Aug. 26 Federal Update: HHS Enhances Head Start with New Wage Increases for Staff

The U.S. Department of Health and Human Services (HHS), through the Administration for Children and Families (ACF), has introduced a significant new rule to strengthen the Head Start program by increasing staff wages and benefits. The rule, titled Supporting the Head Start Workforce and Consistent Quality Programming, will raise annual wages for most Head Start teachers by approximately $10,000, improving the program’s ability to recruit and retain qualified educators and ensuring consistent, high-quality early childhood education.

For nearly six decades, Head Start has provided essential early childhood education to children who are often furthest from opportunity. This new rule builds on the Biden-Harris Administration’s commitment to expanding and enhancing early childhood programs and sets the stage for further collaboration with Congress to secure sustained investments in Head Start.

HHS Secretary Xavier Becerra emphasized the importance of this rule, stating, “For too long, Head Start has relied on staff who are often paid poverty-level wages. This rule changes that, ensuring our most vulnerable children have access to essential educational opportunities.”

ACF officials highlighted that the rule addresses the staffing shortages which have plagued many Head Start programs by increasing wages, reducing turnover, and elevating service quality. ACF Deputy Assistant Secretary for Early Childhood Development, Katie Hamm, noted, “This rule is a critical step toward reversing the trend of classroom closures and putting Head Start on a sustainable path.”

Khari Garvin, Director of the ACF Office of Head Start, added that the rule incorporates feedback from the Head Start community, offering greater flexibility and tailored implementation for smaller programs while reducing administrative burdens.

Head Start programs operate in every state, numerous Tribal nations, and U.S. territories, delivering comprehensive services in early learning, health, and family well-being. Serving children from birth to age five, the program tailors services to local needs, ensuring children across the country receive the support and education they need to thrive.

Medicare Drug Price Negotiation Program

On Thursday, Aug. 15, the Centers for Medicare & Medicaid Services (CMS) announced the negotiated prices for the first ten prescription drugs, a key provision of the Inflation Reduction Act.

The adjusted prices will become effective for individuals enrolled in Medicare with Part D prescription drug coverage on Jan. 1, 2026. 

The negotiated prices are expected to increase access to some of the most expensive and most frequently dispensed drugs by reducing the prices between 38% and 79%. The medications treat critical conditions, including diabetes, heart failure, arthritis, and more. They had been prescribed to nine million patients with Medicare coverage in 2023, who paid $3.4 billion in out-of-pocket costs the previous year for these medications. The reduced prices are expected to alleviate a critical barrier, increasing affordability and access.

Individuals enrolled in Medicare with Part D prescription drug coverage are expected to save $1.5 billion in out-of-pocket costs. Meanwhile, the CMS reported a $6 billion reduction in spending following the negotiated prices.According to the Congressional Budget Office, if the policy continues to move forward as planned, the drug price negotiations are expected to save the U.S. government about $98.5 billion by 2031.

The Inflation Reduction Act includes vital provisions to generate further cost savings for Medicare beneficiaries. Annual out-of-pocket expenses will be capped at $2,000 in 2025, rebates will be provided if certain drug price increases outpace inflation, and out-of-pocket costs for vaccines will be eliminated.

Negotiations are expected to continue for up to 20 drugs covered under Part D or Part B every year through 2026. The U.S. Department of Health and Human Services Secretary Xavier Becerra stressed the importance by stating, “Empowering Medicare to negotiate prices not only strengthens the program for generations to come, but also puts a check on skyrocketing drug prices.”

While several lawsuits have claimed the negotiations exceed the federal government’s authority and violate pharmaceutical companies’ constitutional rights, all lawsuits have been denied to date. Social Current will monitor the appeals process and provide updates accordingly.

Sector Updates from the Judiciary

Florida Appeals Court’s Release of Investigative Report in Moeller v. Southeast Florida Behavioral Health Network

On Aug. 15, a Florida state appeals court overturned a lower court’s decision, which blocked the release of an investigative report concerning the completed suicide of an individual shortly following discharge from a mental health center.

Initial record requests were filed according to the Florida Public Records Act (FPRA) and denied due to the unproven claim the report was protected under an FPRA exemption for the medical review committee.

In providing the records to the individual’s family, the state appeals court affirmed their legal right to the report while upholding the family’s due process rights. 

Catholic Charities Appeals to U.S. Supreme Court for Religious Exemption

On Aug. 9, Catholic Charities of the Diocese of Superior Wisconsin appealed to the U.S. Supreme Court to reverse a previous decision issued by the Wisconsin Supreme Court. The ruling required the agency to participate in the state’s unemployment system, claiming they do not qualify for a religious exemption because their activities are not “primarily” religious.

Wisconsin law requires all employers to pay an unemployment insurance premium on behalf of their employees, granting their employees access to weekly unemployment benefits if they lose their jobs. Members of a religious order, employees of churches or their parent associations, and those who work for organizations operated primarily for religious purposes and are controlled by churches or church associations have historically been considered exempt from this law.

The Catholic Charities Bureau sought an exemption to participate in an alternate program, the Church Unemployment Pay Program, established by the Wisconsin bishops in 1986. The agency claimed the program provides equal benefits with greater efficiency, allowing them to direct their cost savings to further their mission and grow charitable efforts.

Nevertheless, the Wisconsin Supreme Court ruled the Catholic Charities Bureau does not meet the standard of operating primarily for religious purposes. The Court reasoned that the services can similarly be provided by organizations without a religious purpose, especially considering the agency hires and serves all individuals, regardless of religious affiliation.

The Catholic Charities Bureau claims the Wisconsin Supreme Court’s ruling impacts their First Amendment rights by penalizing their agency for engaging in parts of its ministry, including serving those in need without attempting to proselytize. Should the United States Supreme Court accept the case, their verdict would likely impact religious organizations’ ability to receive religious exemptions nationwide.

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