Legislative Resilience and Regulatory Reform in the FY2026 HHS Appropriation & Minnesota Impact

This presentation analyzes the strategic and fiscal implications of the FY2026 Consolidated Appropriations Act (H.R. 7148), which establishes a $116.8 billion discretionary budget for the Department of Health and Human Services. Diverging significantly from the Administration’s proposed austerity measures, Congress rejected executive proposals to reduce National Institutes of Health (NIH) funding by 40 percent and eliminate the Agency for Healthcare Research and Quality (AHRQ), instead prioritizing the structural stability of federal research and public health infrastructure. Beyond fiscal preservation, the session evaluates transformative market reforms, most notably prohibiting pharmacy benefit managers (PBMs) from linking remuneration to drug prices in Medicare Part D and mandating "reasonable and relevant" contract terms for network pharmacies. This briefing examines these regulatory shifts alongside critical continuity measures, including the extension of Medicare telehealth flexibilities through 2027, the prolonging of the Acute Hospital Care at Home waiver through 2030, and the delay of Medicaid Disproportionate Share Hospital (DSH) reductions to FY2028. We conclude that while the Act secures near-term operational resilience for safety-net providers, the codified transparency protocols signal a permanent shift toward intensified federal oversight of healthcare intermediaries. We will then conclude with the impact of these provisions to Minnesota.

Presenter: Dr. John Pournoor, Government Analytica

This presentation will not be recorded. A report and slides will be available for download to those who register and shared in the MPHA member newsletter.