WASHINGTON — The Trump administration permanently filled four key leadership roles at the Food and Drug Administration on Tuesday, after it nominated Heidi Overton to lead the agency late last month.
Three of the officials are serving in an acting capacity, and will take the same roles permanently, the administration said. They are Michael Davis, a psychiatrist who will be director of the Center for Drug Evaluation and Research; former Merck official Karim Mikhail, who will be director of the Center for Biologics Evaluation and Research; and Bret Koplow, an attorney who has been at the FDA since 2011 and will serve as director of the Center for Tobacco Products.
The fourth appointee, Jared Seehafer, will serve as the FDA’s first deputy commissioner for technology and artificial intelligence. He joined the FDA as an adviser in 2025 after founding a life science software company and working in investment advising in biotech, according to his LinkedIn. Under the Trump administration, the agency has pushed its staff to use AI to speed up its review processes.
UnitedHealth Group’s top executives, including CEO Stephen Hemsley, and board members recently flooded the campaign coffers of Rep. Katherine Clark of Massachusetts, the No. 2 Democrat in the House who just beat two opponents in a closely watched primary.
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House Republicans canceled the last two weeks of their session in September, which means House lawmakers will have gotten at least 15 weeks off between Memorial Day and the midterms on Nov. 3. Send news tips and PTO requests to John.Wilkerson@statnews.com or John_Wilkerson.07 on Signal.
House Democrats’ agenda takes shape
In the week that the House was in town, a fuzzy outline of the health care agenda that Democrats are considering should they win back the House started to take form.
RFK Jr. adviser Calley Means and Kennedy’s son Finn attended the Enhanced Games, the pro-doping athletic competition and biohacking extravaganza that took place over the weekend in Las Vegas, according to The Washington Post. Send news tips and personal bests to John.Wilkerson@statnews.com or John_Wilkerson.07 on Signal.
Ripple effects
For weeks, Republicans have been preoccupied with an immigration funding bill that they’re pushing through Congress, without support from Democrats. I’ve not been writing about that bill because it doesn’t include health care policies. But it’s now becoming relevant to health care, albeit indirectly.
Early last week, Republicans were expected to pass that budget reconciliation bill without much friction. By the end of the week, Senate Republicans adjourned for a week-long recess without voting on it due to an impasse over a new $1.8 billion settlement fund for Trump’s allies. They’d also butted heads with the president over his demands for $1 billion for a White House complex and ballroom.
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$775 billion
Centers for Medicare and Medicaid Services
Republicans’ recent tax law targets supplemental Medicaid funds that have increasingly propped up hospitals. The cuts are expected to be even bigger than originally forecast, which almost assuredly will provoke an opposition campaign from hospitals.
The 79-year-old president spent more than three hours at Walter Reed National Military Medical Center for what the White House described as preventive medical and dental checkups. It was Trump’s fourth publicly disclosed medical exam since he returned to office for a second term, and it comes as he tries to project strength ahead of midterm elections that will test his sway with voters.
WASHINGTON — People in the food world didn’t know what to expect when the Trump administration appointed a little-known Florida attorney as the FDA’s top food official in 2025.
They knew Kyle Diamantas worked at Jones Day representing food, beverage, and tobacco-industry clients. They saw the picture of him and Donald Trump Jr. holding giant, dead wild turkeys after a hunt. He had no experience in public health, in medicine or science, or in government.
The credentials didn’t scream qualified. And Diamantas was stepping into a center rocked by DOGE layoffs and a defiant resignation by former leader Jim Jones.
Hospitals and other providers are bracing for an end to the extra money they’ve gotten for treating Medicaid patients, one of the many cuts contained in Republicans’ sweeping 2025 tax law.
But the Trump administration disclosed this week that it plans to take the cuts to state directed payments even further, setting up what’s likely to be a showdown with provider groups.
Since 2024, some hospitals, doctors, nursing homes, and other types of providers have been reimbursed for Medicaid services at much higher commercial rates, thanks to a Biden-era change. The One Big Beautiful Bill Act, passed in July, directs the Centers for Medicare and Medicaid Services to gradually trim those payments beginning in 2028 until they’re close to or on par with Medicare rates.
President Trump flew to Beijing, brought Jensen Huang along at the last minute, and left two days later, telling reporters that “something could happen” on chip exports. Nothing did. Not a single Nvidia H200 has shipped to China since Trump first authorised the sales in December 2025, and US Trade Representative Jamieson Greer told Bloomberg that semiconductor controls were not even on the bilateral agenda.
The summit theatre obscured a more interesting development underneath it. The H200 isn’t stuck because Washington won’t allow it. Washington already has allowed it. Roughly 10 Chinese firms, including Alibaba, Tencent, ByteDance, and JD.com, hold approved US export licences for up to 75,000 units each, with Lenovo and Foxconn authorised as distributors. The chips aren’t moving because Beijing won’t let its own companies take delivery.
Two frameworks, one deadlock
The mechanics of the stalemate are worth understanding clearly. US rules require that all H200 chips ordered by Chinese clients be used only in China. Beijing, meanwhile, has instructed Chinese tech companies to limit their use of Nvidia chips to overseas operations while supporting domestic manufacturing. The two requirements are mutually exclusive.
Chips cleared for export cannot legally be deployed where Beijing wants to deploy them, and Beijing won’t authorise the domestic use the US licences require, according to Implicator.
Commerce Secretary Howard Lutnick stated at a Senate hearing last month that Chinese firms are trying to keep their investment focused on domestic suppliers, including Huawei. Beijing’s State Council has also ordered a supply-chain security review aimed at cutting dependence on US semiconductors.
The policy contradiction is not accidental. That is the point.
What Huawei gained while diplomats talked
The days around the summit produced several data points that matter more for the long term than Trump’s parting comment. DeepSeek confirmed its latest model had been optimised to run on Huawei processors. Tencent’s chief strategy officer said Chinese GPU supply would increase progressively through 2026, and an Alibaba executive said its T-Head proprietary GPUs had achieved scaled mass production.
This follows the April launch of DeepSeek V4, which adapted the model for Huawei’s Ascend chips – the first major Chinese frontier model to do so in training, not just inference. What the summit week confirmed is that the shift is no longer experimental. It is now a supply-chain policy. Nvidia’s China revenue has fallen to roughly 5% in recent quarters, down from above 20% before export controls tightened. The company’s own guidance for the current quarter assumes zero revenue from China.
Huang’s last-minute inclusion in the delegation – Trump called him directly after seeing media coverage that he had not been invited – suggested urgency. The outcome suggested the limits of what CEO diplomacy can achieve when the obstruction is structural, not procedural.
The read for the AI industry
The stalemate matters beyond bilateral optics. Chinese AI platforms are now operating under a domestic mandate to build on Huawei’s compute stack. The question of which AI hardware architecture becomes dominant in the world’s second-largest AI market is being answered not by technical benchmarks but by government directive.
Beijing steering platforms toward Huawei Ascend chips rather than Nvidia H200S is not just a trade posture. It is a structural bet that the performance gap will close fast enough that being locked into the domestic stack is manageable. DeepSeek V4’s results suggest it may be right, at least for inference workloads.
Trump said something could happen. Greer said the decision is sovereign for China. Both are true, and neither changes the current position: the H200 deal is approved, licensed, and frozen, with Huawei filling the space it leaves behind.
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With thousands of illegal e-cigarettes for sale in the U.S., both the Trump and Biden administrations have vowed to crack down on the illicit fruit- and candy-flavoredvapes that hold particular appeal to minors. But a new government report suggests law enforcement efforts by the Department of Justice lag far behind the scope of the problem.
Most DOJ enforcement actions between fiscal year 2022 and fiscal year 2025 — 50 out of a total of 88 — were to add the names of remote e-cigarette sellers to a list of unauthorized businesses, according to the report from the Government Accountability Office. The second-most common type of enforcement actions (20 out of 88) noted in the report were injunctions to stop legal violations.
NEW YORK — President Donald Trump’s administration this week acknowledged it made a significant error in figures it used to help justify a fraud probe into New York’s Medicaid program, a glaring mistake that undercuts a federal campaign to tackle waste, mostly in Democratic-led states.
The error, one of at least a few misrepresentations in its description of the program, prompted health analysts to question how many of the Republican administration’s sweeping anti-fraud efforts around the country were based on faulty findings. It also reflected a common criticism that’s been made of Trump’s second administration — that it tends to attack first and confirm the facts later.
Zac Jiwa, a federal Medicare official, delivered a eulogy of sorts at a Thursday Medicare event highlighting the successes of the Health Tech Ecosystem initiative.
The eulogy’s subject? The clipboard.
For the past eight months, hundreds of health tech companies have been working to meet goals set out by the federal government to make patient records more portable, create systems that import patients’ data into providers’ electronic health records systems, and stand up various patient apps. The idea is to make filling out a stack of paperwork at every doctor’s visit, on that ubiquitous clipboard, a thing of the past.
After a courtroom defeat, Trump administration health officials have revised the governing documents for a key federal vaccine panel to broaden its membership, increase its focus on potential harms of vaccines, and empower allies of health secretary Robert F. Kennedy Jr.
The new charter for the committee that advises the Centers for Disease Control and Prevention on vaccine use appears aimed at trying to evade the type of legal challenge that has left the currently appointed body in limbo. In addition, the document puts greater emphasis on the role of the Advisory Committee on Immunization Practices in studying injuries possibly linked to vaccination — though the committee has always paid close attention to any emerging evidence that called into question the safety of individual vaccines.
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In which RFK Jr. says the “government lies to us” while sitting in front of an HHS seal. Send news tips and podcast recommendations to John.Wilkerson@statnews.com or John_Wilkerson.07 on Signal.
First, control health care costs
Last month, a group of 12 Senate Democrats proposed a framework for rebuilding the health care system. The idea was to spur input from others ahead of when Democrats might get a chance to act on those plans.
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The 2027 budget that the Trump administration released on Friday is in many ways a repeat of last year’s proposal: It includes deep cuts to the National Institutes of Health, the elimination of a health research agency, and the creation of a new agency devoted to chronic diseases called the Administration for a Healthy America.
WASHINGTON — The Food and Drug Administration used the president’s budget to propose policies aimed at encouraging domestic development and manufacturing of drugs.
FDA Commissioner Marty Makary has said the agency needs “giant, big ideas” to counter China’s dominance in early-stage clinical development of drugs. Among the FDA’s ideas are proposals to make it easier to run early-stage trials in the U.S. and to hand an advantage to U.S.-based generics manufacturers.
The Trump administration has been using a variety of policy levers to try and bring drug manufacturing to the U.S. For example, many of the brand drugmakers that struck deals to lower U.S. prices also promised to increase domestic manufacturing, under the threat of tariffs.
Companies that sell Medicare Advantage plans will receive a 2.5% pay bump on average in 2027, up significantly from what was proposed and a win for an industry that has experienced higher medical costs and has opposed nearly all reforms to the lucrative taxpayer-financed program.
More importantly, the Trump administration scrapped a proposal that would have used more updated data in the payment process, ensuring that Medicare Advantage insurers retain billions of dollars.
The finalized rate is estimated to add $13 billion in revenue next year for insurers, according to the Centers for Medicare and Medicaid Services. During trading after the markets closed, the stock prices of UnitedHealth Group, Humana, and CVS Health each climbed by more than 8%. Those companies are the three largest Medicare Advantage insurers, and together cover almost 60% of all people enrolled in the program.
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Today’s the day
By law, the 2027 Medicare Advantage payment regulation must come out today. It will set the tone for how the Trump administration wants to work with the health insurance industry: as the “new sheriff in town” or just another friendly regulator.
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