MassBio CEO & President Kendalle Burlin O’Connell originally posted this update to LinkedIn:
Washington wrapped up some significant business before the holiday recess, while likely leaving other debates for the new year. Here’s what matters for Massachusetts biotech heading into 2026.
- House GOP Health Care Package: The House narrowly passed the Lower Health Care Premiums for All Americans Act on December 17 (216–211), a GOP health package focused on workplace coverage, marketplace mechanics, and advancing PBM reforms. The bill would need support from Democrats in the Senate, making passage unlikely at the moment. Notably, it does not extend the enhanced ACA premium tax credits set to expire Dec. 31, likely making it a continued focus of healthcare conversations in DC next year as both House and Senate are set to head into recess. MassBio has long advocated for PBM reforms which could improve drug pricing dynamics for patients, so its inclusion in this package is a welcome sign and a good marker for continued healthcare discussions next year.
- NDAA Passes Senate; Headed to President Trump for Signature: The Senate passed the FY2026 National Defense Authorization Act on December 17 (77–20), clearing the way for President Trump to sign it into law. For biotech, the bill both expands DoD’s bioindustrial posture (including new structures and authorities to build domestic capacity) and advances an updated “BIOSECURE” framework that restricts federal contracting and federal grant/loan dollars from flowing to or being used with designated “biotechnology companies of concern.” As the legislation moves into implementation, Massachusetts companies and research institutions that rely on federal R&D dollars or government contracts will need to closely track their suppliers to ensure they are not caught off guard by this new framework. MassBio will be monitoring actions emerging from the newly established Biotechnology Management Office at DoD to determine its implications for early-stage biotechs.
- House E&C O&I hearing on “AI + Biology”: The Energy & Commerce Oversight & Investigations Subcommittee held a hearing on “Examining Biosecurity at the Intersection of AI and Biology” focused on how rapidly advancing AI can expand biomedical breakthroughs while also increasing risks of misuse. Witnesses warned that “biology is the new strategic domain”, arguing that as AI-enabled biotechnology gets cheaper and more accessible, the U.S. and allies are not yet prepared for the scale of future biological threats. Recommendations focused on practical guardrails, including building real-time “biological intelligence” and a persistent detection network, tying federal dollars to compliant providers, investing in domestic DNA manufacturing/supply-chain resilience, and developing AI-enabled risk assessment tools. Additionally, recommendations emphasized strengthening the public-health and research backbone needed to respond quickly when outbreaks occur.
- China Biotech Growth Amidst Congress’ Focus on Biotech as National Security: A recent analysis drawing on data from the Clinical Drug Experience Knowledgebase (CDEK) argues China’s drug-discovery output has risen dramatically, from roughly ~30 new medicines in 2013 to 400+ a decade later, reaching near parity with the U.S., whose output has been comparatively flat in recent years. As outlined above, Congress is increasingly responding to this competitiveness frame by shifting its policy focus increasingly toward security and supply-chain assurance alongside innovation. MassBio will work to shape implementation in a way that protects U.S. leadership without creating compliance burdens that hinder research, clinical progress, or manufacturing in Massachusetts.
- Bayh-Dole at 45: The Bayh–Dole Act was enacted 45 years ago this week, on December 12, 1980. It established the modern tech-transfer framework by allowing universities, nonprofits, and small businesses to retain and license patent rights for inventions developed with federal R&D funding. Before Bayh–Dole, the federal government typically held title to these inventions and very few were licensed, limiting the pathway from lab discovery to real-world products. Bayh–Dole is a cornerstone of Massachusetts’ innovation engine, powering the university-originated IP that feeds startups, partnering, and investment across Boston and beyond. Preserving a predictable patent system remains a key priority for MassBio, especially in the face of current threats of new fees on patent royalties being considered by the Administration.