G2G Bio Bulletin – August 2, 2026
An Update on FY 2027 Appropriations
A short while ago, Senate Appropriations Chair Susan Collins (R-ME) and Vice Chair Patty Murray (D-WA) released text of a continuing resolution (CR) that they negotiated to fund the government at FY 2026 levels till December 11. This CR differs from the one passed by the House, in that it includes extensions of certain programs and is more circumspect on additional military and immigration enforcement spending.
Most notably the CR includes verbiage that prevents the Office of Management and Budget (OMB)’s proposed rule regarding federal financial assistance, including all grants, from taking effect on October 1. It seeks to delay the earliest potential start date for implementation to December 11.
Updates from Washington
Congress: The House was out of session this past week.
- FY 2027 Appropriations: Senate appropriators are working on a bipartisan continuing resolution (CR) to fund the government until December and avert a shutdown at the start of FY 2027 on October 1. This effort is in response to the House passing a CR mostly on party lines last week.
- Committee Hearings, Legislation and Other Activity:
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Nomination Votes: The Senate Health Education Labor & Pensions (HELP) Committee advanced the nominations of Dr. Erica Schwartz and Sean Kaufman to be CDC Director and the assistant secretary for preparedness and response (ASPR), respectively. All committee Republicans voted in favor of both nominees, and all Democrats opposed both, with the exception of Sen. Tim Kaine (D-Va), who endorsed Dr. Schwartz. Both nominees now advance to a vote by the entire Senate.
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COVID-19: The Senate Homeland Security Committee on Wednesday convened a hearing featuring Dr. Anthony Fauci as the witness. Chair Rand Paul (R-KY) and other Republicans repeatedly lambasted Dr. Fauci on allegations about his conduct during the pandemic. Aside from noting he was being subjected to a ‘campaign of slander’ in his opening statement, Dr. Fauci declined to comment in response to queries, citing his Fifth Amendment prerogatives.
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Democratic Healthcare Policy: Senate Finance Committee Democrats led by Ranking Member Ron Wyden (D-OR) released a Request for Information (RFI) on proposals they may pursue when the party next has a governing trifecta. Comments are due by October 2. Key highlights of the document include:
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Expanding rate review authorities to ensure that insurance companies can justify cost increases
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Reforming deductibles and cost-sharing requirements
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Providing all Americans with a Medicare-type coverage choice
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Establishing and codifying standardized benefits and plan designs
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Eliminating financial incentives that encourage vertical integration
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Addressing anticompetitive practices by third-party administrators and other middlemen
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Administration & Agencies:
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CMS:
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The agency will end a subsidy program that paid insurance companies to stabilize Medicare Part D premiums, following the passage and implementation of the IRA. About 75% of beneficiaries will see monthly premium increases of up to $20 per month.
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The final rule on the Inpatient Prospective Payment System (IPPS) for FY 2027 has been published, confirming a 2.3% increase ($2 B) in payments to hospitals.
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A federal judge ruled against a coalition of 26 states seeking to delay the implementation of tighter Medicaid work requirements as outlined in OBBBA.
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340B
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Rebate Model Pilot: HHS has released a revised proposal to pilot a shift of the 340B drug discount program to a rebate model, that would require covered entities to initially purchase relevant medicines at market price. The new proposal encompasses drugs in the first two rounds of the Medicare Drug Price Negotiation Program, which is wider in scope than the original proposal. The new proposal also includes mechanisms for providers to challenge denied claims and potential removal of manufacturers with claim denial rates of 5% and higher. Manufacturers seeking to participate have until August 24 to submit implementation plans, with the pilot set to commence from January 1. This measure on 340B follows a recently proposed rule by which the Administration seeks to cut reimbursement by 33.4% to participating providers, based on survey data that critics allege is non-representative.
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- White House, Other HHS Agencies & Departments:
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The Administration has announced a policy that prohibits federal support for dangerous gain of function (DGOF) research conducted in the US and abroad, establishes an independent review for certain high-risk life sciences research, and restricts federal funding for research conducted in countries or institutions that lack appropriate biosafety, biosecurity, and oversight standards.
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From September 15, the duration of non-immigrant visas used by foreign students and academics will be capped for a fixed period of four years, with extensions granted only after additional vetting. Individuals currently in the country will not need an extension if their program concludes by September 2030. The measure curbs the 'duration of status’ provision used by individuals in longer training programs. Critics note that this would disproportionately impact those pursuing doctoral and postdoctoral programs in the sciences, and would harm the US’s ability to attract top talent.
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