Trump Administration Proposes Major Cuts to HHS in FY 2026 Budget

In May 2025, the Trump administration unveiled its fiscal year 2026 budget proposal, introducing substantial funding reductions and structural reorganizations within the U.S. Department of Health and Human Services (HHS). The proposal aims to decrease HHS's discretionary spending by approximately 26.2%, reducing the budget from $127 billion in FY 2025 to $93.8 billion in FY 2026.

The proposed budget outlines significant cuts to key agencies, including a 40% reduction for the National Institutes of Health (NIH) and nearly 50% for the Centers for Disease Control and Prevention (CDC). It also introduces the creation of the Administration for a Healthy America (AHA), consolidating functions from multiple existing agencies. These changes have sparked concerns among public health experts about potential impacts on research, disease prevention, and health services delivery.

Background:

The Department of Health and Human Services is a federal agency responsible for protecting the health of all Americans and providing essential human services. Key components include the NIH, CDC, Health Resources and Services Administration (HRSA), and Food and Drug Administration (FDA). This level of restructuring and budget reduction within HHS is unprecedented. While previous administrations have proposed budget cuts, the scale and scope of these changes are notably extensive.

Supporting Details:

• NIH Cuts: The budget proposes reducing NIH funding from $47.2 billion to $27.9 billion, consolidating 27 institutes into eight new entities, such as the National Institute on Body Systems and the National Institute on Neuroscience and Brain Research.

• CDC Reductions: A proposed cut of nearly 50% would reduce the CDC's budget from over $9 billion to approximately $5 billion. The plan involves eliminating the National Center for Chronic Disease Prevention and Health Promotion and transferring certain functions to the newly formed AHA.

• HRSA Changes: The proposal includes the elimination of 14 health workforce programs under Title VII and VIII, as well as the Children's Hospital Graduate Medical Education program. However, it proposes increases for the Teaching Health Centers Graduate Medical Education and the National Health Service Corps.

• Creation of AHA: The budget outlines the establishment of the Administration for a Healthy America, a new agency intended to coordinate public health programs focused on chronic disease, primary care, prevention, and behavioral health. The AHA would consolidate functions from HRSA, the Substance Abuse and Mental Health Services Administration (SAMHSA), and other public health offices, receiving $20.6 billion in funding.

Quotes:

HHS Secretary Robert F. Kennedy Jr. announced that he has rehired 942 employees previously laid off from the CDC and NIH—722 at the CDC and 220 at the NIH. These reinstatements come in response to the agencies' inability to fulfill their functions post-layoffs. Kennedy, who had pledged to overhaul the nation’s health agencies by reducing 10,000 jobs across the FDA, CDC, and NIH, acknowledged the necessity of reversing some cuts.
Senator Patty Murray described the plan as “an absurd suggestion” that “defies common sense,” citing ongoing outbreaks of bird flu, measles, and the fentanyl epidemic.

Implications:

• Public Health Impact: Critics argue that the proposed cuts could severely impact the department's capacity to respond to public health crises, including disease outbreaks and epidemics.

• Research and Innovation: The reduction in NIH funding may hinder medical research and innovation, potentially delaying advancements in treatments and cures for various diseases.

• Healthcare Services: The elimination of certain programs and consolidation of agencies could disrupt the delivery of health services, particularly for vulnerable populations.

The Trump administration's FY 2026 budget proposal for HHS represents a significant shift in federal health policy, aiming to streamline operations and reduce spending. However, the proposed cuts and reorganizations have raised substantial concerns among public health experts, lawmakers, and advocacy groups about the potential negative impacts on research, disease prevention, and healthcare services. As the proposal requires congressional approval, the coming months will be critical in determining the future of these initiatives.