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Capitol Hill Report: Proposed funding package includes major wins

January 26, 2026

We’ve got your back on Capitol Hill—and we’re in overdrive advocating for you and your patients. Capitol Hill Report is your source for all things neurology advocacy, including a new bill that would deliver a huge win for neuroscience, telehealth, and more. Plus, we want to hear from you: Let us know if your practice, research, or patients are affected by recent policy changes.

Issue in focus

The House of Representatives passed a “minibus” bill—legislation containing several different appropriations bills—on January 22nd. The bill includes appropriations for Labor, Health and Human Services, 好色先生 and Related Agencies (Labor-H); Defense; and Transportation, Housing and Urban Development, and Related Agencies; and the Department of Homeland Security.

The package includes several health care priorities that have been a focus of our advocacy in the 119th Congress. If this bill becomes law, it will be a significant win for AAN advocacy, our members, and the patients they serve. Below is an overview of relevant provisions for our members and their patients.  

Funding for neuroscience research 
The bill includes a total of $48.7 billion in funding for the National Institutes of Health (NIH)—an increase of more than $400 million compared to fiscal year 2025 numbers. This is a huge victory for the AAN and the medical research community. It’s also a rejection of the administration’s request to cut $18 billion from the NIH’s budget. 

For neuroscience research specifically, the bill includes $2.8 billion in funding for the National Institute of Neurological Disorders and Stroke (NINDS) and a $4 million increase in base funding across NINDS and the National Institute of Mental Health (NIMH) for the BRAIN Initiative.

Outside of direct funding, the bill also includes several provisions that protect the research ecosystem in the US:   

  • Indirect cost: The bill maintains language that prohibits the NIH from making unilateral changes to indirect cost contracts, effectively stopping the administration from instituting its proposed cap of 15% on all indirect cost. The final bill also removes language from the original House version of the Labor-H bill, which would institute a 30% cap on all institutions subject to the endowment tax. Finally, it includes language that directs the NIH to work with the AAN-endorsed Joint Associations Group on Indirect Costs, which is seeking to modernize how indirect cost works.  
  • Multi-year funding: The bill includes language that prohibits the NIH from adopting a multi-year grant funding model. A multi-year funding model would force the NIH to front-load the funding for any multi-year grant, effectively lowering the number of grants the agency could approve in a single year.
  • Non-human primate research: The bill language does not include any prohibitions on non-human primate research and doesn’t appear to include any restrictions on animal research at large. It does specifically appropriate $30 million to upgrade non-human primate research facilities.  

Health care provisions
Outside of appropriating funds, the package also includes several health care provisions supported by the AAN:

  •  Telehealth: The bill includes an extension of Medicare telehealth flexibilities until the end of 2027. This is a significant win for AAN members and provides some security for patients who rely on telehealth for neurological care. Notably, the bill does include two restrictions on telehealth that are concerning. It requires a modifier be used when services provided incident to a physician’s services are billed over telehealth and when telehealth services are furnished through a telehealth virtual platform by a physician/practitioner that contracts with an entity that owns such virtual platform or for which a physician/practitioner has a payment arrangement with an entity for use of such a platform. If passed, the AAN will monitor how this requirement is implemented by CMS and express concern over the administrative burden it will place on our members.  
  • APM bonus: While the bill does not include broad, structural changes to the Medicare Physician Fee Schedule, it does extend the bonus provided to physicians who qualify for an Alternative Payment Model (APM) through 2027.  
  • PBM reform: The bill includes several provisions seeking to reign in potential abuses by pharmacy benefit managers (PBMs), including transparency requirements, de-linking PBM reimbursement from drug list prices, and putting guardrails around offshore group purchasing organizations (GPOs) created by PBMs to avoid US regulatory requirements.  
  • Lorna Breen Act: The bill includes re-authorization of the Dr. Lorna Breen Health Care Provider Protection Act, which provides resources for physician wellness.  

Our advocates are working with lawmakers to express the importance of passing this legislation. AAN members should note that potential severe weather impacting the mid-Atlantic, as well as concerns around funding for the Department of Homeland Security, could stop the Senate from taking up the package this week, potentially resulting in a short-term lapse in telehealth authorization and government funding for certain agencies. We’ll monitor the situation and provide an update if such a lapse takes place. 

If you have any questions about the minibus package or our advocacy in Washington, DC, please send us an email.


Latest advocacy news

AAN leads response to NINDS director’s departure 
As covered in the last Capitol Hill Report, longtime NINDS Director Walter Koroshetz, MD, FAAN, was denied reappointment. This came despite an endorsement from the head of the NIH and a recommendation from the NIH’s review panel, and no clear succession plan was announced. In response, we led a sign-on letter last week that was joined by 39 other organizations. The letter asks congressional leaders to understand what happened, ensure future decisions are transparent and sufficiently planned, and ensure any leadership change prioritizes scientific research excellence. The letter was in multiple outlets.

Congress questions health insurance CEOs on prior authorization, step therapy 
Late last week, a joint meeting of the House Committee on Energy and Commerce and the House Ways and Means Committee heard from America’s top health insurance companies. Several members of Congress questioned the CEOs on AAN priorities, including reforms to prior authorization and step therapy requirements. You can watch the Energy and Commerce portion of the hearing and the Ways and Means portion.  


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