OME Advocate Newsletter

On Friday, April 3, 2026, the President released his fiscal year (FY) 2027 Budget Request. This request includes $1.5 trillion for defense spending, a 44 percent increase over FY26 enacted levels and $73 billion in non-defense spending, representing a 10 percent cut from the previous year.

The White House continues to focus on dismantling many programs within the U.S. Department of Education (ED) and requests $76.5 billion in discretionary spending, a $2.3 billion or 2.9 percent decrease from the FY26 enacted funding level.

Within the Department of Health and Human Services (HHS), the President requests $111.1 billion in discretionary funding, a $15.8 billion or 12.5 percent decrease from the 2026 enacted funding level. The budget seeks to reorganize aspects of HHS, establishing the Administration for a Healthy America (AHA), prioritizing programs that prevent chronic disease and improve nutrition, food and drug quality and safety standards. Many programs that were formerly in the Health Resources and Services Administration (HRSA), the Substance Abuse and Mental Health Services Administration, the Centers for Disease Control and Prevention and the Office of the Assistant Secretary for Health are eliminated or moved to AHA.

The budget requests $41 billion for National Institutes of Health (NIH) research, a $5 billion cut from the FY26 enacted level and proposes reforms to NIH, including the elimination of the following Centers: National Institute on Minority Health and Health Disparities, Fogarty International Center and the National Center for Complementary and Integrative Health, among other NIH reforms. An AACOM FY27 budget analysis is forthcoming.

A recent MedPage Today article highlights persistent challenges DO students face in the residency selection process. New AACOM survey data show that among more than 3,700 graduating students, 79.1 percent experienced bias related to attending an osteopathic medical school. Many respondents reported being required to take the USMLE or being denied interviews.

Some also described troubling interactions, including: “You people shouldn’t be doing surgery,” “Do you regret ‘settling’ for a DO school?” and “We usually don’t take DOs, but thanks for coming.” These experiences underscore the financial, emotional and professional barriers DO students continue to face.

The article highlights the Fair Access In Residency (FAIR) Act, H.R. 2314 / S. 2715, as a measure to address these disparities by requiring Medicare-funded residency programs to accept COMLEX-USA and ensure fair consideration of osteopathic (DO) applicants.

Read the article and tell Congress to support the FAIR Act to give DO students fair access to residencies and strengthen our healthcare workforce.

Take Action!

• On March 23, 2026, the White House Menopause Task Force held its first meeting to establish strategic direction, define national concerns, articulate the problem state and outline preliminary courses of action.
• The meeting included representatives from HHS, NIH, the Department of War and other federal agencies, along with AACOM and additional medical organizations. The initiative was organized by the White House Medical Unit at the request of the First Lady Melania Trump.
• Meeting topics included: public health strategy, health research acceleration and workforce and academic reforms, including the UME to CME continuum.

• On March 27, 2026, ED announced guidance to student loan borrowers enrolled in the Saving on a Valuable Education (SAVE) repayment plan directing them to exit the plan and enter a new one.
• ED came to a proposed joint settlement agreement with the State of Missouri that ended the SAVE plan in December 2025.
• The guidance details upcoming changes to student loan repayment options and information on how borrowers can enroll in a new, legal plan.
• Beginning July 1, 2026, loan servicers will begin issuing formal notices to borrowers. Once contacted, borrowers have at least 90 days to select a new repayment plan. If no action is taken within that window, borrowers will be automatically placed into a standard repayment plan or a new tiered option.

• On March 26, 2026, HHS and the Centers for Medicare & Medicaid Services (CMS) announced the members of the Healthcare Advisory Committee, a new federal advisory body comprised of leaders from across the healthcare system to provide expert advice on improving, strengthening and modernizing U.S. healthcare.
• The 18 selected members will serve two-year terms and will meet regularly with the goal of providing recommendations to HHS Secretary Robert F. Kennedy Jr. and CMS Administrator Mehmet Oz, MD, on how to improve patient care and modernize the U.S. healthcare system through federal policy and program administration.
• AACOM was disappointed that no DOs were appointed to the committee but will monitor the committee and pursue opportunities to expand the osteopathic voice. For more information, visit the CMS healthcare advisory committee overview webpage.

• On March 26, 2026, HHS and the Centers for Medicare & Medicaid Services (CMS) announced the members of the Healthcare Advisory Committee, a new federal advisory body comprised of leaders from across the healthcare system to provide expert advice on improving, strengthening and modernizing U.S. healthcare.
• The 18 selected members will serve two-year terms and will meet regularly with the goal of providing recommendations to HHS Secretary Robert F. Kennedy Jr. and CMS Administrator Mehmet Oz, MD, on how to improve patient care and modernize the U.S. healthcare system through federal policy and program administration.
• AACOM was disappointed that no DOs were appointed to the committee but will monitor the committee and pursue opportunities to expand the osteopathic voice. For more information, visit the CMS healthcare advisory committee overview webpage.

• On March 30, 2026, the NIH named Elisabeth Armstrong, DBe, as the new chief of staff in the Office of the Director, Jay Bhattacharya, MD, PhD. In the role, she will manage NIH operations and provide strategic counsel. She is replacing Seana Cranston, who resigned on March 9, 2026.
• Previously, Dr. Armstrong was director of the Office of the Executive Secretariat at the Food and Drug Administration, worked in healthcare policy equity research for Raymond James & Associates’ Global Equities and Investment and held various biotech and bioethics related roles in asset management, technology and healthcare. She also worked as an Emmy-nominated broadcast journalist.

• On March 9, 2026, ED published a Notice of Proposed Rulemaking (NPRM) to implement statutory changes to the Workforce Pell Grant program enacted under the One Big Beautiful Bill Act (OBBBA).
• ED is expected to release the NPRM covering the accountability provisions in late May or early June.
• Comments on the proposed regulations are due Wednesday, April 8, 2026. For more information, read the NPRM and AACOM’s summary.