On April 3, 2025, the Trump Administration released two revised policies on federal agencies’ use of AI and federal procurement. These new policies are intended to replace the principles and policies issued by the prior administration (in Executive Order 14110), which were rescinded on January 23, 2025 (EO 14179). Specifically, OMB Memorandum M-25-21, “Accelerating Federal Use of AI through Innovation, Governance, and Public Trust,” states that “[a]gencies are encouraged to harness solutions that bring the best value to taxpayers, increase quality of public services, and enhance government efficiency[,]” and charges agencies to “lessen the burden of bureaucratic restrictions and to build effective policies and processes for the timely deployment” of AI. It also identifies various health care use cases as being within the category of “high-impact AI” because of its expected use as a principal basis for agency decisions or actions, including but not limited to medically relevant functions of medical devices; patient diagnosis, risk assessment, or treatment protocols; and control of health-insurance costs and underwriting.
Further, OMB Memorandum M-25-22, “Driving Efficient Acquisition of Artificial Intelligence in Government,” replaces OMB Memorandum M-24-18 from the Biden Administration, and requires covered agencies - including the Department of Health and Human Services - to update internal acquisition procedures related to the review and risk analysis of planned acquisitions involving an AI system or service; to convene cross-functional agency official teams to coordinate acquisition decision-making processes; and to ensure use of appropriate contract terms for intellectual property (IP) rights in agency use of AI. These updates must be completed by December 29, 2025.