HHS 2026 Budget: Cuts & Details
- The Trump administration's latest budget proposal outlines a significant reshaping of the department of Health and Human Services (HHS), including significant cuts to the National Institutes of Health...
- The updated budget calls for nearly halving the NIH's budget and consolidating the HHS's 28 operating divisions into 15.
- Congressional approval is needed to enact the budget.Lawmakers typically revise the executive branch's spending requests through appropriations legislation.
The Trump management’s budget slashes the Department of Health and Human Services (HHS), proposing deep cuts, including a drastic reduction to the National Institutes of Health (NIH) budget. The plan seeks to restructure the NIH, perhaps impacting crucial research and programs. Other agencies like the CDC and FDA also face reductions, alongside over 5,000 contract terminations. The budget would consolidate HHS operations and establish a new agency, focusing on “Make America Healthy Again” initiatives. The fate of these proposed changes now rests with Congress. For details on the revisions, News Directory 3 provides comprehensive updates as this story unfolds. Discover what’s next for HHS programs as lawmakers intentional.
Trump Budget Proposes HHS Cuts, NIH Restructuring
Updated June 03, 2025
The Trump administration’s latest budget proposal outlines a significant reshaping of the department of Health and Human Services (HHS), including significant cuts to the National Institutes of Health (NIH). The proposal, released Friday, seeks to consolidate HHS operations and eliminate numerous federal healthcare and social welfare programs.
The updated budget calls for nearly halving the NIH’s budget and consolidating the HHS’s 28 operating divisions into 15. It also aims to terminate over 5,000 contracts. The administration contends these changes will streamline HHS functions and eliminate diversity, equity, and inclusion initiatives.
Congressional approval is needed to enact the budget.Lawmakers typically revise the executive branch’s spending requests through appropriations legislation. Though, if implemented, the budget would formalize the Trump administration’s restructuring of the HHS, which has already led to job losses and operational challenges, according to current and former employees.
NIH Faces Major Cuts
The proposal has sparked concern among healthcare groups, particularly research institutions, which view the NIH cuts as detrimental to scientific progress and public health. Mary Woolley, president and CEO of Research!america, stated that the cuts would negatively impact Americans’ health and economic well-being.
The proposal reduces the HHS’s discretionary funding from $127 billion in 2025 to $95 billion in 2026, a 25% reduction. The NIH would lose almost $18 billion of its discretionary budget, nearly halving its annual funding. The NIH’s 27 institutes and centers would be reorganized into eight bodies.
While the National Cancer Institute,National Institute of Allergy and Infectious Diseases,and National Institute on Aging would be retained,their budgets would be reduced. New agencies would be created, including the National Institute on Body Systems and the National Institute on Neuroscience and Brain Research.
The Trump administration also proposes creating the National Institute for Child and Women’s Health, Sensory disorders, and Community, and the National Institute of Behavioral Health. The budget document states that this restructuring will create efficiencies within NIH and allow the agency to focus on science and coordinate research.
Sen.Patty Murray, D-Wash., criticized the proposed cuts, stating that they would harm America’s research enterprise and benefit countries like China.
Other agencies Affected
The Centers for Disease Control and Prevention (CDC) would lose $3.9 billion in budget authority compared to 2025. Programs focusing on HIV/AIDS prevention, tuberculosis, vaccinations in developing countries, and chronic disease prevention would be cut. A new CDC center would combine public health preparedness programs.
The HHS plans to allocate $14 billion to a new agency called the Administration for a Healthy America (AHA), tasked with overseeing “Make America Healthy Again” initiatives. The AHA would centralize disease prevention efforts and focus on primary care, maternal health, and mental health.
The AHA would include the health Resources and Services Administration, the Substance Abuse and Mental Health Services Administration, and the Office of the Assistant secretary for Health. Some programs from the CDC, such as the National Institute for Occupational Safety and Health, would also be moved under the AHA.
Oversight of the 340B drug pricing program would shift from HRSA to the CMS. The CMS would have $12 million to oversee 340B, the same budget that HRSA had this year. the CMS’s budget would shrink by $661 million next year.
The Food and Drug Administration (FDA) would lose $409 million. The agency would focus on food and infant formula safety inspections and consider revising a rule regarding new food additives.
A new HHS operating division called the Administration for Children, families, and Communities would be created, housing programs formerly under the Administration for Children and Families and the Administration for Community Living.
The White House budget seeks non-defense spending cuts of almost 23% in the coming fiscal year. Congress will consider the budget as it maps out appropriations legislation in the fall.
What’s next
The budget now goes to Congress, where lawmakers will debate and revise the proposals. The final outcome will determine the future of HHS programs and the direction of healthcare policy in the U.S.