On February 3, 2026, a comprehensive fiscal year (FY) 2026 appropriations package advanced through the US House of Representatives, finishing the legislative process for five of the six remaining appropriations bills. Congress extended temporary funding for the sole outstanding bill, the US Department of Homeland Security, through February 13, 2026, to allow congressional leaders and the White House time to finalize an agreement. The comprehensive package includes funding for the US Department of Health and Human Services and addresses expiring healthcare programs and other health policy priorities.
Key health-related provisions in the FY 2026 minibus
- The package provides extensions ranging from one to five years for various healthcare programs that expired on January 30, 2026.
- The package includes Medicaid policies related to out-of-state provider enrollment, the age limit for individuals with disabilities to work and continue to receive Medicaid benefits, home- and community-based services for active duty military, and the Medicaid shortfall definition.
- The package makes several Medicare policy updates related to the Medicare Diabetes Prevention Program, Part D cost sharing, the Medicare Advantage provider directory, multi-cancer early detection screening tests, pharmacy benefit manager (PBM) reform, and clinical laboratory tests.
- The package includes annual reporting and rebate pass-through requirements for commercial PBMs.
- The package authorizes several public health initiatives related to maternal mortality, the Organ Procurement and Transplantation Network, sickle cell disease, lifespan respite care, preterm births, and provider mental health.
- The package grants the US Food and Drug Administration new authority to require and enforce policies designed to improve pediatric cancer research and treatment.
- The package’s spending provisions are paid for through an extension of the hospice cap and Medicare sequestration; use of a portion of the Medicare Improvement Fund; and policies related to site neutrality, the Medicare home infusion benefit, and transparency in generic drug applications.
A full summary of the health package is available to McDermott+ clients and McDermott+ Insider subscribers. Please contact your relationship consultant with questions. For inquiries, please contact info@mcdermottplus.com.
