⚡️ NIMITZ HEALTH NEWS FLASH ⚡️ 

“FY26 Department of Health and Human Services Budget Hearing”

House Energy & Commerce Subcommittee on Health

June 24th, 2025 (recording linked here)

WITNESS & TESTIMONY

• The Honorable Robert F. Kennedy, Jr., Secretary, U.S. Department of Health

  and Human Services

HEARING HIGHLIGHTS

MEMBER OPENING STATEMENTS

• Subcommittee Chair Carter (R-GA) criticized the high cost of U.S. healthcare and poor health outcomes, particularly rising chronic disease and obesity. Drawing from his pharmacy background, he described the emotional and financial toll of chronic illness. He expressed support for innovation in drug development and looked forward to hearing how HHS plans to fix insurance processes and reduce provider burnout.

• Subcommittee Ranking Member DeGette (D-CO) praised past HHS achievements but condemned recent staffing cuts and halted grants under Secretary Kennedy’s leadership. She argued these actions have disrupted research and public health efforts, citing examples from her home state. She criticized what she saw as anti-science bias and poor management, especially regarding vaccine research and chronic disease studies. DeGette warned the proposed budget would harm NIH, CDC, and workforce development, risking lives and scientific progress.

• Full Committee Chair Guthrie (R-KY) noted that HHS has become the largest federal spender and called for smarter, more efficient management. He praised the administration’s embrace of innovation, including AI and disease research breakthroughs. He also supported efforts to reduce fraud and increase accountability in programs like ACA marketplaces. Guthrie urged bipartisan cooperation to modernize HHS while maintaining focus on core health outcomes.

• Full Committee Ranking Member Pallone (D-NJ) accused Secretary Kennedy of causing chaos at HHS through mass firings, illegal grant cuts, and anti-vaccine actions. He warned that the proposed budget would slash critical agencies and undermine public health infrastructure. He cited cuts to NIH, CDC, and FDA as threats to research, care delivery, and disease prevention. While expressing respect for the Kennedy family, he called for immediate oversight and a reversal of these policies.

WITNESS OPENING STATEMENT

• Secretary Kennedy stated that HHS aims to reduce costs, improve outcomes, and prioritize chronic disease, mental health, and addiction. He emphasized shifting resources from bureaucracy to frontline services and preserving Medicare and Medicaid. He proposed cutting controversial research, investing in food safety, leveraging AI, and restoring public trust through transparency. Kennedy invited bipartisan collaboration to “make America healthy again” and build a more compassionate, efficient HHS.

QUESTION AND ANSWER SUMMARY

• Chair Carter pressed on fiscal sustainability and HHS reform, tying rising healthcare costs to federal overspending. Secretary Kennedy argued that U.S. health outcomes had worsened despite historic budget increases and said HHS needed to shift from disease management to prevention. He cited redirection of NIH funds away from behavioral and gender-focused studies toward chronic disease research, and committed to restoring scientific rigor.

  Chair Carter expressed support for Kennedy’s orphan drug efforts, particularly for children with rare mitochondrial conditions.

• Ranking Member DeGette criticized HHS’s lack of responsiveness, citing over a dozen unanswered oversight letters and a court ruling overturning grant terminations. Secretary Kennedy agreed to comply with the ruling but claimed no knowledge of the “Defend the Spend” initiative or a letter signed by 68 Nobel laureates warning of political interference. He confirmed roughly 10,000 HHS staff received RIF notices and said layoffs targeted redundant administrative roles.

  Rep. DeGette noted NIH’s director was excluded from these decisions.

• Rep. Guthrie focused on the RIF process and its operational impact. Secretary Kennedy said litigation limits discussion, but stated some staff had been reinstated to cover critical functions. He cited widespread duplication across HHS and defended the reorg as a return to pre-Biden staffing levels.

  Rep. Guthrie also asked about CMS innovation policy. Secretary Kennedy highlighted AI integration efforts to modernize care and position the U.S. as a global leader in health tech.

• Rep. Pallone accused HHS of promoting misinformation, ignoring public comment, and obstructing congressional oversight. When asked, Secretary Kennedy refused to provide a deadline for responding to the numerous letters sent to his office by Committee Members.

  Rep. Pallone condemned the removal of vaccine committee members and warned that these decisions endangered public health.

• Rep. Dunn (R-FL) asked about efforts to rebuild public trust. Secretary Kennedy said transparency and evidence-based science would drive that effort.

  Rep. Dunn highlighted mitochondrial research in neurodegenerative disease and space health. Secretary Kennedy called mitochondrial dysfunction a central driver of chronic disease and affirmed ongoing support.

• Rep. Ruiz (D-CA) blasted errors in the Make America Healthy Again report, saying it cited studies that didn’t exist or misrepresented findings. Secretary Kennedy admitted he hadn’t fact-checked the report but insisted its conclusions were valid.

  Rep. Ruiz warned that relying on flawed data undermined scientific integrity and trust in HHS. He also criticized the push to limit agency researchers from publishing in peer-reviewed journals.

• Rep. Griffith (R-VA) urged preservation of black lung services in the NIOSH reorganization. He raised concerns about pesticide and microplastic research, unaccompanied minor vetting, and faster drug approvals for Huntington’s disease. Secretary Kennedy agreed on all fronts, saying compassionate use and safety protocols were expanding.

• Rep. Dingell (D-MI) gave an invitation to visit NIH-funded researchers in Michigan, warning that delays were endangering innovation. Secretary Kennedy agreed to meet and review cuts.

  On drug pricing, Secretary Kennedy backed Medicare negotiations and a “Most Favored Nation” policy, but gave vague timelines.

  Rep. Dingell challenged the administration’s plan to delay negotiations for small-molecule drugs, warning it could keep prices high for seniors.

• Rep. Bilirakis (R-FL) sought assurances that the rare pediatric disease voucher program would continue. Secretary Kennedy committed to supporting it and cited HHS initiatives using AI and regulatory reform to accelerate rare disease approvals. He also praised the National Priority Voucher program for cutting red tape and pledged continued expansion.

• Rep. Kelly (D-IL) criticized the reversal of COVID-19 vaccine guidance for pregnant women and children, citing opposition from medical groups. Secretary Kennedy denied removing choice but claimed emerging data showed safety risks.

  Rep. Kelly accused HHS of bypassing CDC and undermining public health messaging, highlighting discrepancies between CDC guidance and the Secretary’s statements.

• Rep. Crenshaw (R-TX) advocated for direct primary care in Medicaid. He pushed for modernizing regenerative medicine regulations and expanding psychedelic-assisted therapy access. Secretary Kennedy said all were HHS priorities, citing active trials and coordination with VA and DOD. He committed to accelerating timelines and regulatory clarity for these therapies.

• Rep. Barragán (D-CA) sharply criticized the proposed $1.7B cut to the NIH’s National Institute on Aging. She noted that 13 of 35 Alzheimer’s Disease Research Centers had already lost funding, affecting services and research nationwide. Secretary Kennedy admitted he was unaware of these cuts but committed to reviewing them.

  Rep. Barragán asked if the 14 centers up for renewal in 2026 would be fully funded. Secretary Kennedy declined a direct commitment but said he would work with her on the issue.

• Rep. Joyce (R-PA) warned that the IRA discouraged orphan drug development and praised his Orphan Cures Act as a fix. Secretary Kennedy agreed, noting the administration supports reversing the damage.

  Rep. Joyce (R-PA) also criticized Medicare pay cuts to physicians and asked for help restoring private practice sustainability. Secretary Kennedy reform was critical to preserving primary care.

• Rep. Schrier (D-WA) said Congress was mislead after all CDC vaccine advisory committee members were fired. She emphasized the lifesaving impact of vaccines and these actions undermined public health trust. Secretary Kennedy denied violating any commitments.

• Rep. Balderson (R-OH) praised wearables and digital tools. Secretary Kennedy said HHS would soon launch a major campaign to promote wearable use, aiming for universal adoption within four years. On privacy, he said safeguards would be part of the rollout and stressed remote monitoring as vital for rural and aging populations.

• Rep. Trahan (D-MA) warned Medicaid and ACA cuts would trigger hospital closures, especially in rural and underserved areas. Secretary Kennedy said Medicaid growth would be limited—not slashed—and that Congress must address hospital funding.

  Rep. Trahan countered that lives were at stake and called his answer evasive.

• Rep. Harshbarger (R-TN) urged PBM reform and relief for independent pharmacies. Secretary Kennedy backed ending PBM markups via transparency and direct drug sales.

  Rep. Harshbarger (R-TN) also sought deregulation for compounded drugs and in-home infusion. Secretary Kennedy welcomed her reform proposals and called home-based care a priority.

• Rep. Veasey (D-TX) condemned proposed cuts to federal addiction programs, warning they would harm veterans and families. Citing his own recovery, Secretary Kennedy said funds were shifting to states for tailored solutions.

  Rep. Veasey challenged that rationale, saying the cuts abandon those still struggling.

• Rep. Miller-Meeks (R-IA) promoted her Alternatives to Pain Act to expand non-opioid treatments in Medicare. Secretary Kennedy supported the bill and highlighted a promising non-opioid drug.

  On rural care, Secretary Kennedy pointed to HHS investments in telemedicine and AI diagnostics to improve access.

• Rep. Fletcher (D-TX) questioned about EMTALA obligations. Secretary Kennedy affirmed that hospitals must provide stabilizing care—including abortion—when medically necessary, and that he had sent guidance to all U.S. hospitals reaffirming this.

  Rep. Fletcher emphasized clarity is critical for providers, especially post-Dobbs, and asked HHS to prioritize correspondence from the committee. Secretary Kennedy agreed and reiterated his support for federally funded medical research.

• Rep. Cammack (R-FL) raised concern over maternal health deserts and fragmented federal maternal care programs. Secretary Kennedy agreed reform was needed and cited disproportionate risks to Black mothers.

  On migrant children, Rep. Cammack highlighted HHS’s failure to track over 340,000 minors under the previous administration. Secretary Kennedy blamed prior leadership’s emphasis on speed over safety and outlined new protocols: DNA testing, background checks, and sponsor verification.

• Rep. Ocasio-Cortez (D-NY) focused on corporate accountability. She confirmed Kennedy had divested from healthcare-related assets but owns Bitcoin. She pressed him on UnitedHealthcare, which she said is under DOJ investigation and part of $80 billion in annual Medicare Advantage fraud. Secretary Kennedy was unaware of the investigation or HHS’s April decision to raise Medicare Advantage payments by 5.06%.

  Rep. Ocasio-Cortez criticized the increase as unjustified and harmful.

• Rep. James (R-MI) criticized perverse incentives that profit from illness. Secretary Kennedy highlighted efforts through CMMI and insurer collaboration to promote value-based care.

  On nutrition, Secretary Kennedy said new dietary guidelines due by August would cut ultra-processed foods and improve access through Medicaid. He also noted insurers pledged to eliminate 80% of prior authorizations and improve real-time access.

• Rep. Auchincloss (D-MA) pressed on transparency, citing conflicts of interest involving Gary Means (TrueMed) and Brad Smith (Main Street Health). Secretary Kennedy said he enforced disclosure rules only within HHS. He deflected when asked to publicly support outside disclosures.

• Rep. Obernolte (R-CA) emphasized AI’s potential to reduce healthcare costs and administrative burdens. Secretary Kennedy agreed and said AI is being deployed across HHS for fraud detection, diagnostics, and paperwork reduction.

• Rep. Carter (D-LA) condemned the gutting of HIV prevention and trial funding, citing canceled studies and halted youth programs. Secretary Kennedy insisted the programs were being consolidated, not cut.

  Rep. Carter disputed this and pressed for accountability on halted NIH-funded HIV vaccine trials. Secretary Kennedy defended reallocating funds from long-failing research.

• Rep. Langworthy (R-NY) turned to supply chain vulnerabilities, particularly the U.S. dependence on imported nitrile gloves — with nearly half sourced from China. Secretary Kennedy acknowledged the risk, noting that current national stockpiles are inadequate and often expired. He said HHS is exploring partnerships with countries like Argentina and Ecuador for alternative, more secure production sources, while also incentivizing domestic manufacturing where possible.

  Rep. Langworthy stressed the national security implications of relying on adversarial nations for essential medical supplies.

  On infant formula, Secretary Kennedy described ongoing efforts to modernize FDA oversight and rebuild the supply chain, referencing “Operation Historic Speed” and investments to boost both quality and quantity.

• Rep. Landsman (D-OH) flagged cuts to maternal health and NIOSH positions. Secretary Kennedy agreed to work on restoring Safe Motherhood program funding and confirmed Head Start would remain funded. He also pledged to meet on preserving NIOSH jobs and worker safety programs.

• Rep. Rulli (R-OH) praised the $10M in long-term health studies following the East Palestine derailment. Secretary Kennedy detailed visits and promised transparency.

  Secretary Kennedy used extra time to defend firing the ACIP panel, citing conflicts of interest and promising more rigorous vaccine safety oversight.

• Rep. Kean (R-NJ) sought assurance that HHS restructuring wouldn’t delay drug reviews. Secretary Kennedy said biotech timelines wouldn’t be affected and reaffirmed U.S. leadership in the sector. He also backed easing the “pill penalty” to revive small molecule innovation and supported OTC drug switch reforms through FDA leadership.