WHITE HOUSE:

Over the last week the White House strengthened customs enforcement, reduced the tariffs on some steel and other metal imports, and “reclassified” approximately 8,000 career positions to make it easier to remove them (the list of positions is available here (PDF), although deciphering it appears to be quite complicated). One item of interest for us:

• The President  finally issued his long-awaited Executive Order on AI that directs federal agencies to prioritize AI in cybersecurity, among other goals. One key point is that the order calls for the development of a “voluntary framework” within which AI companies would share their most advanced models with the government 30 days before they go public. The full text is here.

CONGRESS:

After weeks of back-and-forth, at nearly 5 AM Friday morning, the Senate finally passed the Reconciliation bill that will fund immigration enforcement for the next few years. The late passage meant that the House had already left town for the weekend, but they’re expected to take up the bill this week. With passage expected, all eyes are turning to a third Reconciliation bill, although it remains unlikely at this point. With funding mostly wrapped up (famous last words…), Congress turns its attention to other priorities. Elsewhere in the political world:

• One thing remained clear with the immigration vote this week: despite rising frustration with the President, and a Senate leader that is quietly making his discontent known, when push comes to shove, the Senate supported the President’s agenda.

  
  

• Having said that, the mounting tensions making things harder for the GOP as we get closer to the midterms.

  
  

• A new bipartisan AI bill was introduced in Congress that would preempt state laws and require early disclosure of new models. It didn’t take long to face criticism from, well, pretty much everyone.

  
  

• It was a glass half-full, half-empty type of week for Democrats, who have reason for optimism in Iowa, but have a real candidate problem in Maine, which votes this Tuesday.

  
  

• Congressional members running for statewide office continue to underperform at the ballot; perhaps a sign that being part of Congress doesn’t inspire voter confidence.

  
  

• While we often talk about money in politics, it’s important to remember that just being well-funded is no guarantee of electoral success, a point underscored this week by the dismal performance of quite a few candidates heavily supported by big tech.

  
  

• With redistricting mostly in the books, Axios explored what it all means for Democrats.

  
  

• With stopping fraud all the rage in DC these days, the CRS posted an updated guide for Congress on ‘Improper Payments’.

AGENCIES:

CMS released an interim final rule that outlines the national framework for implementing Medicaid work requirements. The fact sheet is here. The full rule can be found at the Federal Register, where comments can be submitted through July 31^st.

The OIG at HHS performed an audit on Medicare Advantage, finding that CMS potentially overpaid MA plans more than $460 million for unsubstantiated claims related to stroke claims. The summary is here (PDF) while the full report is here (PDF).

Following the recent push by the task force on fraud, we’ve got our first casualty for a state’s Medicaid Fraud Control Unit. The OIG at HHS sent a letter (PDF) to Hawaii announcing that they’re cutting funding to the state as they haven’t brought a single fraud indictment in the last four years. The state announced their response as they seek to recapture the funding.

The President wrote on his Truth Social account that TrumpRX.gov has added another 160 prescription drugs.

The GSA released a new automation playbook for federal agencies on how to optimize and deploy new automation programs within the agencies. The playbook is here.

FROM THE NOTEBOOK:

• On the final day of legislative session, Illinois passed its budget. The Medicaid section of the budget bills can be found here.

  
  

• Florida became the first state to sue an AI company, as they filed a lawsuit against Open AI & CEO Sam Altman for “deceptive practices”. For those so inclined, the full complaint can be found here (PDF).

  
  

• While not geared at healthcare, Illinois passed a law banning private equity ownership of law firms. The Wall Street Journal has a good summary.

  
  

• The Kaiser Family Foundation released their 2026 survey of MA enrollment update and trends.

  
  

• JAMA released a study exploring I-SNP’s and their potentially positive impact for residents with dementia. McKnight’s has a good summary.

  
  

• With Medicaid budgets around the country tightening, states are taking a long, hard look at insurance companies.

  
  

• Pharma companies are challenging Colorado’s state level drug price cap, a first-in-the-nation effort to cap drug prices at the state level.

  
  

• A good read from The Wall Street Journal on how the President is getting deeply involved into how regulations are crafted in the current Administration.