Today’s Situation Report highlights several key policy shifts and decisions that impact the health research landscape. The Government Accountability Office (GAO) ruled that NIH’s grant freeze violated federal law, while a new executive order signals increased oversight of research grants. HHS Secretary RFK Jr. is urging states to share Medicaid data to support long-term health studies. Meanwhile, federal funding for mRNA vaccine development is being cut amid political controversy, and a proposed VA rule threatens abortion access for veterans. Together, these issues underscore the changing environment for health services research and policy.
In today’s issue:
- New Executive Order Opens Door to Further Scrutinize Federal Research Grants
- GAO Says NIH Grant Freeze Broke Federal Spending Law
- RFK Jr. Urges Governors to Share Medicaid Data
- HHS Cuts Funding for mRNA Vaccine Development
- Proposed Rule Threatens Veteran Abortion Access
New Executive Order Opens Door to Further Scrutinize and Politicize Federal Research Grants
On August 7th, President Trump signed an executive order aiming to significantly tighten control of the federal grant funding process. The order requires each agency head to designate a senior appointee to create a process to review grant announcements to ensure they are consistent with agency priorities and national interest. This furthers efforts to reduce federal spending on grants deemed wasteful and target research topics that have become politicized. For health services researchers, this development is critical as it could threaten the availability of federal grants that could hamper efforts to study healthcare access, quality, and innovation that are vital for equitable, evidence-based policymaking. AcademyHealth is monitoring this development closely.
GAO Says NIH Grant Freeze Broke Federal Spending Law
In its August 5, 2025, decision, the Government Accountability Office (GAO),Congress’s independent watchdog, concluded that the Department of Health and Human Services (HHS) and the National Institutes of Health (NIH) broke federal law when they withheld research grant funding that Congress had already approved for fiscal year 2025. GAO decisions don’t directly force agencies to act, but give Congress and the courts strong grounds to seek corrective action.
Following executive orders from President Trump to end equity-related federal funding, HHS told NIH to stop key parts of the grant process—canceling more than 1,800 awards and pausing public notices about peer review results. GAO found this violated the Impoundment Control Act of 1974, which requires federal agencies to use appropriated funds as directed by Congress—or formally notify Congress if they intend not to. NIH never sent that required notice.
For health services researchers, this freeze meant abruptly halted projects, uncertainty for research teams, and delays in studies that inform policy and improve care. Although NIH has restarted some administrative functions, it has not explained the pause or shared details about the status of all affected grants.
The GAO also warned about another risk: so-called “pocket rescissions.” This is when the president asks to cancel funds so late in the year that the money expires before Congress can respond. This tactic is illegal because it bypasses Congress’s power over federal spending. Lawmakers worry such moves could undermine the stability and predictability of the federal research funding process, on which health services research depends.
RFK Jr. Urges Governors to Share Medicaid Data
In the National Governors Association summer meeting, HHS Secretary RFK Jr. called on governors to share their state's Medicaid data so the agency can track health outcomes of certain drugs, including weight loss medications and antidepressants. He cites the importance of HHS having state-level data in order to conduct longitudinal studies to understand environmental injuries. Thus far, governors from Indiana, Louisiana, and Oklahoma have agreed to share their Medicaid data. HHS plans to depersonalize the data and share via a public database that can be used by independent scientists. If acted upon, this initial could unlock critical datasets needed for health services researchers to study long term health outcomes, identify disparities, and inform evidence-based Medicaid reform. However, there are concerns, especially given the federal government's actions to share Medicaid enrollee data to the Department of Homeland Security to identify immigrants.
HHS Cuts Funding for mRNA Vaccine Development
On Tuesday, HHS announced it is winding down its MRNA vaccine development, signaling a shift in federal investments amid broader fiscal constraints and the ongoing politicization of vaccines. The agency's Biomedical Advanced Research and Development Authority (BARDA) will terminate 22 mRNA vaccine development investments. In his statement, HHS Secretary RFK Jr. suggested the vaccines fail to protect effective against upper respiratory infections like COVID-19 and flu, despite evidence. This decision is set against the backdrop of the successful employment of mRNA technology during the COVID-19 pandemic. Moving forward, resources will be redirected to focus on platforms with stronger safety records and transparent clinical and manufacturing data practices. Critics underscore how this decision weakens the nation's biosecurity and further promulgates anti-vaccination and pseudoscience agendas. This raises questions for researchers on the government's role in biomedical innovation and the nation's capacity for emergency preparedness.
Proposed Rule Threatens Veteran Abortion Access
Amid the ongoing battle against reproductive rights, the Administration is calling to remove abortion coverage from the list of medical benefits veterans, and the families receive. On Monday, the Department of Veterans Affairs posted a proposed rule change that would reverse the existing policy allowing VA healthcare to provide abortions. While abortions would still be allowed under life-threatening circumstances, there are no stated exceptions for pregnancies that are the result of rape or incest. The VA did not include abortion in its coverage until 2022, a decision that came after Roe v. Wade was overturned and state bans began restricting access. This development raises questions for health services researchers on the implications on of policy shifts on veteran health care, equitable care access for vulnerable populations, and the broader impact of restricted reproductive services on public health outcomes. Take action to protect veteran abortion access and by submitting comments to the VA during the open comment period before September 3, 2025.
Previous Updates
This is the latest in a series of Situation Report updates from AcademyHealth. You can find prior issues here.
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