Federal Health Policy Updates for the Week of January 27, 2025
Federal Health Policy Updates from Duke Health Government Relations
January 31, 2025
The Duke Health federal government relations team traveled to Raleigh for the announcement of the new NC Children’s hospital.
The Rundown
President Trump’s executive orders and actions continue to implement policy changes
HHS Secretary nominee grilled at two confirmation hearings
What’s up NC delegation?
From our desks
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Executive Orders continue
This week, President Trump continued his use of executive actions, resulting in disruption, concern, and confusion on the ground for academic medical centers. Late Monday, the Office of Management and Budget (OMB) released a memo using strong language to justify a temporary pause on federal grant funding. According to the memo, a pause would “provide the Administration time to review agency programs and determine the best uses of the funding for those programs consistent with the law and the President’s priorities.” As confusion mounted about the impact of the funding freeze, and which programs were included, court challenges began and the memo was rescinded on Wednesday. This injunction was then followed by a statement from the administration’s Press Secretary that the rescission was "NOT a rescission of the federal funding freeze" but "simply a rescission of the OMB memo,” which led to more questions about the federal funding pause. Our team is continuing to monitor information coming out of DC and working internally with health system and university leadership to analyze the impacts of the executive orders.
RFK Jr. is the focus of two committee hearings
The Senate continued its focus on confirming President Trump’s cabinet nominees this week, with Health and Human Services (HHS) Secretary nominee Robert F. Kennedy, Jr. facing questions during two separate hearings. The first hearing occurred on Wednesday with the Senate Finance Committee, which has primary jurisdiction over the nomination of HHS nominees. In what can only be described as a contentious hearing, Democrats on the Committee criticized the nominee’s past statements about vaccines, infectious disease, and other health issues. Republicans on the Committee meanwhile seemed generally supportive. Senator Thom Tillis (R-NC), who serves on the Committee, stated that he believed Kennedy was well-prepared and applauded his positions on the Supplemental Nutrition Assistance Program (SNAP).
On Thursday, the Senate Health, Education, Labor and Pensions (HELP) Committee met with Kennedy for another contentious day of questioning. Chairman Bill Cassidy (R-LA), a physician who also serves on the Finance Committee, used his opening statement to express concern with the nominee’s past skepticism of vaccines. During his questioning, Chairman Cassidy repeatedly pressed Kennedy about whether he would discourage vaccination at HHS or make unfounded claims about vaccines' risks. Similarly to the Finance Committee, HELP Committee Democrats were critical of the nominee, while Committee Republicans were generally supportive. At the close of the hearing, Chairman Cassidy reaffirmed that he remains undecided on whether to support Kennedy’s nomination.
The Senate Finance Committee will next schedule an executive session meeting to vote on the nominee.
What’s up NC delegation?
Senator Ted Budd (R-NC) was appointed to the Senate Intelligence Committee.
Rep. Don Davis (D-NC-01) was appointed the ranking member of the House Agriculture Committee's Subcommittee on Commodity Markets, Digital Assets, and Rural Development. He will also serve as the vice ranking member of the House Armed Services Committee.
Rep. Virginia Foxx (R-NC-05), Rep. Chuck Edwards (R-NC-11), and Rep. Tim Moore (R-NC-14) were appointed to the new Council to Assess the Federal Emergency Management Agency (FEMA). Created by an Executive Order, the council is charged with reviewing FEMA and recommending changes in the nation’s disaster response policies.
Rep. David Rouzer (R-NC-07) was named Chairman of the House Committee on Transportation & Infrastructure’s Subcommittee on Highways and Transit.
From our desks
Our team had the opportunity to attend the announcement of the new NC Children’s hospital earlier this week. NC Children’s will be the state’s first freestanding hospital dedicated to caring for kids, and will feature a 500-bed children’s hospital, a children’s outpatient care center, and a children’s behavioral health center. A number of federal, state, and local officials were in attendance at the announcement.
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