Update: What We’re Watching, May 9, 2025

House Republicans scale back Medicaid cuts amid ongoing budget talks, while the National Institutes of Health (NIH) and the Centers for Medicare and Medicaid Services (CMS) launch a national autism research initiative linking Medicaid and Medicare data. The Food and Drug Administration (FDA) moves to accelerate domestic drug manufacturing approvals, and a high-profile lawsuit filed by Kansas and other states could determine the future of telehealth access to abortion medication. 

The views expressed in the following news stories, news releases or documents are not necessarily those of the Kansas Health Institute (KHI). They are being shared with the intent of keeping Kansans informed of the latest developments related to federal health policy.

1. Federal Funding Cuts Impact State Health Agency Workforce  

In March, the Trump administration terminated over $33 million in federal health and mental health service grants that were administered by Kansas state agencies, leading to an elimination this week of 56 public health positions, Governor Laura Kelly announced Thursday. The announcement indicated cuts affected programs for vaccine distribution, outbreak monitoring, rural health disparities, and support for local nonprofit organizations. 

🔗 Read more from the Governor’s Office News Release: Trump Administration Cuts Critical State Health Funds, Eliminating Access to Vital Services During Disease Outbreaks 

🔗 Read more from WIBW: KDHE lays off over 50 employees, Gov. Kelly blames Trump Administration 

2. Potential Medicaid Cuts Stalled in Congress  

Republican leaders in the U.S. House of Representatives appear to have backed off two major proposals to cut Medicaid after pushback from some GOP lawmakers during a meeting with Speaker Mike Johnson, R-Louisiana. These policies — reducing the federal Medicaid match rate for expansion states and capping per capita spending — would have contributed significantly to the Energy and Commerce Committee’s $880 billion, 10-year savings target but did not have sufficient support. One provision still on the table is imposing work requirements for some Medicaid enrollees in expansion states, which could save over $100 billion. 

🔗 Read more from Roll Call: House GOP drops some Medicaid cuts from reconciliation plan 

🔗 Read more from The Hill: House Republicans nix controversial Medicaid proposal as plan takes shape 

🔗 Read more from AP News: House GOP backing off some Medicaid cuts as report shows millions of people would lose health care 

🔗 Read more from the Governor’s Office News Release: Governor Kelly Calls on Federal Leaders to Protect the Medicaid Program 

3. HHS Updates:  

Autism Research Initiative: The National Institutes of Health (NIH) and CMS will partner to create a data platform linking Medicaid and Medicare information for autism research, HHS Secretary Robert F. Kennedy Jr. announced on May 7. The platform will support a broader $50 million initiative to study autism’s root causes and related chronic conditions. Researchers will examine autism diagnosis trends, treatment outcomes, care access and economic impact, with initial findings expected by September 2025.  

🔗 Read more from Reuters: Kennedy launches US autism project using Medicare and Medicaid data 

🔗 Read more from CMS: NIH, CMS Partner to Advance Understanding of Autism Through Secure Access to Select Medicare and Medicaid Data 

🔗 Read more from KETV7 Omaha: HHS to build Medicare, Medicaid database on autism, other chronic illnesses 

President Donald Trump Nominates U.S. Surgeon General Pick: Trump has nominated Dr. Casey Means, a wellness influencer and critic of conventional medicine, to be the next U.S. surgeon general, replacing his previous nominee, Dr. Janette Nesheiwat. Means, who has close ties to Kennedy, is known for promoting holistic health approaches and co-founding a health tech startup. While she has no government experience, Trump praised her as a champion of the “Make America Healthy Again” agenda focused on preventing chronic disease and reforming food and drug policies.  

🔗 Read more from AP News: Donald Trump taps wellness influencer close to Robert F. Kennedy Jr. for surgeon general 

4. Drug Manufacturing Order

Trump signed an executive order on Monday aimed at accelerating approval timelines for pharmaceutical manufacturing facilities in the U.S. The order instructs the FDA to streamline its review process and offer early guidance to domestic manufacturers before facilities begin operations.  

🔗 Read more from Reuters: Trump signs executive order to encourage US drug manufacturing 

🔗 Read more from Pharmaceutical Technology: FDA plans to expand unannounced inspections of foreign drug plants 

🔗 Read more from Executive Order: Regulatory relief to promote domestic production of critical medicines 

5. DOJ Asks for Abortion Lawsuit to be Dismissed:  

The Trump administration has asked a U.S. District Court judge to dismiss a lawsuit from Idaho, Kansas and Missouri that seeks to overturn federal prescribing guidelines for and telehealth access to the abortion drug mifepristone. Justice Department lawyers, following the Biden administration’s position, argued that the states lack legal standing and filed in the wrong venue. The states want the FDA to reinstate stricter rules, including requiring in-person visits and limiting usage later in pregnancy, but the DOJ contends their claims are procedurally flawed and time-barred.  

🔗 Read more from KCUR: Trump administration asks to dismiss Kansas and Missouri AG’s lawsuit targeting abortion pill 

🔗 Read more from NPR: Trump administration asks court to toss suit restricting access to abortion drug 

🔗 Read more from USA Today: Trump administration calls for anti-abortion drug case dismissal, without defending the pill