The Trump administration’s FY 2027 budget proposal seeks to move 340B program oversight from HRSA to CMS, while significantly increasing its funding. This move could signal a major shift in federal drug pricing policy, reports 340B Report.
The proposed reorganization, which includes a 68% funding increase to $20.5 million for the Office of Pharmacy Affairs (OPA), has sparked intense discussion among stakeholders regarding future rebate models and program transparency. Reporter Shannon Young noted Advocates for Community Health’s (ACH) statement of support for the additional resources, as a funding boost is necessary to manage growing program complexity and protect 340B for health centers.
ACH emphasized that the increased funding enables greater accountability and ensures that “manufacturers aren’t unduly restricting covered entities.” For community health centers facing workforce shortages and Medicaid changes, the 340B program remains a “vital savings stream” that makes care possible for millions of patients.