Update: What We’re Watching, June 18, 2026

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Update: What We're Watching, June 18, 2026

Hill to the Heartland: Federal Health Policy Briefing

Hill to the Heartland: Federal Health Policy Briefing is a product series providing regular updates on federal health policy discussions. Sign up here to receive these summaries and more, and also follow KHI on Facebook, X, LinkedIn and Instagram.

The Trump Administration warned hospitals across the nation to comply with price transparency requirements or face fines, while the White House Office of Management and Budget proposed an overhaul to federal grant rules that, if adopted, would affect universities, state and local governments, public health and health care organizations, nonprofit entities and a wide range of federally funded programs.

Here is some of the health-related news we are watching that could have an impact on Kansas.

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. Hospitals Warned About Price Transparency Requirements

The Trump Administration issued a warning to more than 500 hospitals nationwide for failing to publicly disclose pricing information, with non-compliant facilities facing fines of up to $2 million annually. The warnings follow a 2019 Executive Order that led to federal regulations requiring hospitals and insurers to disclose pricing information and, in the case of hospitals, provide patients with advance estimates of out-of-pocket costs for certain services. A federal judge upheld the hospital price transparency rule in 2020. Eight Kansas hospitals received notices from the Administration. On June 10, the U.S. House Energy and Commerce Subcommittee on Health held a hearing on policies to increase health care transparency, where members discussed several proposals, including:

• Requiring commercial health plans to disclose data on prior authorization usage, claim denial rates and plan overhead costs.

• Requiring hospitals to make pricing information easier for patients to find and compare before receiving care.

Read more from the Associated Press: Trump Administration Warns Over 500 Hospitals to Provide More Price Information or Face Fines

Read the 2019 Executive Order: Improving Price and Quality Transparency in American Healthcare To Put Patients First

Read more from KSN: Trump Administration Warns Eight Kansas Hospitals About Pricing Transparency

Watch the Subcommittee meeting here: Lowering Health Care Costs For All Americans: Examining Policies Increasing Health Care Transparency

2. Office of Management and Budget Proposes Significant Changes to Federal Grant Rules

On May 29, The White House Office of Management and Budget (OMB) published a proposed rule (Regulation for Federal Financial Assistance) that would revise the framework governing how more than $1 trillion in federal grants, cooperative agreements and other federal assistance are awarded and managed each year. The proposal would convert existing OMB guidance into formal binding regulations applying to all recipients of federal funding, including state and local governments, universities, nonprofits, public health organizations and hospitals. Key changes include:

• Making peer review advisory rather than determinative in grant award decisions and requiring additional review by senior political appointees for discretionary awards.
• Expanding agencies' discretion to award or terminate grants based on administration priorities or the national interest.
• Imposing new restrictions on some international research collaborations and funding involving designated foreign countries or entities.
• Prohibiting the use of federal funds for certain activities related to diversity, equity and inclusion (DEI) that violate anti-discrimination laws or for the promotion of "gender ideology," as defined by the proposed rule.
• Limiting allowable expenses, including some publication, conference and professional membership costs, unless specifically authorized.
• Converting existing government-wide grant guidance into binding regulations, making future changes subject to the federal rulemaking process.

The proposal has drawn significant attention from higher education and research institutions across the country, many of which are coordinating responses through national organizations, including the Association of American Universities (AAU) and the Association of Public and Land-Grant Universities (APLU), whose memberships include the major Kansas research universities. KHI will continue monitoring this proposed rule as the public comment period closes on July 13, 2026. OMB indicated it intends to publish a final rule that would be effective Oct. 1, 2026.

Read the proposed rule here: Regulation for Federal Financial Assistance

Read more from Governing: Big Changes on the Horizon for Federal Grants

Read more from AAU: OMB Proposes Major Changes to How the Federal Government Funds Scientific Research

Read more from APLU: Resources on OMB's Proposed Changes to Federal Funding

Read the public comments here: Document Comments

Stay tuned for further updates on policy shifts that may affect health programs and services in Kansas. For related work on how federal policies could impact Kansans, please check out Hill to the Heartland.