Nominations

By a vote of 52-48, the Senate confirmed Robert F. Kennedy Jr. as HHS Secretary of the U.S. Department of Health and Human Services on Thursday.

FY2025 Appropriations

Another week goes by without a topline funding agreement between the House and the Senate regarding FY2025 funding. As a reminder, we are currently operating under a Continuing Resolution (CR) until March 14 for this fiscal year, which ends September 30.  Rumors of a CR for the remainder of the fiscal year have been circulating, along with statements that top appropriators in Congress are not yet ready to give up on working on 12 individual appropriations bills. The longer this discussion goes into this year without a resolution increases the likelihood of a CR for the remainder of the fiscal year, which would keep funding close to current levels.

Congressional Budget Resolutions

Both the House and the Senate passed their respective Budget Resolutions out of committee this week. As a reminder, a budget resolution is the first step in enacting a reconciliation bill which can reduce spending through a process that only requires 50 votes in the Senate (compared to the usual 60 votes). It is through this process that the GOP hopes to enact items from President Trump’s agenda.

The House’s plan has all issues in one bill while the Senate is taking a “two-bill” strategy, with this first bill focused on border control, increasing defense spending and encouraging domestic energy production, leaving tax cuts for a second bill later in the year. Moving forward now with two different reconciliation strategies will mean the Congress will have to come to a consensus on one strategy and content at a later date.

The full Senate is expected to debate their budget resolution next week or the following, while the House’s resolution is expected to be debated in the full House chamber the week of February 24 (the next week the House is in session).

Limits on NIH Indirect Costs

The National Institutes of Health (NIH) announced late last week that it will immediately reduce “indirect costs” paid to universities, medical centers, and other research grant recipients. The agency noted that it has historically supported indirect costs with funds that averaged around 27% of the cost of a research grant. Under this announcement going forward, that rate would be 15% for new and existing grants. The cut is a major blow to the nation’s most elite research universities, which often get a rate of more than 50% to cover indirect costs. Indirect costs include scientists’ salaries, lab equipment, supplies, and other expenses that can be linked to one specific project.

However earlier this week, Judge Angel Kelley of the U.S. District Court for the District of Massachusetts issued a national pause on these changes to NIH indirect costs by issuing a restraining order late Monday night in response to a lawsuit filed that afternoon by associations representing the nation’s medical, pharmacy, and public health schools, as well as Boston and New York-area hospitals.

NIH funding as always enjoyed wide bi-partisan Congressional support and often supports state research institutions, so this move could irk Congressional republicans and democrats; Senator Susan Collins (R-ME), the Chair of the Senate Appropriations Committee, has already issued a statement in opposition to the move.

CDC Note to Grantees on Executive Orders

Earlier this week, CDC grantees received the following message through  Grant Solutions: “In compliance with the Temporary Restraining Order issue on January 31, 2025, in the United States district Court in the District of Rhode Island, the purpose of this communication is to rescind the following CDC communications effective immediately: January 29, 2015: Cease DEI Activities on ALL CDC funded awards; January 31, 2025: Ceases ALL Activities Promoting Ideology. Please director questions to [email protected]”

This message clarifies that the Temporary Restraining Order regarding the funding freeze also pertains to the two messages referenced, meaning those messages are not in effect.