New Executive Directive Builds on the Trump Administration’s Deregulatory Agenda but is Unlikely to Impact Medicaid or Marketplace Spending

Support for this expert perspective was provided by the State Health and Value Strategies program, a grantee of the Robert Wood Johnson Foundation. The views expressed here do not necessarily reflect the views of the Foundation.

March 6, 2025

On February 26, President Trump signed an executive order (EO), “Implementing the President’s ‘Department of Government Efficiency (DOGE)’ Cost Efficiency Initiative.” The EO introduces new requirements and limitations for “covered contracts and grants,” defined as discretionary spending through “federal contracts, grants, loans, and related instruments,” subject to certain exceptions. The EO is in line with the Trump administration’s focus on scrutinizing all federal spending for alignment with the administration’s priorities.

An expert perspective by Manatt Health’s , and discusses the potential impacts of the EO, including directives for federal agencies regarding covered contracts and grants as well as implications for states.

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