MassBio CEO and President Kendalle Burlin O’Connell originally posted this update to LinkedIn.
The Senate is racing to avert a government shutdown by Friday, with NIH funding (including a $400 million increase) hanging in the balance alongside key MassBio priorities like PBM reform and Rare Pediatric Disease PRV reauthorization. It’s a fitting backdrop to yesterday’s Policy Leadership Breakfast on Beacon Hill, where federal uncertainty loomed large even as we focused on state priorities. Here’s what we’re watching this week:
1) Looming Shutdown & HHS Budget: The Senate is racing to clear the remaining FY26 appropriations before funding expires at midnight Friday, though significant disagreements over DHS and ICE tactics are now the biggest obstacle. Earlier today, a funding vote failed in the Senate with a vote of 45-55; all Democrats voted no, along with eight Republicans. For biotech, the immediate watch-out for the looming shutdown is whether the Senate can get HHS funding, which includes a $400 million increase to NIH for FY26, over the finish line. PBM reform and reauthorization of the Rare Pediatric Disease PRV reauthorization, both MassBio priorities, are also included in the package.
2) Senate HELP Committee on Modernizing NIH: Speaking of NIH, Senate HELP Committee has scheduled a hearing for February 3 on Modernizing the NIH, with a focus on faster discoveries and more cures. MassBio will be closely watching for how Senators and NIH Director Jay Bhattacharya plan to achieve that goal. For MassBio and our members, the path forward is clear: keep NIH funding stable and predictable, award grants based on scientific merit rather than geographic distribution, and avoid untested approaches like “forward funding” that could introduce new uncertainty.
3) CMS Releases the “IPAY 2028” Negotiation List: CMS has announced the next set of drugs selected for Medicare price negotiations, with negotiations occurring in 2026 and the negotiated prices effective in 2028. We will be tracking how IRA continues to lead to downstream impacts on R&D and launch strategy across the ecosystem. MassBio has long advocated for a fix to the IRA’s “pill penalty,” which subjects small-molecule drugs to negotiation sooner than biologics (9 years vs. 13). This cycle underscores why parity matters: four of the selected products were small molecules that would not have been on the table under a 13-year timeline.
4) Congress Keeps Spotlight on Healthcare Affordability: Last week, the House Energy and Commerce Health Subcommittee, House Budget Committee, and House Ways and Means Committee held separate hearings discussing healthcare costs and insurance affordability, most visibly with CEOs of major insurers testifying. Members repeatedly questioned the CEOs over issues with premiums, denials, consolidation, and transparency. Healthcare affordability will remain a dominant topic heading into the midterm cycle, and MassBio will continue to engage with lawmakers on PBMs, drug pricing, and broader affordability debates that will continue to shape the operating environment and investment climate for biotech innovators.
5) SEC’s Small Business Forum set for March 9: The SEC’s 45th Annual Small Business Forum is scheduled for Monday, March 9, 2026. The Forum provides a venue for the ecosystem to discuss barriers to capital access and identify policy solutions. This is an opportunity to reinforce what emerging biotechs need most: improving access to both public and private capital and reducing regulatory red tape that inadvertently raises costs for early-stage biotechs. MassBio will have a presence at this year’s Forum to ensure that these perspectives are front and center.