Leaked Trump Administration Document Reveals Massive Cuts Across Federal Health Agencies
Published April 21, 2025
By AACOM Government Relations
Federal Policy
OME Advocate
- The Trump administration is planning to cut more than 30 percent in funding from the Department of Health and Human Services (HHS), according to a leaked White House Office of Management document. The new HHS budget requests about $80.4 billion in discretionary spending, a decrease from its discretionary budget of roughly $117 billion under the current year-long continuing resolution (PL 119-4).
- The HHS budget draft outlines major cuts and restructuring of federal agencies. Notably, the proposal would:
- Reduce NIH’s $47 billion budget to $27 billion and consolidate the agency’s 27 institutes and centers into eight, eliminating National Institutes for Nursing Research, National Center for Complementary and Integrative Health, Fogarty International Center and National Institute on Minority Health and Health Disparities.
- Create a new $20 billion agency named the Administration for a Healthy America. The new agency would have $500 million in policy, research and evaluation funding, and eliminate existing programs focused on advancing rural health initiatives and increasing the healthcare workforce.
- Eliminate several rural programs under Health Resources and Services Administration (HRSA), including rural hospital flexibility grants, state offices of rural health, rural residency development program and at-risk rural hospitals program grants.
- Eliminate several health workforce programs, including Medical School Education, Primary Care Training and Enhancement, Scholarships for Disadvantaged Students and Public Health Workforce Development.
- Provide $345 million for the National Health Service Corps (NHSC) program and $175 million for Teaching Health Centers Graduate Medical Education, matching funding levels in this year's continuing resolution.
- The proposal also assumes that changes to cap NIH indirect costs will be in effect.
- AACOM is monitoring developments and the proposal's potential impact to agencies and long-running programs that affect rural health and osteopathic medical students.
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