Administration’s FY26 Budget Includes Restructuring and Spending Cuts
Published June 16, 2025
By AACOM Government Relations
Federal Policy
OME Advocate
- On May 30, 2025, the administration released further details on its fiscal year (FY) 2026 Budget Request as a follow-up to the “Skinny Budget” released in early May.
- The U.S Department of Health and Human Services (HHS) budget request provides $94.7 billion, a $32.65 billion cut from $127.35 billion in FY24, including:
- $27.5 billion for the National Institutes of Health (NIH), a cut of $19.8 billion from $47.3 billion in FY24, while reorganizing it into eight Institutes. It would also implement a 15 percent cap on facilities and administration research costs.
- $4.3 billion for the Centers for Disease Control and Prevention (CDC), a $4.9 billion cut from $9.2 billion in FY24.
- The budget would reorganize HRSA, the Substance Abuse and Mental Health Services Administration (SAMHSA), several CDC centers and more under the newly created Administration for a Healthy America (AHA). The budget justification for AHA is $20.6 billion and includes:
- The elimination of 14 Health Workforce Programs under Title VII and VIII.
- The elimination of the Children’s Hospital Graduate Medical Education program.
- Increases to the Teaching Health Centers Graduate Medical Education and the National Health Service Corps.
- The U.S. Department of Education (ED) budget request for FY26 provides $66.7 billion, a $16.6 billion cut from $83.3 billion in FY24, which reflects the desire to wind down ED, and includes $949.67 million in discretionary funds for higher education programs.
- AACOM has concerns with the elimination of and funding reductions for key workforce programs and is developing an advocacy strategy to protect them.
- For more information, see AACOM’s summary.
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