You Won’t Believe What the 2026 Health Care Bill Could Mean for YOUR Wallet—Find Out Now!

As negotiations in Congress proceed over federal funding priorities, significant attention is being paid by health care providers, research institutions, and various industry stakeholders to developments that could influence reimbursement rates, compliance obligations, and program funding. On January 20, the U.S. House of Representatives unveiled the text of the Consolidated Appropriations Act, 2026, which encompasses the FY26 appropriations bill for Labor, Health and Human Services, and Related Agencies. This legislation, resulting from a bipartisan agreement, will finance federal agencies for the remainder of FY26 as part of a broader “minibus” package aimed at preventing a government shutdown.

One key aspect of the bill is the allocation of $116.6 billion to the U.S. Department of Health and Human Services (HHS), a figure that notably rejects many of the more drastic funding cuts and structural changes that were initially proposed by the administration.

Funding Highlights

Among the major funding highlights outlined in the bill:

• National Institutes of Health (NIH): The NIH is slated to receive approximately $48.7 billion in total funding, which includes:
  • $7.4 billion designated for cancer research
  • $3.9 billion earmarked for Alzheimer's research
  • $2.3 billion allocated for diabetes research
• Centers for Disease Control and Prevention (CDC): Approximately $9.2 billion in near-level funding, which includes:
  • $360 million for public health infrastructure (a $10 million increase)
  • $185 million for data modernization (also a $10 million increase)
• Mental Health and Substance Abuse: A total of $5.5 billion is allocated for mental health services, which includes:
  • $1.6 billion for state opioid response grants
  • $535 million for the 988 Suicide & Crisis Lifeline, reflecting a $15 million increase
• Public Health Preparedness: $3.7 billion is designated for the Administration for Strategic Preparedness and Response (ASPR) to support the Hospital Preparedness Program, including $240 million in level funding for formula grants.
• Community Health Centers: The bill allocates $1.86 billion in discretionary funding, alongside extensions of mandatory funding.
• Rural Health: $418 million is targeted to support rural hospitals at risk of closure and to increase rural residency spots.
• Maternal and Child Health: Funding includes $1.2 billion for the Maternal and Child Health Bureau, which features a new $15 million pilot program titled "Food Is Medicine," aimed at providing maternal produce prescriptions.
• Ryan White HIV/AIDS Program: Maintained at $2.6 billion, with level funding for the "Ending the HIV Epidemic" initiative.

Policy Provisions and Implications

Additionally, the bill contains notable policy provisions, such as language requiring hospitals to ensure that each off-campus outpatient department (OPD) possesses a unique National Provider Identifier, different from that of the main hospital, as noncompliance will make the OPD ineligible for Medicare payments starting in 2028. It also extends pandemic-era Medicare telehealth waivers through 2027.

However, one significant omission in the bill is the lack of an extension for enhanced subsidies for purchasing Affordable Care Act (ACA) marketplace insurance. This means that ACA enrollees will continue to face increased premium payments, projected to more than double the out-of-pocket premium in 2025, on average.

The FY26 appropriations package largely aims to maintain stability across major health programs while signaling ongoing congressional backing for research, public health infrastructure, telehealth expansion, and support for safety-net providers. Nevertheless, the looming compliance requirements and the absence of ACA subsidy extensions are factors that stakeholders will need to closely evaluate.