Overview

• The Trump administration has unveiled a proposal to reduce the Department of Health and Human Services' discretionary budget by $40 billion for fiscal year 2026.
• The cuts represent approximately one-third of HHS’s discretionary funding, which was $121 billion in FY2024, and are part of a broader federal austerity initiative.
• The plan includes a deep restructuring of HHS, such as merging divisions within the National Institutes of Health and cutting rural healthcare access programs.
• In March 2025, nearly 25% of HHS staff were laid off, impacting epidemic response and drug approval processes, signaling the administration’s ongoing efforts to reshape the department.
• The proposal is still in its preliminary stages and requires Congressional approval, raising concerns about its potential effects on public health services and rural healthcare.