HHS withdraws 340B drug rebate pilot program

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HHS is withdrawing the “340B Rebate Model Pilot Program” that was intended to go into effect on Jan. 1, according to a joint motion filed last week. 

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On Feb. 3, the House of Representatives passed the Senate Amendment to H.R. 7148, the Consolidated Appropriations Act, 2026, by a vote of 217 to 214. Later that day, President Donald Trump signed the bill into law, officially ending the brief partial government shutdown that began on Jan. 31. 
The U.S. House of Representatives Jan. 22 passed a three-bill minibus package that is expected to be the grand finale of the drama of the fiscal year 2026 appropriations process. The package, which funds the HHS as well as the departments of Defense, Transportation, Housing and Urban Development, Labor, and Education, gives NIH and NCI modest raises over FY25, and nullifies several  aggressive cuts the White House had proposed for NIH.
A federal judge has blocked the Health Resources and Services Administration from rolling out a pilot program that would reimburse safety net hospitals that get a discount on drugs through the 340B program via a rebate, as opposed to the status quo of up-front savings. The preliminary injunction was issued on Dec. 29, just a few days before the program was slated to begin on Jan 1. 

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