House Oversight Wants to Strip DC of Home Rule

Why It Matters

The House Oversight and Government Reform Committee advanced a package of bills on July 22, including sweeping changes to pharmacy benefit manager rules, congressional veto power over D.C. taxes, and a proposal to dismantle the federal inspector general oversight council.

Chairman James Comer offered substitute amendments to five bills, signaling his tight control over the committee's agenda under Republican leadership.

The Big Picture

The pharmacy benefit manager (PBM) bill, H.R. 6610, continues a bipartisan push against PBM practices that have drawn fire from both parties. The federal government and state officials have documented how pharmacy benefit managers, companies that manage drug benefits for insurers and health plans, have driven up prescription drug costs through opaque pricing and steering patients to their own pharmacies. The Office of Personnel Management's Office of Inspector General found that CVS Caremark alone overcharged a federal employee health benefits program insurance carrier more than $615 million.

Congress enacted initial PBM restrictions in early 2026, and H.R. 6610 narrows the rules further by requiring transparent reimbursement rates, point-of-sale rebate application, and prohibiting PBMs from steering patients to their own pharmacies. The bill is supported by over 60 state and national pharmacy groups, and state pilots have shown cost reductions: West Virginia's insurance commissioner's office demonstrated that similar policies reduced premiums, while Georgia's state auditor projects millions in annual savings.

The D.C. Taxing Authority Review Act, H.R. 9720, represents a sharper partisan divide. The bill would require congressional approval for any tax or fee increase passed by the D.C. Council. It comes after Janeese Lewis George, described as a democratic socialist, won the D.C. Democratic mayoral primary on June 16, 2026. House Republicans cited a "socialist takeover" in their push to block D.C. from raising taxes. The move has sparked fierce local resistance: D.C. Councilmember Robert White said the bill would "take control of the District's taxes, fees, and budget away from the leaders D.C. residents elect and hand it to members of Congress who don't represent the city."

The third major bill, H.R. 9725, would abolish the Council of the Inspectors General on Integrity and Efficiency (CIGIE) within one year of enactment. The Trump administration defunded CIGIE at the start of fiscal year 2026, forcing it to furlough 25 employees and temporarily cease operations. At least 15 government oversight websites went dark as the Office of Management and Budget (OMB) withheld funds. By March 2026, a Trump-aligned Veteran Affairs (VA) Inspector General was set to take CIGIE's lead position uncontested. The move follows the Trump administration's attempt to dismantle CIGIE completely in September 2025.

Pharmacy Benefit Managers Face Tighter Rules

Support for H.R. 6610 splits along predictable lines. The Pharmaceutical Care Management Association (PCMA) called it a taxpayer giveaway. PCMA President and CEO David Marin framed it as "a huge cash transfer from taxpayers to pharmacists and nothing more," arguing it mandates minimum reimbursement rates with no added benefit to enrollees.

But opposition extends beyond the industry. Rep. Andy Barr of Kentucky, a Republican, said the Government Employee Health Association and the mail handlers benefit plan have voiced opposition, citing concerns that the bill would interfere with mail order pharmacy options that help control costs. Rep. Eric Burlison of Missouri, also a Republican, announced his opposition after serving on the board of Missouri Consolidated Insurance, saying he had changed his mind about whether PBMs were the problem.

The Federal Trade Commission cracked down on some PBM activities and found that they artificially raised drug prices in some cases.

D.C. Governance Becomes Flashpoint

Chairman Comer stated that "radical D.C. Democrats want to solve their spending problem by reaching deeper into taxpayers' pockets and driving further on the path to socialism. The Constitution gives Congress clear responsibility over the nation's capital, and we must prevent the D.C. Council's reckless fiscal policies from jeopardizing its future."

Opponents argue the bill infringes on decades of home rule. The advocacy group Free DC called for a boycott of DoorDash after the company reportedly spoke in favor of the legislation. Local advocates have pushed back against what they describe as Congress's latest attempt to block a local law on District taxes.

Inspector General Council in the Crosshairs

The committee also advanced H.R. 9643, the Comment Integrity and Management Act, which requires federal agencies to verify that public comments submitted during the rulemaking process come from humans rather than computers. Rep. Clay Higgins reintroduced the bill on July 16, six days before the markup. Higgins stated the bill would "protect the federal rulemaking process by requiring agencies to verify that public comments are submitted by humans," while providing "federal agencies with the flexibility and tools necessary to efficiently manage public comments."

The committee also renamed the D.C. Tuition Assistance Grant Program after Eleanor Holmes Norton, the longtime D.C. delegate, and advanced ten postal facility naming bills honoring figures including Navy aviator Captain E. Royce Williams, the Tuskegee Airmen, WWII veteran Colonel Edward Shames, and 9/11 first responder Detective Luis G. Alvarez.

The Bottom Line

H.R. 9720 signals Republican willingness to override local governance in the nation's capital. H.R. 9725 would complete the administration's dismantling of independent federal watchdog authority, a move that has already drawn criticism from government accountability advocates.

All bills advanced from the markup and now face votes before the full House. H.R. 6610 has the broadest coalition behind it and may move quickly. H.R. 9720 will likely face Democratic opposition on the House floor. H.R. 9725 faces sustained pressure from government oversight organizations.

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