Policy Update: State of the Union Address, Budget Updates

President Biden’s State of the Union Address

• State of the Union Transcript
• State of the Union Video
• Post-State of the Union White House Briefings
  • The Biden-Harris Administration’s Economic Agenda

FEATURING:  Secretary Pete Buttigieg, U.S. Department of Transportation and Senior Administration Officials

WHEN: Monday, March 11 at 10:30am EST

WHERE: https://pitc.zoomgov.com/webinar/register/WN_pRjrPzUKT6CC3AO-dlaI0w

• FY25 Budget Briefing

FEATURING: Stephen Benjamin, Senior Advisor to the President and Director of the Office of Public Engagement, and Shalanda Young, Director of the Office of Management and Budget

WHEN: Monday, March 11th at 2:30 PM EST

WHERE: https://pitc.zoomgov.com/webinar/register/WN_xvCltC8CTwGF02kCYpcJNg

• The Biden-Harris Administration’s Unity Agenda

FEATURING: Secretary Xavier Becerra, U.S. Department of Health and Human Services, Emmy Ruiz, Assistant to the President and Director of Political Strategy and Outreach,

and Senior Administration Officials

WHEN: Monday, March 11th at 4:00 PM EST

WHERE: https://pitc.zoomgov.com/webinar/register/WN_uzgE00o2T0C3BCToVzNppA

• The Biden-Harris Administration’s Commitment to Protecting Rights, Democracy, & Freedoms

FEATURING: Anita Dunn, Senior Advisor to the President, Jennifer Klein, Co-Chair and Executive Director of the White House Gender Policy Council, Natalie Quillian, Deputy Chief of Staff, and Senior Administration Officials

WHEN: Tuesday, March 12th at 3:30 PM EST 

WHERE: https://pitc.zoomgov.com/webinar/register/WN_tGy3EU8MSV6OTX8ZreViJA

• The Biden Administration released a fact sheet on new steps to lower prescription drug and health care costs, expand access to health care, and protect consumers. After decades of opposition, President Biden enacted a law that takes on Big Pharma and gives Medicare the power to negotiate drug prices. President Biden’s Inflation Reduction Act will save millions of seniors money on some of the costliest prescription drugs on the market. To ensure that quality health care is widely accessible, he wants to continue keeping insurance premiums low, close the Medicaid coverage gap, ensure children remain covered, close research gaps in Women’s Health Research, make home care more available and affordable, and ensure access to mental health care. By preventing surprise medical bills and cracking down on junk insurance, he ensures Americans will have access to the insurance coverage that best meets their needs. President Biden promises that America’s seniors will be taken care of by ensuring access to Medicare and setting higher standards that protect seniors’ health and dignity.  

• During the address, President Biden announced a new initiative to support women’s health research at NIH. The administration will be requesting $12 billion over a period of years to support a new fund to advance an interdisciplinary research agenda and create a new nationwide network of research centers of excellence and innovation in women’s health. Some are comparing it to what was done with the BRAIN Initiative. We expect more details will be provided in the forthcoming FY 2025 budget request.  

Appropriations and Budget Updates

• The President’s Fiscal Year 2025 Budget is forecasted to be released Monday, March 11. On Tuesday, March 12, the Senate Committee on the Budget will hold a hearing with the Office of Management and Budget Director Shalanda D. Young. Young will present the President’s Fiscal Year 2025 Budget Proposal.

• The House voted 339-85 to advance a $460 billion funding package on Wednesday, again averting a partial government shutdown. The measure funds departments and agencies under the Agriculture/FDA; Military Construction/VA; Commerce, Justice, Science; Interior/Environment; Energy & Water; and Transportation/HUD spending bills through the remainder of FY 2024. The Senate is expected to pass the legislation. Funding for the remaining six FY 2024 bills, including Labor-HHS, expires on March 22 and negotiations on that package are ongoing.

The House vote relied heavily on Democratic support due to conservative opposition. House conservatives criticize the continuous short-term extensions and spending negotiations. Speaker Mike Johnson faces discontent from within his party, but potential consequences remain uncertain.

Hill Updates

• Representatives Ron Wyden and Frank Pallone Jr. sent a letter to the Centers for Medicaid and Medicare Services (CMS) urging CMS to ensure that states fulfill their commitments to comply with federal Medicaid and Children’s Health Insurance Program (CHIP) eligibility and enrollment requirements. The end of COVID-19 pandemic protections has revealed systemic problems in many states’ eligibility and enrollment systems, leaving millions of low-income Americans, including children, without health coverage.

Bipartisan groups in both the House and Senate are aiming to reform Medicare reimbursement rates (behind paywall) for doctors by the end of the year. They seek to eliminate the annual process where the Centers for Medicare and Medicaid Services (CMS) propose pay cuts based on a complex formula. Lawmakers agreed to a tentative deal over the weekend to end most of a 3.4 percent cut that took effect on Jan. 1, but without any change to the formula. The House Ways and Means Committee is considering a bill by Rep. Greg Murphy (R-N.C.) to give CMS more flexibility in rate setting, improve payment predictability, and update cost calculations. Democrats are also showing interest in the bill. According to staff, CMS has conducted a technical evaluation of the bill. However, a Congressional Budget Office assessment is still required to assure members that the cost is within practical limits.

In the Senate, a bipartisan working group is gathering input from stakeholders to draft legislation by summer’s end, with a focus on low-cost or budget-neutral solutions that promote value-based care.

·       Federal appeals court judges seem inclined to uphold a lower court ruling that would eliminate an Obamacare requirement ensuring millions receive preventive services without cost-sharing. The employers argued that the requirement to cover the HIV prevention drug PrEP violated their religious rights. The Biden administration sought to limit the ruling’s scope to the plaintiffs, but two of the three judges, appointed by former President Donald Trump, expressed skepticism, suggesting if the mandate is invalid, it should apply nationwide. Department of Justice attorney Daniel Aguilar argued against wiping out the mandate, emphasizing its life-saving importance for millions, but plaintiffs’ lawyer Jonathan Mitchell contended the mandate is unconstitutional due to irregular appointments to the U.S. Preventive Services Task Force. The case, brought by conservative employers in Texas, is likely to be appealed regardless of the Fifth Circuit’s decision, potentially reaching the Supreme Court.

Administration Updates 

• President Biden is taking significant action to lower costs for Americans by combatting unfair corporate practices and promoting competition. He has established a Strike Force to address unfair and illegal pricing, targeting sectors like prescription drugs, healthcare, food, housing, and financial services. The Administration also announced new measures to reduce credit card late fees, eliminate junk fees, address bulk billing practices, and support small farmers. These actions build upon efforts by the Biden Administration to promote competition, and lower costs across various sectors such as finance, transportation, healthcare, and communications. The Administration is committed to institutionalizing competition and improving access in these industries.

• The National Institute of Allergy and Infectious Diseases (NIAID) is in the process of revising its Strategic Plan, which will shape NIAID’s key focuses for the next five years. With an eye toward the future, the Institute has issued a Request for Information (RFI) to solicit public feedback.