Week of March 3 Regulatory Intelligence Recap

Trade Press and Regulatory Summary:

• All HHS workers given $25,000 voluntary buyout offer, source says - CBS News

  • All employees in the U.S. Department of Health and Human Services were notified Friday March 8 of the option to voluntarily resign in exchange for a $25,000 payment.

• Senate HELP Committee to Consider Nominations for NIH Director, FDA Commissioner - Senate Committee on Health, Education, Labor and Pension

  • On Thursday, March 13, the Senate Health, Education, Labor, and Pensions (HELP) Committee will consider the nominations of Dr. Jayanta Bhattacharya to be Director of the National Institutes of Health and Dr. Martin Makary to be Commissioner of the U.S. Food and Drug Administration.

• Rise in vaping is offsetting the US decline in smoking rates - Boston Globe

  • The number of US adults who exclusively smoke cigarettes decreased by 6.8 million between 2017 and 2023, according to the CDC’s Morbidity and Mortality Weekly Report. However, approximately 7.2 million adults started exclusively using e-cigarettes, according to the study.

• Modern Oral Tobacco Sees Boost in Units, Circana Data Reveals - CSP

  • Modern oral tobacco increased units 44% year over year in 2024 and now makes up nearly 6% of total tobacco dollar sales, according to a new report from Chicago-based market research firm Circana.

  • According to Circana data from the convenience channel for the 52-week period ending Dec. 29, cigarettes represent about 72% of the total category of dollar sales, down 4.2%. Smokeless tobacco represents growth of 13.5% capturing 14.4% of the total category of dollar sales. E-cigarette growth fell 8.4% with 8.2% of dollar sales.

• Exclusive: US health agency says employees can apply for early retirement - Reuters

  • The U.S. Department of Health and Human Services has authorized early retirement for eligible employees due to organizational restructuring.  

  • Employees must meet specific age and service requirements, and the offer is valid until March 14th.

   

• Consumer product regulators would get AI assist from House bill - FedScoop

  • A proposed House bill aims to equip consumer product regulators with AI tools to enhance product safety monitoring.

  • The pilot program would use AI to track injury trends, identify hazards, and monitor the sale of recalled or prohibited products.  

  • The legislation mandates collaboration with experts from various sectors and a report to Congress on the pilot's findings.  

• Trump FDA Pick Makary Endorses RFK Jr.’s ‘Radical Transparency’ - Bloomberg

  • Martin Makary, Donald Trump's FDA nominee, has expressed support for "radical transparency" within the agency, aligning with Robert F. Kennedy Jr.'s stance.

  • Makary aims to restore public trust in the FDA by emphasizing trusted science, transparency, and common sense.  

  • His statements were released prior to his senate commitee hearing.

• The Mysterious Billionaire Behind the World’s Most Popular Vapes - Bloomberg

  • Zhang Shengwei, the founder of Heaven Gifts, has built a global vaping empire, including popular brands like Geekvape and Lost Mary, and has a net worth of $2.9 billion.

  • His companies have faced criticism for disregarding regulations, particularly in the U.S. and UK, where they have been accused of selling non compliant products.

  • Zhang has remained very private, and has declined almost all interview requests.

• GSA tells agencies to terminate contracts with top-10 consulting firms - FedScoop 

  • The General Services Administration (GSA) has directed federal agencies to terminate contracts with the top-10 consulting firms, citing insufficient action following earlier reviews.

  • Agencies must submit lists of contracts to be terminated or maintained by March 7th, with those retained requiring senior official justification for their mission-critical nature and technical support.

  • This directive aims to reduce reliance on these firms and ensure that ongoing contracts are truly essential.

• Federal government looks to divest HHS, CMS headquarters as DOGE cancels leases - Fierce Healthcare 

  • The federal government plans to divest "non-core properties," including the HHS headquarters and CMS buildings, to reduce its real estate footprint.

  • The General Services Administration (GSA) has identified over 440 non-core assets, primarily office spaces, with significant recapitalization needs.

  • The divestment list includes the Hubert Humphrey Building (HHS), four CMS headquarters in Maryland, and parts of the FDA's White Oak campus and a regional office in Washington.

  • Update - This proposal was removed on March 5, 2025 so it is unclear if it will proceed.