Pharmaceutical, hospital, and insurance groups spent record amounts on Washington lobbying last year as the Trump administration pushed for lower healthcare costs and overhauled federal health policies, according to a report by Politico.
The Pharmaceutical Research and Manufacturers of America (PhRMA), the leading trade group for brand-name drugmakers, led the surge with nearly $38 million in spending, a 22% increase from 2024. This represents the highest annual total on record for the organization.
Individual pharmaceutical companies also intensified their efforts. Nine of the 13 U.S. drugmakers on the Fortune 500 list, including Eli Lilly, Johnson & Johnson, and Merck & Co., reported their highest spending in at least a decade. Bristol-Myers Squibb saw the most dramatic spike, nearly doubling its annual investment to $10 million, a 91% change from the previous year.
Other healthcare sectors followed suit:
- The American Hospital Association (AHA) spent a record $25.5 million.
- America’s Health Insurance Plans (AHIP), representing major insurers like CVS Health and Cigna, reached a record $17.2 million.
The record-breaking investment reflects a period of significant disruption in Washington. President Donald Trump has demanded that drugmakers negotiate pricing deals directly with the White House in exchange for tariff reprieve, with 16 companies having reached such agreements so far.
Meanwhile, Health Secretary Robert F. Kennedy Jr. has overhauled the nation’s vaccine policy, including removing shots from the childhood vaccination schedule. The administration has also sought to bypass insurers by ending certain Affordable Care Act (ACA) tax credits and extending Medicare drug price negotiations.
To navigate these changes, drugmakers have increasingly favored boutique lobbying shops with specialized skills and former high-level government connections. Firms such as Tarplin, Downs & Young and Todd Strategy Group have become top targets for acquisition by larger global agencies due to their unique influence.
In contrast to the broader industry trend, the Biotechnology Innovation Organization (BIO) saw its lobbying spending fall to $5.6 million last year, its lowest in nearly two decades, following multiple internal shakeups.