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Week Ahead: Budget Battles and a Director Too

Health and Human Services (HHS) Secretary Robert F. Kennedy, Jr. is sure getting his steps in as he begins his second week making the rounds on Capitol Hill defending the president’s FY 27 budget request for HHS. Also, Centers for Disease Control and Prevention (CDC) may be finally getting a full-time director. So, let’s get into it. Welcome to the Week Ahead!

The Administration

President Trump announced his new pick for CDC Director on Truth Social just as HHS Sec. Kennedy was facing congressional questions about the prolonged vacancy. Dr. Erica Schwartz seems to be a departure from some of the more unconventional candidates nominated to lead the nation’s health agencies during President Trump’s second term. Unlike nominees such as RFK Jr. and Dr. Oz, Dr. Schawrtz, has experience serving in public health roles, such as Deputy Surgeon General during President Trump’s first administration and Chief Medical Officer of the U.S. Coast Guard. While the American Public Health Association is supporting her, some of the Make America Health Again (MAHA) crowd are skeptical because she has not publicly questioned vaccines. The tug of war between someone who can appease both the MAHA base and Senators like Senate HELP Committee Chair Bill Cassidy (R-LA), who want a more traditional pick, is clearly a pain point for the administration.

Health care fraud also continues to be a focus for the administration. According to recent comments made by Acting Attorney General Todd Blanche, health care fraud is seen as low-hanging fruit for the Department of Justice’s new anti-fraud unit. Blanche said the unit will be focusing on ghost patients for the first few months.

In another HHS appointment, Casey Mulligan is being brought into the Trump administration as the new “Affordability Czar.”  Mulligan will advise Sec. Kennedy and other HHS leaders on policy development to make health care more affordable, including cost-benefit analysis of regulation, econometric modeling, and program evaluation of major expenditures. This appointment coincides with a statement by Sec. Kennedy that insurance companies are making hand money, “hand over fist.” Both the appointment and the comments show the administration is interested in addressing health care affordability.

The Senate

More than half of the Senate will have the chance to question Sec. Kennedy, as he appears before the Senate Appropriations Labor-HHS Subcommittee, the Senate Finance Committee, and the Senate HELP Committee to explain the president’s FY 27 budget request for HHS. If the questioning is anything like last week’s, Democrats are going to use the opportunity to press Sec. Kennedy on his vaccine policies, and proposals to cut research funding and HHS staffing.

While we expect Republicans to praise the administration’s efforts to combat fraud, waste, and abuse, we are watching how key GOP senators handle some touchy subjects. For example, Sen. Bill Cassidy (R-LA) will likely . To do this, he may highlight areas of his health care agenda that align with MAHA, such as expanding access to nutritional foods and addressing chronic disease.  However, he has also been a strong supporter of vaccines, and he may feel duty-bound to raise those concerns. Other Republicans, like Sens. Susan Collins (R-ME) and Lisa Murkowski (R-AK), have also expressed concerns about some of Kennedy’s actions regarding vaccine changes, and Sen. Shelly Moore Capito (R-WV) has previously pushed back on funding cuts to the National Institutes of Health (NIH).

On a Reconciliation 2.0, Senate Majority Leader John Thune (R-SD) is trying to get Senate Republicans to agree on a deal. Leader Thune is aiming to keep the bill focused on funding for Immigration and Customs Enforcement (ICE) and Customs and Border Patrol (CBP), but some Republicans have challenged this strategy. For example, Sen. Rick Scott (R-FL) has argued that the funding in the package needs to be offset. Although it has not been specifically mentioned, these savings could come through changes to Medicaid. Additionally, Sen. John Kennedy (R-LA) has argued the package needs to include a provision mandating voter ID.

The House

Likewise, Speaker of the House Mike Johnson (R-LA-4) is navigating his own intra-caucus dynamics on Reconciliation 2.0, caught between House Freedom Caucus members calling for funding the entirety of the Department of Homeland Security (DHS) – not just ICE and CBP – and some like Rep. Eric Burlison (R-MO-7) wanting to include health care reforms in the legislative package. Further complicating vote-getting is the House’s failure to pass FISA reauthorization last week, which will push reconciliation discussions further into May as the majority deals with renewing the government spy law.

Meanwhile, House Energy and Commerce Health Subcommittee Ranking Member Diana DeGette (D-CO-1) has said she will be pressing the Secretary Kennedy when he appears before the Committee this week on how he plans to stabilize federal agencies following the loss of experienced staff, particularly those with specialized experience, and will call for Democrats to refocus on stabilizing HHS agencies, including the NIH and the Food and Drug Administration.

Pharmacy Benefit Managers (PBMs) are also going to catch some heat as the House Education and Workforce HELP Subcommittee holds a hearing to discuss H.R. 7895, the PBM Kickback Prohibition Act, which would eliminate payments to PBMs from health insurers.

The House Majority Leader’s weekly schedule also lists some health care legislation which could be considered this week. This includes bills to reauthorize the First Responder Network Authority (H.R7386), Health Resources and Services Administration (HRSA) grants that support rural health networks and providers (H.R.2493) and telehealth networks and expansion programs (H.R.3419). It also includes H.R.2319, a bill to conduct an interagency review of research on lung cancer in women and underserved communities.

There You Have It

The Stanley Cup playoffs have begun. Do you have any thoughts on which team will be able to take it all the way and become the 2026 Champions? Let us know. Make it a great week!

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