HHS to reexamine massive $89 billion contract awarded to California nonprofit: Report

The Department of Health and Human Services (HHS) is reportedly reconsidering a massive contract the National Cancer Institute awarded to a California nonprofit in January to operate a cancer research lab in Maryland.

The $89 billion award was given to the Alliance for Advancing Biomedical Research on January 17, just three days before former President Joe Biden left office. The nonprofit is also considered untested because it has not received or spent a penny since its inception in 2022, the Washington Free Beacon reported on Wednesday.

The HHS notified the Government Accountability Office earlier this month that it is reevaluating all the original bids for the contract, which means it could give the money to another company.

The organization is also tied to the University of California system, which Senate Judiciary Chairman Chuck Grassley has accused of using 40% of its federal funding for administrative purposes, and criticized for allegedly being vulnerable to China.

"It’s outrageous Biden’s NIH shoved a nearly $90 billion contract out the door just days before President Trump returned to office," Grassley told the Free Beacon. "Even worse, the money would have flowed to an organization that can’t clearly protect itself from adversaries like China. 

"I’m very glad HHS heeded my calls to reverse course and is now re-evaluating its initial proposal," he added. "I urge the department to ensure efficient use of taxpayer dollars as it works to defeat cancer and save lives."

Misty Severi is a news reporter for Just The News. You can follow her on X for more coverage.