Robert F. Kennedy Jr. has officially taken on the role of Secretary of Health and Human Services (HHS), following a closely contested Senate vote that concluded at 52 to 48.
The Democratic senators rallied together in opposition, while Senator Mitch McConnell, the lone Republican dissenting, expressed worries about Kennedy’s tendency to spread conspiracy theories, which he believes disqualifies him for this significant position.
Coinciding with this development, President Trump enacted an executive order to initiate the “Make America Healthy Again Commission,” hinting at forthcoming shifts in healthcare policy during Kennedy’s leadership.
In tandem with these changes, the Senate is gearing up to assess Mehmet Oz, MD’s nomination to oversee the Centers for Medicare and Medicaid Services (CMS), with procedural hearings anticipated by March.
Progress in Budget Resolutions by Committees
Both the House and Senate are diligently working to finalize a unified budget resolution, an important milestone in the reconciliation process.
In recent action, the Senate Budget Committee advanced a proposal that seeks to assemble a more temperate reconciliation package focusing on immigration, defense, and energy initiatives.
This proposed structure holds particular importance for healthcare stakeholders, as it could potentially accommodate health programs necessary for financing the plan.
Senate Finance Chairman Mike Crapo noted that his committee could look into revoking a Biden administration regulation concerning nursing home staffing, which could result in an estimated $22 billion in savings.
Meanwhile, the House Budget Committee is pursuing a different strategy.
On February 13, the committee moved forward with its resolution aimed at combining immigration, energy, defense, and extensions of tax cuts into a single, comprehensive reconciliation bill.
Unlike the Senate’s approach, which favors a two-bill plan, the House bill empowers the Energy and Commerce Committee to identify at least $880 billion in savings, which may include reforms related to Medicaid.
The resolution passed predominantly along party lines, incorporating two amendments from Republican members aimed at securing Freedom Caucus backing by restricting tax cuts unless substantial spending reductions are made.
Senator Tina Smith Opts Out of Reelection
Senator Tina Smith (D-MN), who has played a crucial role on both the Senate Finance and HELP Committees, announced she will not seek reelection.
This decision follows a similar retirement declaration by Senator Gary Peters (D-MI).
With both pivotal Democratic seats up for grabs in the upcoming 2026 midterms, both parties now face the challenge of finding strong candidates for these critical races.
In a recent hearing led by the House Ways & Means Health Subcommittee, experts shared strategies for improving public health through wellness initiatives and early detection programs.
Emphasizing the need for adaptable healthcare options, discussions highlighted the potential benefits of health savings accounts tailored for individual entrepreneurs.
While Democratic representatives critiqued recent NIH guidelines limiting indirect costs and their implications for future medical research, Republican lawmakers pointed to the financial strains chronic health issues impose on the healthcare system.
House Oversight Healthcare Subcommittee Reviews Welfare Programs
The House Oversight Healthcare Subcommittee convened to explore differing perspectives on welfare programs, including Medicaid, housing assistance, and nutritional support.
Republican members raised alarms about program expansion, citing concerns about potential fraud and abuse within Medicaid.
They proposed implementing block grants and work requirements as possible remedies.
In contrast, Democrats expressed worries that additional barriers could hinder access to benefits, sharing personal stories that illustrated the vital role these programs play.
The inaugural hearing of the newly formed DOGE Subcommittee took place under the guidance of Representative Green (R-GA) and Ranking Member Stansbury (D-NM).
Expert testimonies focused on the prevalence of improper payments and fraud within federal assistance programs, particularly concerning Medicaid and Medicare.
Republicans insisted on the necessity of tackling inefficiencies, while Democrats cautioned against the harms that proposed cutbacks could inflict on the most vulnerable populations.
During a recent session of the Senate Aging Committee, discussions revolved around the increasing rates of chronic illnesses and the significance of proactive health strategies, such as proper nutrition and regular exercise.
Democrats noted the critical influence of social determinants on health, advocating for expanded access to affordable healthcare and stable housing options.
Meanwhile, Republican members called attention to the reactive nature of the current healthcare model, arguing for a transition towards preventative care measures.
President Trump has put forth several nominees for pivotal roles within the Department of Health and Human Services.
These nominees include Gary Andres, a former staff director for major House healthcare committees, and Gustav Chiarello III, an antitrust attorney, both in pursuit of assistant secretary roles.
State Senator Michael Stuart from West Virginia has been nominated to serve as the general counsel for HHS.
After withdrawing his original nominee, Chad Chronister, Trump has also put forward Terry Cole, Virginia’s Secretary of Public Safety, to lead the Drug Enforcement Administration.
Each appointment is subject to Senate confirmation.
On February 7, the National Institutes of Health (NIH) released new guidelines limiting indirect cost rates for awardees to 15%.
These costs, which typically include overhead and administrative expenses, drew scrutiny as the NIH based this decision on past rates averaging around 27%, with some reports indicating figures up to 60%.
The new policy faced significant backlash from numerous stakeholders, including academic institutions and bipartisan lawmakers.
As the policy was poised to take effect on February 10, a group of 22 Democratic attorneys general initiated a lawsuit contesting the NIH’s decision, citing infringement of a 2018 legislative provision that safeguards existing indirect cost rates.
A federal judge granted a temporary injunction to halt the policy for the involved states, and the AAMC later joined the lawsuit.
On February 11, the judge expanded the injunction nationwide, reflecting the ongoing contentious nature of the issue, with potential repercussions in future budget discussions.
President Trump has issued an executive order instructing federal agencies to implement a workforce optimization strategy, which limits new hiring to one employee for every four that depart.
Agency leaders must devise hiring plans in accordance with this directive, ensuring collaboration with DOGE team leaders.
If a DOGE leader opts not to fill a vacancy, agency heads may only override this decision under specific conditions.
Additionally, the order anticipates significant cuts to agency workforces, particularly targeting positions with no statutory mandates, such as those linked to diversity, equity, and inclusion.
Consequently, agency leaders must provide reports outlining the legal framework supporting their functions.
Several lawsuits are actively challenging various initiatives introduced by the Trump administration, including executive orders and regulatory changes.
Beyond the NIH indirect cost guidelines, cases have emerged related to health agency information accessibility, funding freezes, and federal employee buyouts.
A federal court has ruled that specific health data must be reinstated on agency websites, while other decisions have temporarily blocked guidance from OMB aimed at freezing funding.
Further legal action has indicated noncompliance by the administration with earlier court directives regarding employee buyouts and a controversial executive order on gender-affirming care.
- The GAO has published a report detailing Medicaid enrollment for those formerly in foster care.
- Democratic healthcare leaders are calling for an investigation by the OIG into DOGE’s access to sensitive health data.
- Republicans in the Energy & Commerce Committee have formed a working group dedicated to data privacy.
- CMS has announced funding cuts for Marketplace Navigators.
Next week, the House will enter a recess, while the Senate will reconvene following the President’s Day holiday on Monday.
During this period, the Senate will continue confirming various cabinet nominees and may also tackle the budget resolution advanced by the Senate Budget Committee.
Upcoming meetings include a nomination hearing for Dan Bishop, proposed for Deputy Director of OMB, in the Senate Homeland Security & Governmental Affairs Committee, as well as a markup of the HALT Fentanyl Act by the Senate Judiciary Committee.
Source: Natlawreview