Coupled with "red flag" laws, this sounds like the beginning of a dystopian nightmare.
According to the Washington Post, the proposal is part of a larger initiative known as the Health Advanced Research Projects Agency (HARPA). The agency would operate under the Health and Human Services Department. According to the HARPA website, the agency would be modeled after the Defense Advanced Research Projects Agency (DARPA) that operates as a research arm for the Pentagon.
HARPA would work with private companies, other federal agencies, and academia, to coordinate and promote health-related research. According to the HARPA website, the federal agency would "develop biomedical capabilities – detection tools, treatments, medical devices, cures, etc. – for the millions of Americans who are not benefitting from the current system."