Happy Monday! This week’s newsletter underscores a familiar reality: even “must-pass” legislation is now inseparable from broader fights over cost, credibility, and control. Here’s what we’re tracking.

In this week’s Nimitz Health:

• Federal News: Jan. 30th funding deadline, behavioral health grants reversal, Trump health agenda, and GLP-1 label change

• State News: New Jersey vaccine policy shift & psilocybin pilot program

• Industry News: Epic litigation, health AI regulation, and GSK acquisition

WHO’S HAVING EVENTS THIS WEEK?

Wednesday, January 21st

• *House Budget Committee: “Reverse the Curse: Skyrocketing Health Care Costs and America's Fiscal Future” at 10:15 am. Watch here.

Thursday, January 22nd

• *House Energy & Commerce: “Lowering Health Care Costs for All Americans: An Examination of Health Insurance Affordability” at 9:45 am. Watch here.

• House Education & Workforce: “Examining the Policies and Priorities of the Mine Safety and Health Administration” at 10:15 am. Watch here.

• *House Ways & Means: “Full Committee Hearing with Health Insurance CEOs” at 2:30 pm. Watch here.

*Will be covered by Nimitz Health. Please email [email protected] if you would like a readout of any other hearings.

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NEWS DRIVING THE WEEK

Federal News

Congress is racing toward the Jan. 30 funding deadline, with leaders moving a major package that effectively sets the near-term direction for HHS and public health programs while rejecting many of President Trump’s proposed reductions. Health stakeholders are watching closely not only for topline funding levels but also for potential health-related riders and program extensions that could hitch a ride in the final dealmaking this week.

HHS faced a week of turbulence and reversals. The department abruptly moved to terminate thousands of substance use and mental health grants, then rapidly reinstated the funding after intense pushback, raising concerns about stability for behavioral health systems nationwide. HHS also began reinstating some workplace-safety personnel after layoffs, signaling continuing uncertainty inside the agency.

On health policy, the White House attempted to reset the narrative with a new outline of President Trump’s health agenda, but even Republicans acknowledge the limits of what can pass, especially given intra-party tensions and the fragility of bipartisan talks. Senate negotiations over a broader health package remain uncertain, with reporting suggesting talks are on “thin ice” and key timelines slipping toward late January. Democrats are separately sharpening their push to preserve affordability provisions for ACA enrollees, including continued access to no-premium marketplace plans for certain low-income beneficiaries.

The Pan-American Health Organization will evaluate in April whether the United States retains its measles-elimination status after significant case counts in 2025 and new cases already reported this year. The development arrives amid growing tension around federal vaccine policy and advisory processes, as HHS announced two new vaccine advisers and political figures continue to make sweeping claims that public health experts and peer-reviewed studies dispute.

Finally, FDA asked manufacturers of leading GLP-1 weight-loss drugs to remove suicide warnings from product labels after reviewing available data and determining the evidence does not support a causal association. The agency’s move could affect prescriber comfort, payer decisions, and broader GLP-1 market dynamics.

State News

New Jersey is moving aggressively to protect vaccine policy from federal volatility. Gov. Phil Murphy signed legislation reducing the state’s automatic reliance on federal vaccine advisory recommendations, shifting more authority to the state health department in determining how recommendations translate into coverage and requirements. The change is being framed as a safeguard for evidence-based decision-making amid uncertainty surrounding federal vaccine processes.

New Jersey is also nearing authorization of a psilocybin pilot program, reflecting a broader trend of states testing psychedelics in clinical settings for behavioral health conditions including PTSD. With bipartisan interest growing nationwide, the NJ effort is poised to be a closely watched model for how states can evaluate psychedelic-assisted therapy while balancing access, medical governance, and regulatory risk.

Health industry leaders are escalating concerns about the growing patchwork of state AI regulation. A coalition of major stakeholders, including large providers, payers, and EHR-linked organizations, is calling for a moratorium on state AI laws and a federal framework instead, arguing that inconsistent rules will make compliance unworkable and slow deployment of clinical and administrative AI tools.

Industry News

The data governance and interoperability fight is also heating up through litigation. Epic’s lawsuit alleging health data fraud underscores how high the stakes have become in disputes over access to medical records, third-party apps, and verification processes. The case lands at a moment when policymakers want broader patient access and interoperability, but providers and EHR vendors are increasingly warning that weak guardrails invite misuse.

Pharma remains split between political risk and deal momentum. GSK announced a $2.2B acquisition of the biotech behind a late-stage food allergy therapy candidate, the latest example of major companies racing to strengthen pipelines. At the same time, analysts are warning that vaccines, historically one of the steadiest corners of pharma, are increasingly exposed to political and market swings, with potential implications for investment and manufacturing strategy.

FOR FUN

The Indiana Hoosiers won their first College Football National Championship last night after defeating Miami by 27-21. See the game highlights here.

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