released a final rule entitled, Orthopedic Devices; Classification of the Resorbable Calcium Salt Bone Void Filler Containing a Single Approved Aminoglycoside Antibacterial. FDA is classifying the resorbable calcium salt bone void filler containing a single approved aminoglycoside antibacterial into class II. The special controls that apply to the product type are identified in this rule and will be part of the codified language for classification of the resorbable calcium salt bone void filler containing a single approved aminoglycoside antibacterial. 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 4, 2026, FDA released a final rule entitled, Medical Devices: Orthopedic Devices; Classification of the Shoulder Joint Humeral (Hemi-Shoulder) Ceramic Head / Metallic Stem Cemented or Uncemented Prosthesis. FDA is classifying the shoulder joint humeral (hemi-shoulder) ceramic head / metallic stem cemented or uncemented prosthesis into class II. 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 shoulder joint humeral (hemi-shoulder) ceramic head / metallic stem cemented or uncemented prosthesis. 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 4, 2026, FDA released guidance entitled, Intent to Exempt Certain Unclassified Medical Devices from Premarket Notification Requirements. This guidance describes FDA's intent to exempt certain unclassified medical devices from premarket notification requirements. At this time, and based on the information currently available to the agency, FDA believes the devices identified in this guidance meet the standards for exemption from premarket notification. This guidance has been implemented without prior comment, but it remains subject to comment in accordance with FDA's good guidance practices.

Event Notices

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

• June 8, 2026: The National Institutes of Health (NIH) announced a meeting of the President’s Cancer Panel. This is an in-person meeting open to the public.
• June 8-9, 2026: FDA announced a public workshop entitled, Fiscal Year 2026 Generic Drug Science and Research Initiatives Workshop. This is a hybrid meeting open to the public.
• June 9, 2026: NIH announced a meeting of the National Heart, Lung, and Blood Institute. This is an in-person meeting open to the public. 
• June 10, 2026: CMS announced a public meeting regarding new and reconsidered clinical diagnostic laboratory test codes for the Clinical Laboratory Fee Schedule (CLFS) for calendar year (CY) 2027. 
• June 10-11, 2026: NIH announced a meeting of the National Institute of Diabetes and Digestive and Kidney Diseases (NIDDK). This is a hybrid meeting with some sessions open to the public.
• June 12, 2026: NIH announced a meeting of the NIH Clinical Center Research Hospital Board. This is a hybrid meeting open to the public.
• 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 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 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: 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 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 1, 2026, the HHS Office of Inspector General (OIG) released a report entitled, CMS Potentially Overpaid Medicare Advantage Organizations $462 Million Based on Certain Unsupported Acute Stroke Diagnosis Codes. The report outlines OIG’s nationwide audit of Medicare Advantage (MA) risk adjustment practices, which found that CMS potentially overpaid MA organizations by approximately $462 million in 2021 due to unsupported acute stroke diagnosis codes submitted on physician records. The report explains that CMS relies on diagnosis codes reported by MA organizations to calculate risk-adjusted payments, which increase when enrollees are coded as having more serious conditions. However, in reviewing a sample of 97 enrollees, OIG found that none of the acute stroke diagnoses submitted were supported by the corresponding medical records, often because the records reflected a past history of stroke rather than an active acute event or lacked any documentation of a stroke diagnosis. These errors occurred in part because CMS’s existing procedures and data filters did not adequately prevent questionable diagnosis codes submitted through physician encounters from being used in payment calculations, even when no supporting hospital record existed during the same year. As a result, inflated risk scores led to higher payments to MA organizations. OIG concluded that stronger prepayment safeguards are needed and recommended that CMS implement controls to flag and prevent such unsupported diagnoses from influencing payment. CMS did not explicitly agree or disagree with the recommendation but noted ongoing efforts to improve payment accuracy.
• On June 2, 2026, the Government Accountability Office (GAO) released a report entitled, Electronic Health Records: Better Goals and Measures Would Improve Interagency Cybersecurity Collaboration. The report examines the cybersecurity and privacy management of the federal electronic health record (EHR) system, a massive shared platform used by the Department of Defense (DOD), Department of Veterans Affairs (VA), and other federal partners to deliver care to millions of patients. The report explains that the system is central to modernizing federal health care and is expected to support more than 500,000 users treating over 18 million beneficiaries. However, it also faces significant and growing cybersecurity risks, particularly as recent ransomware attacks have demonstrated the potential to disrupt care and compromise sensitive health data. GAO concluded that stronger leadership, clearer objectives, and defined performance measures are necessary to improve coordination and safeguard the system, recommending that DOD and VA direct the FEHRM to establish and monitor specific goals and outcomes to better ensure the security and integrity of the federal EHR system.
• On June 5, 2026, KFF released a report entitled, Medicare Advantage in 2026: Premiums, Out-of-Pocket Limits, Supplemental Benefits, and Prior Authorization. KFF describes how private plans continue to attract a growing share of Medicare beneficiaries by offering low premiums, capped out-of-pocket spending, and a wide array of supplemental benefits, though these features are shaped by underlying payment policies and cost management practices. The analysis explains that MA plans receive fixed, risk-adjusted payments from the federal government and, in 2026, are able to offer additional benefits in part because payments exceed estimated costs by an average of roughly $2,664 per enrollee, allowing plans to use these rebate dollars to reduce premiums and fund extra services. As a result, three-quarters of enrollees in plans with prescription drug coverage pay no additional premium beyond the standard Part B premium, with an average supplemental premium of about $15 per month. Most enrollees remain concentrated in health maintenance organization (HMO) plans with limited provider networks, while preferred provider organization (PPO) plans offer more flexibility at higher cost sharing. The report also highlights that MA plans provide financial protections not available in traditional Medicare through out-of-pocket limits averaging $5,421 for in-network services, though limits are higher for PPOs and have increased slightly in recent years.

Hearings & Markups

• On June 3, 2026, the Senate Committee on Health, Education, Labor and Pensions (HELP) held a hearing entitled, Protecting Our Children: Exposing the Dangers of Irreversible Gender Transition Procedures on Minors. Witnesses present included: Dr. Kurt Miccli, Chie Medical Officer, Do No Harm; Ms. Chloe Cole, De-transitioner and Advocate; and Ms. Shannon Minter, Legal Director, National Center for LGBTQ Rights.
• On June 3, 2026, the House Committee on Oversight and Government Reform held a hearing entitled, Universal Basic Fraud: Vulnerabilities in Medicaid Waiver Programs. Witnesses present included: Mr. Luke Rosiak, Investigative Reporter, Daily Wire; Representative Michael D. Dovilla, Ohio House of Representatives, District 17; Mr. Keith Faber, Ohio Auditor of State; and Senator Nickie Antonio, Ohio Senate, District 23.
• On June 3, 2026, the House Energy and Commerce Committee held a hearing entitled, CMT Hearing: Examining Legislation to Establish a Federal Comprehensive Privacy and Data Security Law. Witnesses present included: Mr. Tyler R. Bridegan, Partner, Womble Bond Dickinson (WBD); Former Director of Privacy and Technology Enforcement, Office of the Texas Attorney General; Ms. Kate Goodloe, Managing Director, Business Software Alliance; Ms. Ashli Watts, President and Chief Executive Officer (CEO), Kentucky Chamber of Commerce; and Ms. Caitriona Fitzgerald, Deputy Director and Policy Director, Electronic Privacy Information Center (EPIC).
• On June 3, 2026, the Senate Homeland Security and Governmental Affairs Permanent Subcommittee on Investigations held a hearing entitled, Plausible Mechanisms of COVID-19 Injections Causing Cancer and Attacks on Scientific Publications. Witnesses present included: Dr. Angus Dalgleish, Professor Emeritus of Oncology, City St. George’s, University of London; Dr. Wafik El-Deiry, Director, Legorreta Cancer Center, Brown University; Dr. Sabine Hazan, CEO, ProgenaBiome; Dr. Saskia Mostert, former research coordinator of global health and pediatric oncology outreach programs in Indonesia and Kenya; Dr. Aseem Malhotra, Consultant Cardiologist, HUM2N Clinic; Dr. Julie Gralow, Chief Medical Officer, American Society of Clinical Oncology; and Ms. Tamika Felder, Cancer Survivor.
• On June 3, 2026, the Senate Special Committee on Aging held a hearing entitled, Hearings to examine the human cost of dangerous foreign drugs. Witnesses present included: Ms. Lisa Salberg, Founder and CEO, Hypertrophic Cardiomyoptahy Association; Dr. Adam Clark-Joseph, Chief Analytics Officer and Co-Founder, Valisure; Dr. Suzanne de la Monte, Professor and Vice Chair of Pathology and Laboratory Medicine, Alpert Medical School of Brown University; and Mr. Dinesh Thakur, Public Health Activist.
• On June 4, 2026, the House Judiciary Committee held a hearing entitled, Medicines and IP: Balancing Innovation and Access. Witnesses present included: Ms. Krista Carver, Partner, Covington & Burling; Mr. Michael Carrier, Board of Governors Professor, Rutgers Law School; Mr. Michael Carrier, Board of Governors Professor, Rutgers Law School; and Ms. Jamie Simpson, Chief Policy Officer and Counsel, Council for Innovation Promotion.
• On June 5, 2026, the House Committee on Appropriations Subcommittee on Labor, Health and Human Services, Education, and Related Agencies (Labor-HHS) held a markup of the Fiscal Year (FY) 2027 Labor-HHS Bill. Bill text is available here.

Other Health Policy News

Executive Order Reviews Childhood Vaccine Recommendations

On May 29, 2026, President Donald Trump signed an executive order (EO) entitled, Realigning United States Core Childhood Vaccine Recommendations with Best Practices from Peer, Developed Countries. Under this EO, the Centers for Disease Control and Prevention (CDC) and the Advisory Committee on Immunization Practices (ACIP) are directed to review a scientific assessment by HHS on childhood vaccine recommendations from other developed nations and take any appropriate steps to update the U.S. childhood and adolescent vaccine schedule in alignment with those from other nations. Agencies also are advised to consider ways to provide maximum flexibility to parents and doctors through recommendations for timing and sequencing of the administration of routine immunizations. Furthermore, under the EO, all of the immunizations in any category on the schedule recommended by the ACIP and adopted by the CDC should continue to be covered without cost sharing by private insurance and covered by Medicaid, CHIP, and the Vaccines for Children Program.

The EO may be found here and the HHS assessment on the U.S. childhood and adolescent vaccine schedule may be found here.

OMB Proposal to Overhaul Federal Grants Framework

On May 29, 2026, the Office of Management and Budget (OMB) released a proposed rule entitled, Regulation for Federal Financial Assistance, which aims to improve government-wide policies governing the management of grants, cooperative agreements, and other forms of financial assistance. Under the proposed rule, OMB would transform the grants framework in subtitle A of Title 2 from guidance into formally binding OMB regulation. As a result, any future revisions made by OMB would apply across all agencies as of OMB’s specified effective date, without requiring separate rulemaking by individual agencies.

Proposals of note include, but are not limited to, OMB prohibiting the use of federal funds for activities that promote or support diversity, equity, and inclusion programs; theories of disparate-impact liability based on protected characteristics such as race or sex; and gender transition of children under 19. In addition, the proposed rule would clarify and broaden federal agencies’ authority to terminate or suspend discretionary awards that no longer align with program objectives, agency priorities, or national interest. OMB would eliminate fixed-amount awards and subawards, requiring instead that funding be provided through cost-reimbursement mechanisms, and would mandate non-state recipients and subrecipients to submit written justifications with payment requests explaining the specific activities supported by the funds. OMB would also impose new requirements on pass-through entities. These entities would be required to report subawards to SAM.gov and must ensure that subrecipients do not “significantly damage” the reputation of the pass-through entity or federal government. OMB additionally proposes an expansion of ‘Buy America’ provisions, directing agencies to maximize the use of domestically produced goods, products, and materials. Lastly, OMB would require senior political appointments to review awards prior to issuance to ensure that all discretionary awards adhere to administration priorities and are compliant and permissible under applicable law.

In the proposed rule, OMB acknowledges legislative language included in recent appropriations bills barring federal agencies from altering Facilities and Administration (F&A) rates, or indirect costs. As a result of this language, OMB does not propose updates to the indirect cost rate negotiation system, though the agency notes that it may issue a request for information on this topic in the future.

The proposed rule as published in the Federal Register is available here. Comments are due on July 13, 2026, marking the end of a 45-day comment period.

Executive Order on AI Security and Cyber Defense

On June 2, 2026, President Donald Trump signed an EO entitled, Promoting Advanced Artificial Intelligence Innovation and Security. This EO directs certain federal agencies to issue guidance to prioritize the cyber defense of civilian federal information systems, establish or expand federal programs and cybersecurity services that enhance artificial intelligence (AI)-enabled defensive tools, and facilitate access to cybersecurity tools and services, including covered frontier models. The EO also establishes an AI cybersecurity clearinghouse to coordinate, discover, and remediate software vulnerabilities. Additionally, federal agencies will be required to develop and maintain a benchmarking process to assess cyber capabilities of AI models and determine when AI models should be designated as covered frontier models. As a result, the agencies must design a voluntary framework with AI developers to provide the federal government with access to covered frontier models for 30 days before releasing such models to others.

The EO is available here.

House Rules Committee Advances FY2027 Agriculture–FDA Spending Bill

On June 2, 2026, the House Committee on Rules met to consider several measures, including H.R. 8646, the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2027, which would fund the Food and Drug Administration (FDA) for FY 2027, with debate centering in part on proposed restrictions related to the abortion pill mifepristone. Of note, Representative Chip Roy (R-TX) introduced two amendments aimed at reinstating in-person dispensing requirements for mifepristone and blocking federal funding for the FDA’s 2023 policy changes that allow the medication to be prescribed via telehealth and distributed through the mail. One amendment would have prohibited implementation of the mail-order policy outright, while another would have conditioned funding on the FDA producing additional safety data on mifepristone, including information on adverse events and emergency room visits. The Rules Committee advanced a structured rule governing floor consideration of the bill by an 8 to 4 vote, allowing only a limited set of amendments to be considered and excluding the mifepristone-related proposals. The House subsequently adopted the rule by a 211 to 207 vote, enabling consideration of the appropriations measure under those terms. The decision reflects ongoing tensions around abortion policy in the appropriations process, as FDA continues its safety review of mifepristone amid continued calls from some advocates for stricter limitations on its distribution.

More information on this meeting is available here. The bill text is available here.

Executive Order Expands “Schedule Policy/Career” Classification

On June 3, 2026, President Donald Trump signed an EO entitled, Implementing Schedule Policy/Career in the Excepted Service. This EO will eliminate civil service protections for around 8,000 senior federal workers by making them “at-will” employees. The EO specifies the government positions that will be reclassified into a new category called Schedule Policy/Career, which includes directors, chiefs of staff, senior advisors, policy analysts, and those with “significant involvement” in drafting regulations and determining grant awards. Agencies will be able to quickly remove employees in this category for “poor performance, misconduct, corruption, or subversion of Presidential directives without lengthy procedural hurdles that often prevent accountability,” as stated in a White House fact sheet.

This EO follows an Office of Personnel Management (OPM) final rule released on February 6, 2026, that created the Schedule Policy/Career classification. Positions placed in the category remain career jobs filled on a nonpartisan basis but will lose the right to adverse action procedures or appeals, accelerating the termination process.

The EO is available here and the White House fact sheet is available here. The February 2026 OPM final rule may be found here.

House Advances FY2027 Labor–HHS–Education Spending Bill

On June 4, 2026, the House Appropriations Committee released its FY 2027 Labor-HHS funding bill, which was advanced by the Labor-HHS Subcommittee in a June 5, 2026 markup on an 11 to seven party line vote. 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 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.

In a press release, the Committee stated the bill is intended to align with broader fiscal and policy priorities focused on reducing federal spending, consolidating programs, and reallocating resources toward public health preparedness, research, and workforce-related initiatives. The entire House Appropriations Committee will mark up the bill on June 9, 2026. 

A summary of the bill can be found here. The bill text is available here. A press release is available here. 

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