Health Care Week in Review | CMS Releases CY 2027 Physician Fee Schedule Proposed Rule; DHS Restores Consideration of Medicaid Use in Immigration Determinations

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 July 13, 2026, the Food and Drug Administration (FDA) released final guidance entitled, Formal Meetings Between FDA and Sponsors or Requestors of Over-the-Counter Monograph Drugs. This guidance provides recommendations to industry on formal meetings between FDA and sponsors or requestors of over-the-counter (OTC) monograph drugs, or organizations nominated by sponsors or requestors to represent their interests in a proceeding, and discusses the procedures and principles for these formal meetings.
• On July 13, 2026, FDA released final guidance entitled, Topical Dermatologic Corticosteroids: In Vivo Bioequivalence. This guidance provides recommendations to applicants who submit abbreviated new drug applications (ANDAs) for topical dermatologic corticosteroids of all potency groups. The guidance describes recommendations for an in vivo pharmacodynamic approach to demonstrate the bioequivalence (BE) of topical dermatologic corticosteroids. This guidance provides clarity for potential ANDA applicants on the appropriate pilot dose duration vasoconstrictor response and pivotal vasoconstrictor BE studies and other recommendations for pharmacodynamic approaches to assess the BE of topical dermatologic corticosteroids.
• On July 14, 2026, the Centers for Medicare & Medicaid Services (CMS) released a proposed rule entitled, Medicare and Medicaid Programs: Calendar Year 2027 Payment Policies under the Physician Fee Schedule and Other Changes to Part B Payment and Coverage Policies; Medicare Shared Savings Program Requirements; and Medicare Prescription Drug Inflation Rebate Program. The proposed rule includes changes to the Physician Fee Schedule (PFS) and other Medicare Part B payment policies to ensure payment systems reflect changes in medical practice, the relative value of services, and statutory requirements. The proposed rule also proposes to codify or establish policies related to the Medicare Prescription Drug Inflation Rebate Program, the Ambulatory Specialty Model (ASM), and payment policies for drugs and biological products paid under Medicare Part B. In addition, the proposed rule includes updates to Medicare Shared Savings Program (MSSP) requirements, the Quality Payment Program (QPP), Rural Health Clinic (RHC) and Federally Qualified Health Center (FQHC) policies, Ambulance Fee Schedule (AFS) regulations, Clinical Laboratory Fee Schedule (CLFS) regulations, and the Medicare Promoting Interoperability Program (MPIP). The proposed rule also implements and codifies provisions enacted through the Inflation Reduction Act of 2022 (IRA) and the Consolidated Appropriations Act, 2026.
• On July 15, 2026, the Centers for Disease Control and Prevention (CDC) released a notice entitled, Order Continuing the Suspension of the Right to Introduce Certain Persons from Countries Where a Quarantinable Communicable Disease Exists. CDC issued an order to continue the suspension of the right to introduce certain persons from countries where an outbreak of a quarantinable communicable disease exists. This notice was issued on July 13, 2026, and will remain in effect through 4:59 p.m. Eastern Daylight Time (EDT) on Wednesday, August 12, 2026. This notice may be amended or rescinded prior to that time at the discretion of the CDC Director.
• On July 15, 2026, FDA released a notice entitled, Process for FDA Data Requests to Inform Certain Over-the-Counter Monograph Drug Activities. FDA announced the process for the agency to issue Data Requests for the submission of data from the public to help inform certain future OTC monograph drug activities, including development of FDA-initiated proposed orders to modify conditions described in an OTC monograph.

Event Notices

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

• July 23-24, 2026: FDA announced a meeting of the Pharmacy Compounding Advisory Committee. This is a hybrid meeting open to the public.
• July 29, 2026: FDA announced a meeting of the Cellular, Tissue, and Gene Therapies Advisory Committee. This is a virtual meeting open to the public.
• July 30, 2026: FDA announced a meeting of the Cellular, Tissue, and Gene Therapies Advisory Committee. This is a virtual meeting open to the public.
• July 31, 2026: The National Institutes of Health (NIH) announced a meeting of the Interagency Autism Coordinating Committee (IACC). This is a hybrid meeting open to the public.
• August 2-4, 2026: NIH announced a meeting of the Board of Scientific Counselors, National Institute Environmental Health Sciences. This is a virtual meeting with some sessions open to the public.
• August 5, 2026: FDA announced a meeting entitled, Medical Device User Fee Amendments. 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 24, 2026: CMS announced a meeting of the Advisory Panel on Hospital Outpatient Payment. This is a virtual 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.
• August 26, 2026: CDC announced a meeting of the Advisory Board on Radiation and Worker Health (ABRWH). This is a hybrid meeting open to the public.
• **August 31, 2026: NIH announced a meeting of the National Institute on Minority Health and Health Disparities. This is a virtual meeting with some sessions open to the public.
• September 2, 2026: NIH announced a meeting of the National Cancer Institute (NCI). This is a virtual meeting with some sessions open to the public.
• **September 9-10, 2026: The Department of Health and Human Services (HHS) announced a meeting of the Presidential Advisory Council on Combating Antibiotic-Resistant Bacteria (PACCARB). 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 11, 2026: NIH announced a meeting of the National Advisory Council for Complementary and Integrative Health (NCCIH).
• **September 14, 2026: FDA announced a meeting on the potential future therapeutic use of psychedelic drugs. This is a hybrid hearing open to the public.
• September 14-15, 2026: HHS announced a meeting of the Physician-Focused Payment Model Technical Advisory Committee (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 (CDLTs). 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 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 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.
• September 28-29, 2026: NIH announced a meeting of the National Advisory Council for Human Genome Research. This is a hybrid meeting with some sessions open to the public.
• **October 8, 2026: CDC announced a meeting of the Advisory Board on Radiation and Worker Health (ABRWH). 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.
• October 20, 2026: NIH announced a meeting of the Advisory Committee on Research on Women’s Health. This is a virtual meeting open to the public.
• October 28, 2026: NIH announced a meeting of the National Institute of Diabetes and Digestive and Kidney Diseases (NIDDK). This is a virtual meeting with some sessions 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 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 PACCARB. This is a virtual meeting open to the public.

Reports, Studies & Analyses

• On July 13, 2026, the Government Accountability Office (GAO) released a report entitled, Health Insurance Marketplaces: CMS Needs Stronger Controls to Prevent Unauthorized Actions by Agents and Brokers. GAO examined whether CMS has adequate controls to ensure that agents and brokers assisting consumers in the federally facilitated Affordable Care Act (ACA) Marketplace are properly licensed and registered, and that consumers authorize and are informed of agent and broker actions on their accounts. GAO found that while CMS generally has effective processes for verifying licensure and registration, its safeguards against unauthorized enrollments and plan changes are insufficient. Specifically, CMS does not adequately verify consumer consent, allows broad access to consumer enrollment records, and does not notify consumers of all agent or broker activity. These weaknesses have left consumers vulnerable to unauthorized plan enrollments and switches, with confirmed complaints increasing more than fourfold between 2023 and 2025. GAO recommended that CMS implement stronger consumer-protection measures, such as one-time passcodes and improved notifications, and periodically assess the effectiveness of those controls.
• On July 16, 2026, GAO released a report entitled, Science & Tech Spotlight: AI for Medical Notes and Coding. GAO examined the growing use of artificial intelligence (AI) tools to assist with clinical documentation and medical coding. The report found that AI scribes and coding tools may help reduce clinicians’ administrative workload, improve efficiency, and lessen burnout by automating tasks such as drafting patient notes and generating billing codes. However, GAO also highlighted several concerns, including limited independent evidence on the accuracy of these tools, potential impacts on health care spending and reimbursement, barriers to adoption for smaller providers, and risks related to patient privacy and consent. GAO concluded that policymakers may need additional information about the performance and effects of these technologies to determine the appropriate level of oversight and ensure accurate billing and patient protections.

Hearings & Markups

• On July 14, 2026, the House Education and Workforce Committee held a hearing entitled, Training Activists, Not Physicians: The Impact of DEI on Medical Schools. Witnesses present included: Dr. Steve Dubinett, Dean, University of California, Los Angeles David Geffen School of Medicine; Dr. Sam Hawgood, Chancellor, University of California, San Francisco; Dr. Roger A. Mitchell, Jr., President, National Medical Association; and Dr. Enrico Benedetti, Interim G. Stephen Irwin Executive Dean, University of Illinois College of Medicine.
• On July 14, 2026, the Senate Judiciary Committee held a hearing entitled, From Genes to Machines: the Patent Eligibility Debate. Witnesses present included: Mr. Andrei Iancu, Co-Chair, Council for Innovation Promotion, Former Under Secretary of Commerce for Intellectual Property and Director of the United States Patent and Trademark Office (USPTO); Mr. J. John Lee, Senior Director, Head of Intellectual Property (IP) Policy, Computer & Communications Industry Association; Dr. Debra G.B. Leonard, Professor and Chair, University of Vermont College of Medicine; Dr. Robert Larner, College of Medicine, University of Vermont; and Ms. Sue Peschin, President and Chief Executive Officer (CEO), Alliance for Aging Research.
• On July 15, 2026, the House Way and Means Committee held a markup of the following legislation: H.R. 9641, the Essential Caregivers Act of 2026; H.R. 3108, the Rural Patient Monitoring Access Act; H.R. 9642, the Medicare Access to Rural Anesthesiology Act; H.R. 9468, the Saving Today’s Acute-Care Resources (STAR) Act; H.R. 3514, the Improving Seniors’ Timely Access to Care Act of 2025; H.R. 9644, the Medicare Advantage MLR Transparency Act; and H.R. 9645, the Health Care Price Certainty for All Americans Act.
• On July 15, 2026, the Senate Committee on Health, Education, Labor, and Pensions (HELP) held a hearing entitled, Nominations of Sean Kaufman to be Assistant Secretary for Preparedness and Response for the Department of Health and Human Services and Erica Schwartz to be Director of the Centers for Disease Control and Prevention. Witnesses present included: Mr. Sean Kaufman, Nominee to be Assistant Secretary for Preparedness and Response for HHS, and Dr. Erica Schwartz, Nominee to be Director of the CDC.
• On July 15, 2026, the House Select Committee on China held a hearing entitled, Protecting American Innovation: The Federal Research Security Enterprise. Witnesses present included: Mr. Jeremy Ison, Chief of Staff to the Under Secretary for Science, U.S. Department of Energy; Dr. Patricia Valdez, Chief Extramural Research Integrity Officer, NIH; and Dr. Rebecca Keiser, Acting Chief of Staff and Chief of Research Security Policy and Strategy, National Science Foundation.
• On July 15, 2026, the House Energy and Commerce Committee held a hearing entitled, Maintaining America’s Leadership in Biomedical Innovation: FDA’s Role in Advancing U.S. Drug Development. Witnesses present included: Ms. Cynthia Verst, President, Design and Delivery Innovation, Research and Development (R&D) Solutions, IQVIA; Ms. Susan C. Winckler, CEO, Reagan-Udall Foundation for the FDA; Dr. Aaron J. Kowalski, CEO, Breakthrough T1D; Dr. Thomas Hwang, Assistant Professor of Medicine, Brigham and Women's Hospital and Harvard Medical School; Mr. Thomas K. Bollyky, Bloomberg Chair in Global Health, Senior Fellow for International Economics, Law, and Development and Director, Global Health Program, Council on Foreign Relations.
• On July 15, 2026, the Senate Special Committee on Aging held a hearing entitled, Behind the Label: Foreign Ownership and Control in America's Drug Supply Chain. Witnesses present included: The Honorable Nazak Nikakhtar, Partner and Chair of the National Security Practice, Wiley Rein LLP; Mr. Stephen Ezell, Vice President for Global Innovation Policy, Information Technology and Innovation Foundation (ITIF); Mr. Edward You, Founder and Principal Consultant, EHY Consulting LLC; and Dr. Rush Doshi, C.V. Starr Senior Fellow for Asia Studies and Director of the China Strategy Initiative, Council on Foreign Relations and Assistant Professor, Georgetown School of Foreign Service.
• On July 16, 2026, the House Committee on the Budget held a markup of The Concurrent Resolution on the Budget for Fiscal Year 2027. Following the markup, the House released a 15-page, clean CR on July 17, 2026. The full bill text is available here.

Other Health Policy News

CMS Proposes CY 2027 Medicare Payment, Quality Program, and Drug Rebate Changes

On July 14, 2026, CMS released the Calendar Year (CY) 2027 Payment Policies Under the Physician Fee Schedule and Other Changes to Part B Payment and Coverage Policies; Medicare Shared Savings Program Requirements; and Medicare Prescription Drug Inflation Rebate Program proposed rule. CMS proposes a decrease in payments to physicians by reducing the qualifying alternative payment model participant (QP) conversion factor by 1.19 percent and reducing the non-QP conversion factor by 1.68 percent in CY 2027 compared to the CY 2026 rates. CMS would also reduce payments to providers when a separately identifiable office or outpatient evaluation and management (E/M) visit is furnished by the same provider on the same day as a 0-, 10-, or 90-day global procedure by reimbursing only the most expensive service fully and reimbursing all other services at a 50 percent payment rate.

In addition, CMS proposes to transition the office/outpatient (O/O) E/M visit complexity add-on code to modifiers that would increase payment of the associate E/M code by a percentage instead of a flat rate. CMS also proposes new requirements for two code families that describe certain remote monitoring services as well as updates to how these services are valued under the PFS. CMS would also phase out part of the methodology that aligns the overall number of practice expense (PE) relative value units (RVUs) with specialty-specific PE per hour (PE/HR) data from 2007 or earlier and replace it with a PE stabilizer, and would adjust the indirect PE allocation for visits furnished to beneficiaries in a Part A stay in a skilled nursing facility. CMS further proposes to establish separate coding and payment for shared medical appointments for the prevention and management of chronic diseases, and to implement certain adjustments for timed behavioral health codes. CMS would also create two new codes to describe advance care planning (ACP) services furnished by clinical staff under the direct supervision of the billing physician or other practitioner.

CMS also proposes to recognize Diabetes Self-Management Training (DSMT) and Medical Nutrition Therapy (MNT) services as qualified preventive services that are covered and paid the all-inclusive rate as stand-alone billable visits under the Rural Health Clinic (RHC) benefit to align with payment policies for Federally Qualified Health Centers (FQHCs) and physician offices. CMS would make conforming regulatory changes to implement the Consolidated Appropriations Act, 2026 (CAA, 2026) requirement that in-person visit requirements for mental health visits not apply to any services furnished through December 31, 2027 and the extension of CMS’s authority to pay RHCs and FQHCs for non-behavioral health visits furnished via telecommunication technology through December 31, 2027. CMS would also make conforming regulatory changes to implement CAA, 2026 amendments to the Medicare Clinical Laboratory Fee Schedule (CLFS). CMS also proposes regulatory changes to implement statutory limitations on Medicare eligibility.

Moreover, CMS proposes to phase out the traditional Merit-based Incentive Payment System (MIPS) reporting beginning in the CY 2029 performance period in favor of the adoption of three new MIPS Value Pathways (MVPs) focused on diabetes, hypertension, and hospital-based care under the QPP. CMS also proposes several changes to the Medicare Shared Savings Program (MSSP) such as improving benchmark accuracy, expanding participation, and reducing administrative burden of participation in MSSP. CMS further proposes to increase the shared savings rate for Level E of the BASIC track from 50 percent to 60 percent and reduce the maximum weight used in calculating the positive regional adjustment for accountable care organizations (ACOs) from 50 percent to 35 percent by April 1, 2027.

Finally, CMS proposes new policies for the Medicare Part B Drug Inflation Rebate Program and Medicare Part D Drug Inflation Rebate Program (collectively, the Medicare Prescription Drug Inflation Rebate Program). CMS notably proposes to require covered entities to submit certain data associated with claims for covered Part D drugs billed to Medicare Part D and dispensed by the covered entity or its contractor(s), for which the covered entity receives a discount under the 340B Program, to the Medicare Part D Claims Data 340B Repository, effective January 1, 2027. CMS established the repository as a voluntary system in CY 2026 and is now proposing mandatory participation to support administration of the Medicare Prescription Drug Inflation Rebate Program.

Comments will be accepted through September 14, 2026.

The proposed rule is available here. The CMS press release is available here and the CMS fact sheet is available here. The MSSP fact sheet is available here. The QPP fact sheet is available here.

House Ways and Means Committee Advances Prior Authorization and Price Transparency Bills

On July 15, 2026, the House Committee on Ways and Means unanimously voted to advance the Improving Seniors’ Timely Access to Care Act of 2025 (H.R. 3514) to the House floor. The legislation would establish a standardized electronic prior authorization process for Medicare Advantage (MA) plans, require the Secretary of HHS to establish response timeframes for prior authorization requests, and increase public reporting on prior authorization practices and outcomes. The committee also advanced the Health Care Price Certainty for All Americans Act (H.R. 9645), which seeks to strengthen health care price transparency requirements and improve access to pricing information for patients, providers, employers, and policymakers. Among other provisions, the legislation would expand reporting and data-sharing requirements related to negotiated rates, patient cost-sharing responsibilities, and health care pricing trends. It would also direct multiple studies and reports on transparency implementation, interoperability, compliance, and the feasibility of incorporating quality information into transparency tools.

The Ways and Means Committee approved several other bills on a bipartisan basis that addressed Medicare payment rates for remote patient monitoring reimbursement (H.R. 3108), anesthesia services in rural hospitals (H.R. 9642), and long-term care in hospitals (H.R. 9468).

More information on this markup is available here.

Bipartisan Physicians Introduce Medicare Payment Reform and MIPS Overhaul Bill

On July 15, 2026, the chairs of the Republican and Democratic Doctors Caucus (Reps. John Joyce, M.D. (R-PA), Greg Murphy, M.D. (R-NC), and Kim Schrier, M.D. (D-WA)) introduced H.R. 9693, the Patients First Act. This legislation would revise provisions included in the Medicare Access and CHIP Reauthorization Act (MACRA) related to physician reimbursement. Specifically, this bill would tie the annual update to the Medicare PFS conversion factor with an inflationary measure (i.e., the Medicare Economic Index (MEI) minus one percentage point) and limit the upper and lower threshold by which the conversion factor can be adjusted on a year-to-year basis. It would also raise the budget neutrality threshold for offsetting increases to PFS spending from $20 million to $57.64 million and index this threshold to MEI every five years. Further, the proposal would freeze advanced alternative payment model (A-APM) participation thresholds for three years, establish a primary care hybrid payment pilot that reimburses primary care physicians on a per-member-per-month model, and require notice and comment requirements for all mandatory models developed by the CMS Innovation Center (CMMI).

The legislation would also replace MIPS with the Patient Outcome Improvement National Tabulation System (POINTS) beginning January 1, 2032. Under the new framework, CMS would establish a clinician-led Quality Reform Task Force to recommend quality, resource use, and care efficiency measures for use in the program. The bill would also revise the performance categories used to evaluate clinicians by adding a new care efficiency category focused on measures such as reductions in avoidable hospitalizations, reductions in medication burden when clinically appropriate, reductions in complications from chronic diseases, and referrals to the lowest-cost clinically appropriate settings. CMS would generally be required to include task force-recommended measures or publicly justify any decision not to do so.

Furthermore, this legislation would modify payment adjustments under MIPS and the future POINTS system. While the maximum negative payment adjustment would remain at nine percent through 2031, the legislation would reduce the maximum penalty to three percent in 2032, four percent in 2033, and five percent in 2034. The bill would also require CMS to provide quarterly feedback on certain claims-based performance measures beginning in 2032 and prohibit negative payment adjustments when CMS fails to provide required performance feedback to clinicians.

The full bill text is available here. A press release from the bill’s sponsors is available here. A section-by-section summary of the bill is available here.

Senate HELP Committee Reviews CDC Director and ASPR Nominees

On July 15, 2026, the Senate HELP Committee held a hearing to consider the nomination of Dr. Erica Schwartz to serve as Director of the CDC. Dr. Schwartz served in the U.S. Public Health Service Commissioned Corps and as Deputy Surgeon General from January 2019 to April 2021. Questioning focused on whether Dr. Schwartz would maintain the CDC’s scientific independence and resist political interference in vaccine policy. Chairman Bill Cassidy (R-LA) specifically asked whether Dr. Schwartz would challenge HHS Secretary Robert F. Kennedy if he prompted her to engage in actions unsupported by science and ended the hearing after voicing his concerns about her nomination. Of note, Dr. Schwartz's written testimony stressed a commitment to restoring trust in public health through transparency and evidence-based decision-making, stating that she would “always stand on science and speak the truth” if confirmed as CDC Director.

The committee also considered the nomination of Mr. Sean Kaufman to be Assistant Secretary for Preparedness and Response (ASPR) for HHS. Mr. Kaufman has over three decades of public health experience, including supporting response efforts following the September 11 terrorist attacks and the 2001 anthrax attacks, as well as outbreaks of SARS and the H1N1 influenza pandemic.

More information on this hearing is available here.

DHS Expands Public Charge Review for Immigrants Receiving Public Benefits

On June 16, 2026, the Department of Homeland Security (DHS) issued a final rule rescinding the 2022 Public Charge Ground of Inadmissibility regulations and restoring broader discretion for immigration officers when evaluating whether an individual is likely to become a “public charge” under the Immigration and Nationality Act. Under the statute, a person applying for a visa, admission to the United States, or adjustment to lawful permanent resident status may be found inadmissible if immigration officials determine that the individual is likely to become primarily dependent on government support.

The rule eliminates the 2022 regulatory framework, which limited public charge considerations largely to cash assistance for income maintenance and long-term institutionalization at government expense, and removes regulatory definitions and factors that previously guided these determinations. Effective September 18, 2026, DHS officers may consider an applicant’s receipt of any means-tested public benefits, including Medicaid, alongside statutory factors such as age, health, family status, financial resources, education, and skills as part of a broader, case-by-case assessment. DHS states that the change is intended to give officers greater flexibility to evaluate an applicant’s overall likelihood of depending on public resources and aligns public charge determinations with congressional policies promoting immigrant self-sufficiency. The policy is expected to increase scrutiny of Medicaid utilization in immigration adjudications and may lead some eligible immigrants and mixed-status families to forgo or disenroll from health coverage due to concerns about potential immigration consequences.

The rule will take effect on September 18, 2026.

The final rule is available here. A press release is available here.

DHS Ends Duration of Status Policy for International Students and Exchange Visitors

On July 16, 2026, DHS issued a final rule eliminating the “duration of status” (D/S) framework for F-1 students and J-1 exchange visitors. Under the prior policy, these individuals generally could remain in the United States for the duration of their academic or exchange program without obtaining periodic extensions from U.S. Citizenship and Immigration Services (USCIS). The final rule replaces D/S with admission for a fixed period of stay tied to the length of the authorized program, up to a maximum of four years. Students and exchange visitors whose programs extend beyond four years generally must apply to USCIS for an Extension of Stay (EOS) to remain in the United States. Current F-1 and J-1 nonimmigrants already present in D/S status will be subject to a transition period that generally allows them to remain in D/S through the end of their current program or up to four years after the rule takes effect, whichever comes first. The rule also reduces the grace period for F-1 students following completion of a course of study or authorized post-completion practical training from 60 days to 30 days.

The rule will take effect on September 15, 2026.

The final rule is available here. The DHS press release is available here.

House Republicans Advance FY 2027 Budget Resolution for Third Reconciliation Package

On July 16, 2026, House Republican leadership advanced a Fiscal Year (FY) 2027 budget resolution framework for a third reconciliation package (Reconciliation 3.0) totaling $95 billion in spending. The package would include: $60 billion in defense funding; $13 billion allocated to intelligence programs; $12 billion in farm and agriculture aid; and $10 billion for the House Administration Committee, which oversees election administration policy, to implement provisions related to H.R. 7296, the SAVE America Act. The resolution does not provide reconciliation instructions to the House Energy and Commerce Committee or the House Ways and Means Committee, which hold jurisdiction over health policy in the House.

House Republican leadership is aiming for floor consideration of the resolution prior to the August recess.

The full text of the budget resolution framework is available here. More information on this markup is available here.

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