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Halfway through the fiscal year, NIH lags on grantmaking schedule

As the halfway point of the federal fiscal year passes, the NIH has only obligated around 15 percent of the estimated $38 billion it has to distribute in grants and contracts, according to analysis by the Association of American Medical Colleges. The 43-day-long government shutdown in October and November is partially responsible for these delays, as well as layoffs and departures of thousands of NIH staff members since the beginning of President Trump’s second term. Despite Congress providing $47.2 billion in total funding to the NIH in FY26, the White House Office of Management and Budget (OMB) had reportedly placed a hold on releasing funds, raising concerns that the agency was not authorizing the appropriated dollars. At a March 17 House oversight hearing on the NIH, Director Jay Bhattacharya assured the subcommittee that the agency will spend every dollar it has received from Congress.

The first half of FY25 also saw a slow start to NIH awards going out the door. This trend quickly sped up by the summer, but in an effort to spend its full budget, the NIH made the unusual shift to fund more large lump-sum payments for many years of research rather than paying for research one year at a time, resulting in fewer grantees.

Trump delays naming new CDC Director

The White House remains on a time crunch to name a permanent director of the Centers for Disease Control and Prevention. Under federal law, Senate-confirmed positions have a 210-day limit on being led by acting replacements, a deadline which passed last night. The Health Department announced yesterday that Dr. Jay Bhattacharya will continue to oversee the CDC until the agency has a permanent director, adding that Health Secretary RFK Jr. and Chris Klomp are leading the search.

President Trump has not yet announced his pick, as the administration struggles to find a nominee that aligns with Secretary Kennedy’s Make America Healthy Again agenda, while avoiding enough of his vaccine stances to be able to win Senate confirmation.

The administration’s health agenda received a major blow last week when a federal judge in Massachusetts blocked several of Kennedy’s vaccine policies from being implemented. Ruling on a lawsuit brought by six prominent medical organizations, Judge Brian Murphy said that the federal government had not based its decisions on science in limiting Covid shots and revising the childhood vaccine schedule. The ruling also reversed all decisions made by panelists that Kennedy had appointed to the Advisory Committee for Immunization Practices. An appeal is expected, but lawyers for the plaintiffs celebrated this as “a significant victory for public health, evidence-based medicine, the rule of law, and the American people.”

Senate HELP committee to vote on key bills

 On Thursday, February 26, the Senate Health, Education, Labor, and Pensions (HELP) Committee will vote on several significant bills regarding access to quality education and health care.

The bills under consideration include:

  • S. 1602, Mathematical and Statistical Modeling Education Act
  • S. 1558, Understanding the True Cost of College Act of 2025
  • S. 3747, Home School Graduation Recognition Act
  • S. 1782, Charlotte Woodward Organ Transplant Discrimination Prevention Act
  • S. 1552, Living Donor Protection Act of 2025
  • S. 3315, Health Care Cybersecurity and Resiliency Act of 2025

Date: Thursday, February 26, 2026

Time: 10:00 AM ET/ 9:00 AM CT

Location: 430 Dirksen Senate Office Building

Link to watch live

Jay Bhattacharya named acting CDC director

Dr. Jay Bhattacharya, the head of the NIH, is set to become acting director of the CDC, according to administration officials. He will continue to run the NIH, serving both positions until President Trump appoints a permanent CDC director that gets confirmed by the Senate.

Bhattacharya will replace Jim O’Neill, who was removed last week by HHS Secretary Robert F. Kennedy Jr. as part of a broader restructuring. White House officials said President Trump will name O’Neill to lead the National Science Foundation.

O’Neill was confirmed by the Senate last June as deputy secretary of HHS and had been leading the CDC temporarily after the ousting of Susan Monarez in August following her disagreements with Secretary Kennedy over vaccine recommendations. O’Neill led the CDC through its most controversial changes to vaccine policy, including removing meningitis, flu, hepatitis A, and rotavirus from the list of routinely recommended vaccines.

The restructuring also promotes Chris Klomp, deputy administrator of the Centers for Medicare and Medicaid Services, to chief counselor overseeing all HHS operations.

The leadership shake-up comes as administration officials look to focus on President Trump’s health policy moves, particularly his push to lower drug prices, ahead of the midterm elections.

Congress Home for the Holidays

After a busy week, Senators huddled on the floor Thursday night as they made an eleventh-hour attempt to find a path forward on bringing up a bundle of five bills or minibus for consideration before the end of 2025. No agreement to move forward was reached after Senators Michael Bennet and John Hickenlooper, both of Colorado, announced they would hold up the package after White House OMB director Russ Vought’s decision to dismantle the National Center for Atmospheric Research, which is based in Colorado.

 

The package under consideration in the Senate would fund the Departments of Defense, Education, Housing and Urban Development, Commerce (including NOAA), Health and Human Services (including NIH), Transportation, Labor and Interior, along with the EPA and NSF.

A few Republican Senators have held the bill from moving forward but released a hold after Senate leadership agreed to an amendment vote on stripping earmarks in the legislation. The Colorado hold is new to the OMB decision.

The Senate will resume consideration and negotiations in January.