Press Release: 2/6/2026
CEO Innovation Policy Update 02.05.26
FEB 05, 2026
MassBio CEO and President Kendalle Burlin O’Connell originally posted this update to LinkedIn.
With FY26 appropriations now signed and the shutdown behind us, the focus has quickly turned to what’s next for federal science policy. This week brought a pivotal Senate hearing on modernizing NIH, open questions about the impact of forward funding on early-career researchers, and an SBIR reauthorization that remains frustratingly stalled.
1) FY26 NIH Appropriations: After a brief partial government shutdown over the weekend, Congress has now passed (and the President has signed) FY26 appropriations. This package includes a $400 million increase for NIH, a welcome step that reinforces the basic truth we hear every day from our members: stable federal research investment is the front end of America’s biomedical pipeline, training talent, de-risking early science, and enabling private capital to step in and scale breakthroughs. In our statement, we shared, “A $400 million increase in NIH funding sends a clear signal that Congress recognizes the essential role federal research investment plays in driving discovery and, ultimately, delivering cures.” The package also enables NIH to continue multi-year funding of awards at the same levels seen in FY25 (roughly 40% of awards were forward funded). We have concerns about this change and its impact on funding opportunities, especially for early-career researchers, and will continue to engage with legislators to address impacts.
2) Significant Win for PBM reforms and Rare Pediatric PRV reauthorization: The package didn’t just address budgets. It also included PBM reforms and a reauthorization of the Rare Pediatric Disease Priority Review Voucher (PRV) program, two areas MassBio has consistently advocated for. MassBio released a statement acknowledging these wins, “We are also encouraged to see Congress act on PBM reform and the reauthorization of the Rare Pediatric Disease Priority Review Voucher, which incentivizes the development of treatments for children facing the rarest and most devastating diseases. While today marks meaningful progress, important work remains.”
3) Senate HELP’s NIH modernization hearing (and MassBio weighed in): On February 3, the Senate HELP Committee held its hearing on “Modernizing the NIH: Faster Discoveries, More Cures.” Concerns over instability at the NIH were heard throughout the hearing, with many questioning the impact of grant disruptions, staffing vacancies, and multi-year funding on the biotech pipeline. NIH Director Jay Bhattacharya shares his priorities in his opening statement, including rebuilding public trust in NIH; increasing scientific rigor and accountability; and evolving, restructuring, and consolidating core functions to increase transparency and accountability. MassBio sent a letter ahead of the hearing emphasizing that “faster discoveries” depend on predictability, because uncertainty slows labs, delays hiring and projects, and weakens the discovery ecosystem that makes places like Massachusetts a global hub for life sciences.
4) SBIR talks slowly progressing: Finally, SBIR/STTR remains a priority for many of our members and for innovators nationwide. With the programs having been paused for more than 4 months now, uncertainty over the program’s future is a growing headwind for startups relying on non-dilutive R&D capital, especially in early, high-risk work where private financing can be hardest to secure. MassBio has been engaged with Members to press for a prompt reauthorization and hopes to see movement in the coming weeks.