Health Law Daily Wrap Up, GENERAL HEALTH CARE NEWS—OTHER AGENCY DOCUMENTS: White House budget proposal seeks 12.5 percent cut for HHS, (Apr 6, 2026)

By Sheila Lynch-Afryl, J.D., M.A.

Congress rejected many of the White House’s similar requests for fiscal year 2026.

President Donald Trump requested $111.1 billion in discretionary budget authority for HHS in fiscal year (FY) 2027, a $15.8 billion, or 12.5 percent, decrease from the FY 2026 enacted level. This includes a $5 billion cut to the National Institutes of Health (NIH), which the White House said “broke the trust of the American people with wasteful spending, misleading information, risky research, and the promotion of dangerous ideologies that undermine public health.” Another key proposal was a “major reorganization” of HHS through the Administration for a Healthy America (AHA), which would “prioritize programs that improve nutrition, food and drug quality and safety standards, and prevent chronic disease” (Budget of the U.S. Government for Fiscal Year 2027, Office of Management and Budget, April 3, 3026).

AHA “centralizes the work of multiple sub-agencies” by combining the Health Resources and Services Administration (HRSA), the Substance Abuse and Mental Health Services Administration (SAMHSA), the Office of the Assistant Secretary for Health (OASH), and several programs from the Centers for Disease Control and Prevention (CDC). Such programs, said the White House, “duplicate other Federal spending, promote radicalized DEI ideologies, or use taxpayer funds to support radical nonprofits that are not aligned with Administration policies.” According to HHS’ Budget in Brief, AHA would help implement Trump’s Make America Healthy Again (MAHA) agenda by focusing its discretionary budget on high-impact priority areas, including primary care, maternal and child health, mental health, HIV/AIDS, and workforce development.

Other proposed cuts include:

• $129 million from the Agency for Healthcare Research and Quality, due to its duplication of NIH research;

• $356 million from the Administration for Strategic Preparedness and Response, which has “moved away from its mission”;

• $775 million through the elimination of the Community Services Block Grant;

• $4 billion through ending the Low Income Home Energy Assistance Program;

• $768 million from the Refugee Resettlement Program; and

• $819 million from the Unaccompanied Alien Children program.

According to HHS’ Budget in Brief, the budget proposal requests $976 million in discretionary Health Care Fraud and Abuse Control (HCFAC) Program funding, including $740 million for CMS, $138 million for the U.S. Department of Justice, and $98 million for the HHS Office of Inspector General, a $35 million increase compared to FY 2026. It would provide $6.8 billion in program level funding for CMS, $1.4 billion below FY 2026 enacted, and integrate the Office of Pharmacy Affairs, which carries out the 340B drug pricing program, into CMS Program Management.

The White House’s FY 2027 proposal is similar to last year’s, which sought a $33.3 billion, or 26 percent, reduction for HHS. For example, the FY 2026 request sought to establish AHA, initially announced by HHS Secretary Robert F. Kennedy Jr., and make significant cuts to the NIH. However, the Consolidated Appropriations Act, 2026 (Pub. L. No. 119-75) maintained HHS funding similar to the previous year’s and did not authorize funding for the AHA.

The Association of American Medical Colleges (AAMC), “deeply concerned” about the proposal, argued, “If enacted, this budget request would undermine federal support for medical research, public health, and health professions education.” AAMC joined hundreds of other organizations to recommend FY 2027 appropriations of at least $51.303 billion for the NIH.

Companies: Association of American Medical Colleges

MainStory: TopStory AgencyDocuments WhiteHouseNews GeneralNews ClinicalNews CMSNews CoverageNews