The first quarter of 2026 has already brought significant changes to the healthcare landscape, from federal funding wins for clinician wellbeing to the expansion of licensure in compacts in New Mexico and North Dakota. Congress extended telehealth authorities and states like Kansas and Mississippi redefined professional conduct and scope of practice. Stay informed with these changes and more in our latest government relations update.
Federal Activity
Congress advances healthcare priorities following brief shutdown
Following a brief four-day government shutdown, Congress enacted an omnibus appropriations package funding federal agencies through September and the Department of Homeland Security through February. Beyond maintaining government operations, the legislation includes several meaningful provisions that strengthen patient access, support providers, and reinforce community-based care delivery.
Key healthcare-related provisions include:
- Telehealth access: Extension of Medicare telehealth authorities through 2027, preserving flexible care delivery options and sustaining access for beneficiaries nationwide.
- Provider wellbeing: Reauthorization of the Dr. Lorna Breen Health Care Provider Protection Act through 2030, continuing federal support for clinician mental health and burnout prevention initiatives.
- Workforce planning & data: Direction to HRSA to develop a graduate medical education data dashboard to better inform long-term healthcare workforce planning.
- Expanded support: Recognition of naturopathic physicians for CMS reporting purposes, $3.5 million in funding to advance telehealth innovation, and sustained focus on behavioral health, mental health, and rural health priorities.
- Pharmacy oversight: Targeted reforms to pharmacy benefit managers (PBMs) aimed at enhancing transparency and accountability within the prescription drug supply chain.
Collectively, these provisions signal continued bipartisan recognition of the importance of access, workforce sustainability, and system integrity in federal healthcare policy.
Telehealth and Digital Health Policy
Mental health and controlled substances access
Representative Neal Dunn (R-FL) introduced the Mental Health TALK SAFE Act of 2026 (H.R. 6994), which would amend the Controlled Substances Act to facilitate telehealth treatment for mental health and opioid use disorders.
The proposal would:
- Allow eligible clinicians to prescribe controlled substances via telehealth for specified conditions without obtaining separate DEA registration.
- Prohibit pharmacists from declining to fill a prescription solely on the basis that it was issued through telehealth.
Artificial intelligence in healthcare administration
The AI in Health Care Efficiency and Study Act (H.R. 7064), introduced by Pablo Hernandez (D-PR), would require HHS to conduct a comprehensive study on the use of artificial intelligence in healthcare. The review would focus on opportunities to streamline administrative processes while safeguarding patient privacy and data security.
Veterans Affairs (VA) Reform
Senator Richard Blumenthal (D-CT) introduced The Honor Our Promise to Veterans Act of 2025 (S. 3466), a sweeping proposal aimed at modernizing the VA healthcare system.
The legislation would:
- Establish clearer appointment access standards, incorporating telehealth into access-to-care determinations.
- Strengthen data reporting and quality standards for community providers serving veterans.
- Expand scope and authority for certain providers within the VA system.
- Invest in recruitment, retention, and workforce development through improved compensation, hiring incentives, and educational benefits.
- Commit more than $100 billion over ten years toward infrastructure modernization, including long-term care facilities, climate resilience upgrades, and enhanced capital asset planning and reporting.
Medicare Innovation: Artificial intelligence in program integrity
On January 1, the Centers for Medicare & Medicaid Services (CMS) launched the Wasteful and Inappropriate Service Reduction (WISeR) Model, a six-year pilot operating in Arizona, New Jersey, Ohio, Oklahoma, Texas, and Washington.
For the first time, artificial intelligence (AI) will be used to assist in Medicare pre-authorization decisions for select procedures identified as higher risk for fraud, waste, or abuse, including certain skin substitute applications and diagnostic knee procedures.
This initiative represents a significant evolution in Medicare program integrity efforts. As AI becomes more integrated into coverage determinations, maintaining transparency, accountability, and patient-centered safeguards will be essential. Stakeholders will be closely monitoring how CMS balances technological innovation with due process and timely access to medically necessary care.
2026 State Legislative Updates
Continuing Medical Education (CME)
- Tennessee — SB 2239 / HB 2562: Requires the state Boards of Medical Examiners and Osteopathic Examination to include at least one hour of continuing medical education focused on nutrition.
Licensure Compacts
- New Mexico — SB 1: Enacted February 5; enters New Mexico into the Interstate Medical Licensure Compact (IMLC), effective May 20, 2026. New Mexico becomes the 45th jurisdiction and 43rd state to join.
- North Dakota — HB 1622: Enacted and effective January 23; enters North Dakota into the PA Licensure Compact.
Telemedicine
- Hawaii — HB 2558: Authorizes out-of-state physicians to provide telemedicine services to Hawaii residents on a temporary basis, provided the physician practices within their scope, the service is unavailable in Hawaii, the patient is physically located in Hawaii, and the service is lawful in the originating state.
Professional Conduct and Reporting
- Arizona — HB 2660: Clarifies the definition of misconduct as any action that deceives or defrauds a patient or poses a direct threat to patient safety.
- Hawaii — SB 2086: Requires healthcare professionals to report any legal or administrative complaint, claim, or damages action filed against them to the appropriate Board within 30 days.
Kansas Nursing Board Reform
In Kansas, HB 2528, by Representative Pickert, a retired nurse, continues to advance following a strong bipartisan vote in the House on February 19, 2026 (88–34). The legislation proposes sweeping reforms to the regulatory authority and disciplinary processes of the State Board of Nursing, with a clear emphasis on transparency, due process, and clinical relevance.
Key provisions of Kansas HB 2528 include:
- Refocused disciplinary standards: Nullification of prior disciplinary records related to non-practice violations and a narrowed definition of “unprofessional conduct” to actions directly involving patient care.
- Enhanced oversight and accountability: Senate confirmation required for board members and explicit prohibitions against retaliatory action toward nurses who exercise their legal rights or publicly criticize the agency.
- Administrative modernization: Expedited license renewal processing, mandatory digital notifications, and required renewal notices at defined intervals.
- Continuing education compliance: Verification of continuing education requirements at the time of license renewal.
- Licensee protections: Creation of a private cause of action for licensees harmed by board misconduct.
- Operational improvements: Establishment of a formal late-renewal pathway and mandatory refunds for applicant overpayments.
Mississippi Scope of Practice Legal Battle
On January 20, the American College of Nurse-Midwives filed suit against the Mississippi State Board of Medical Licensure, challenging statutory and regulatory requirements that mandate certified nurse-midwives operate under physician supervision to provide labor and delivery services.
The plaintiffs argue that these collaboration requirements are anticompetitive and unnecessarily restrict access to care. The case underscores ongoing national debates surrounding scope of practice, interprofessional collaboration, and the regulatory frameworks that shape healthcare delivery.
For healthcare stakeholders, this litigation serves as a reminder that scope-of-practice policy remains a dynamic and consequential area of state-level reform, with direct implications for workforce utilization and patient access.
Stay Ahead with Us
As legislative sessions move forward and new mandates take shape, staying compliant shouldn’t feel like a moving target. At Propelus®, we believe that tracking policy is about spotting the trends that will redefine healthcare delivery.
The regulatory landscape is a leading indicator of our industry’s future. By monitoring these shifts in real-time, we help you stay ahead of the curve, transforming emerging policy trends into a competitive advantage. Our technology is designed to turn complex state requirements, like the electronic tracking mandates in New Jersey, into seamless, automated workflows before they take effect.
Through Propelus CE Broker®, we provide the vital infrastructure that connects boards, professionals, and employers in a single, secure ecosystem. In an evolving 2026 landscape, you need a partner who doesn’t just react to change, but anticipates it. We are dedicated to ensuring your workforce is not just qualified and compliant with CE, but strategically positioned for whatever comes next.