HHS Tightens Grant Rules and Cracks Down on Health Data Blocking

Welcome back to your weekly HHS update, where we break down the biggest moves from the Department of Health and Human Services and what they mean for everyday life.

Kicking off with the top headline this week: HHS just dropped a major overhaul to its Grants Policy Statement, effective October 1, 2025, shifting all grants to the standard Uniform Guidance at 2 CFR Part 200. Feldesman reports this quietly updates budget rules—now you need prior approval for changes over 10% of the total budget, down from 25% of direct costs—and no-cost extensions must be requested at least 10 days before the budget period ends in the final year.

In leadership news, Secretary Kennedy and CMS Administrator Dr. Oz announced the new Federal Healthcare Advisory Committee. Dr. Oz said, "This committee was designed to drive modernization in the health care system and improve patient outcomes... we can’t wait to hear what they come up with!" It'll tackle Medicare, Medicaid, CHIP, and the Marketplace with experts in care, financing, and innovation.

HHS is also ramping up enforcement against health information blocking. Acting Inspector General Juliet T. Hodgkins declared, "Patients must have unfettered access to their health information as guaranteed by law. HHS-OIG will deploy all available authorities to investigate and hold violators accountable." The Office of Inspector General can now hit violators with up to $1 million fines per offense, prioritizing repeat-offender EHR developers.

For Americans, this means tighter grant oversight could slow some community health projects but ensure funds go further—impacting nonprofits and local clinics. Businesses face stiffer penalties for data blocking, pushing better EHR sharing to cut physician burnout and boost patient care. States get clearer rules for federal dollars, easing admin burdens.

Watch for committee recommendations this fall and grant tweaks rolling out October 2025. Dive deeper at hhs.gov/press-room or healthy.arkansas.gov for state ties. If you're in healthcare, report blocking at healthdata.gov.

Next week, eyes on KidneyX funding rollout. Stay engaged, listeners—your input shapes these changes.

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