The Trump Administration’s Proposed Budget Cuts to HHS

Overview of the Proposed Budget Cuts

The Trump administration has put forth a plan to reduce the budget of the Department of Health and Human Services (HHS) by approximately one-third and close several departments as part of a wide-ranging reorganization of federal health agencies. This plan, outlined in a draft budget document obtained by Healthcare Dive, includes significant changes that could have far-reaching impacts on the healthcare system.

Key Points of the Proposed Budget

If approved, the proposed budget would result in a significant overhaul of HHS. Secretary Robert F. Kennedy Jr. has already initiated a restructuring of the department, which includes reducing the workforce by 25%, consolidating divisions from 28 to 15, and cutting the number of regional offices in half.

The internal document reveals plans to eliminate various programs, such as Head Start, HIV/AIDS prevention initiatives, and mental health programs. Additionally, agencies like the Health Resources and Services Administration, the Substance Abuse and Mental Health Administration, and the Agency for Healthcare Research and Quality would face cuts under the proposed budget.

A new division called the Administration for a Healthy America, proposed by Kennedy, would consolidate some programs and receive $14 billion in budget authority. Overall, the HHS budget would be reduced from around $120 billion in fiscal year 2024 to about $80 billion in fiscal year 2026.

Implications of the Budget Cuts

The proposed budget would have significant implications for various aspects of healthcare. Funding for the National Institutes of Health and the Centers for Disease Control and Prevention would be slashed by roughly 40% and 44%, respectively. The plan also includes cuts to rural hospital programs and assumes a decline in ACA exchange enrollment due to the expiration of premium tax credits.

These deep funding cuts could lead to further turmoil within the federal health workforce. Thousands of HHS employees were recently laid off in a chaotic reduction-in-force, raising questions about the legality of the layoffs.

Conclusion

While the proposed budget cuts are still subject to approval by Congress, they represent a significant shift in the federal government’s approach to healthcare funding and organization. The potential impact on programs, research, and healthcare access is substantial, and stakeholders across the healthcare industry will be closely monitoring the developments surrounding the HHS budget.