Statement:

Proposed CMS Cuts to State-Directed Payments

On the Hill: Nearly 100 Bipartisan House Members Urge No Federal Funds for 340B Rebate Model

March 31, 2026
Allison Lee

More than 90 bipartisan House lawmakers signed a Dear Colleague letter supporting a block on the use of federal funds to implement a rebate model for the 340B Drug Pricing Program. The letter, led by Reps. Doris Matsui (D-Calif.), Dusty Johnson (R-S.Dak.), Debbie Dingell (D-Mich.), and Tracey Mann (R-Kans.), would add language to the fiscal year 2027 Labor, Health and Human Services, Education, and Related Agencies bill blocking the use of the funds. The rebate model would reverse over three decades of precedent by changing the program from an up-front discount to a retroactive rebate. This will require safety-net providers to float significant amounts of cash to purchase needed drugs in hopes of a later rebate payment. The final letter is linked here.

Committee Activity This Week 

Both the House and Senate are in recess this week.

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