Here are three recent federal healthcare updates to know:
DOGE access halted by federal judge: DOGE requested access to CMS systems, which handle more than $1 trillion in annual payments, in early February. The request is part of Mr. Musk’s broader plan to cut federal spending by $1 trillion, with potential cuts to Medicaid.
The attorneys general, led by New York Attorney General Letitia James, argued that DOGE does not have the authority to access the information which “could allow Mr. Musk and his team to block federal funds to states and programs providing healthcare, childcare and other critical services” Ms. James said in a Feb. 7 news release.
U.S. District Judge Paul Engelmayer said that the attorneys general had presented a strong case that demonstrated validity and potential harm from DOGE accessing the information at this stage. On Feb. 9, President Donald Trump’s Justice Department then sought to overturn Mr. Engelmayer’s block of DOGE, The Hill reported Feb. 10.
“If a judge tried to tell a general how to conduct a military operation, that would be illegal,” Vice President JD Vance said in a Feb. 9 X post. “If a judge tried to command the attorney general in how to use her discretion as a prosecutor, that’s also illegal. Judges aren’t allowed to control the executive’s legitimate power.”
Medical schools denounce research cuts: The Association of American Medical Colleges – which represents medical schools and around 500 academic health systems — is urging the Trump administration to rescind a decision to significantly limit the funding research institutions receive for indirect costs for research projects. On Feb. 8, the National Institutes of Health’s Office of Policy for Extramural Research Administration posted a memo stating it will limit indirect funding for research projects to 15%. The agency estimated the move will save $4 billion in federal costs annually.
When institutions are granted federal funds for a medical research project, they also receive a percentage for indirect costs, which refer to administrative costs, such as lab operations and supplies. In its memo, the NIH said the average indirect cost rate institutions receive has averaged between 27% and 28% over the years, though some organizations have received a higher percentage. Harvard, Yale and Johns Hopkins each previously received more than 60% in indirect cost funding for medical research projects, according to the NIH.
The AAMC said the decision,”will diminish the nation’s research capacity, slowing scientific progress and depriving patients, families, and communities across the country of new treatments, diagnostics and preventive interventions.”
“Every American has benefited from NIH-supported medical research conducted at medical schools, academic health systems and teaching hospitals nationwide. Every American will be harmed by the undermining of this long-standing partnership between academic institutions and the federal government.”
In a statement, the Children’s Hospital Association, which represents more than 200 children’s hospitals across the country, said the new indirect cost guidelines, “will limit access to effective heatlhcare treatments and diagnostics for patients, and if implemented as currently drafted, will undermine our medical research capacity and put the nation’s global health competitiveness at risk.”
HHS secretary confirmation vote: The Senate is expected to vote on Robert Kennedy Jr.’s nomination for HHS secretary this week. Mr. Kennedy faced two hearings, each lasting more than three hours, on Jan. 29 and Jan. 30 concerning his views on topics like vaccines, abortion, Medicare and Medicaid, rural healthcare and chronic disease.