• District of Columbia: The White House Office of Management and Budget (OMB) on Wednesday rescinded a memo freezing federal funding and grants. The memo, which was initially issued on Monday, led to widespread confusion from states, schools, and healthcare organizations. Two lawsuits were filed against the memo by multiple state attorneys general and several healthcare organizations, leading U.S District Judge Loren AliKhan to temporarily block the spending freeze. On Wednesday, OMB formally rescinded the memo following uproar from both Republican and Democratic lawmakers. "This action should effectively end the court case and allow the government to focus on enforcing the President's orders on controlling federal spending," said White House press secretary Karoline Leavitt. However, Leavitt added that the federal funding freeze remains in "full force and effect" despite the recission of the OMB memo. So far, it is unclear what federal funding will remain frozen and how it will impact organizations across the country. (Bolton, The Hill, 1/30; Mangan/Breuninger, CNBC, 1/29; Megerian, Associated Press, 1/29)
• Massachusetts: Sage Therapeutics has rejected an "unsolicited" $469 million buyout offer from Biogen. According to Sage, the offer "significantly undervalues" the company and is "not in the best interests of shareholders." Biogen and Sage have collaborated since 2020, and Biogen currently owns 10.2% of Sage. In response to Biogen's buyout offer, Sage filed a lawsuit seeking a "temporary restraining order to preserve our rights and enforce the standstill provision previously agreed to with Biogen." In the companies' original agreement, Biogen said it would not acquire Sage's securities or seek a merger between the companies. Currently, Sage is planning to explore a "broad range" of options to maximize its value to shareholders, including a potential strategic transaction, a business combination, or a sale. (Becker, Fierce Pharma, 1/27)
• North Carolina: UNC Health and Duke Health have agreed to build a freestanding children's hospital in the Piedmont, North Carolina, area. According to Modern Healthcare, the health systems plan to build a 500-bed children's hospital, a pediatric outpatient center, and a children's behavioral health facility. The project, which includes a $320 million investment from the state, is expected to break ground in 2027 and take six years to complete. Lisa Goodlett, CFO of Duke Health, said the two health systems did not have enough specialists to staff a children's hospital on their own. "This will be the first free-standing, independent children's hospital in the state of North Carolina," Goodlett said. "That took a lot of understanding with the Medicaid program to show this business is now very valuable to both parties." (Kacik, Modern Healthcare, 1/28)

The 2024 elections are behind us — but the future of the healthcare policy landscape remains uncertain. Follow our coverage to learn how the new administration is approaching healthcare, how key state-level ballot initiative decisions could impact national health policy, and more.