Leaked HHS budget reveals 30% cuts, elimination of many core services

A 64-page leaked budget proposal from the U.S. Department of Health and Human Services (HHS) reveals more than $40 billion in cuts to various programs, including the total elimination of some and the consolidation of others.

The unfinalized plan, first reported by the Washington Post, shows that the proposed cuts extend beyond the termination of diversity, equity and inclusion (DEI) initiatives. Services related to teen pregnancy prevention, lead safety, rural development, energy assistance, and Head Start have all been completely zeroed out in the proposed budget, along with research initiatives focused on Lyme disease, autism, and firearm-related deaths.

However, $20 billion is being allocated to a newly created Administration for a Healthy America, which may absorb some of these services. Of that amount, $500 million is set aside for a Make America Healthy Again initiative, which aims to investigate the root causes of chronic illness.

Overall, the budget reflects a 30% cut to HHS across the board, with the Centers for Disease Control and Prevention (CDC), Food and Drug Administration (FDA), and National Institutes of Health (NIH) all facing substantially reduced funding.

For example, an FDA program that sends inspectors to manufacturing facilities is being eliminated entirely, with the expectation that states will assume those responsibilities. State contracts would be expanded under the new HHS budget plan to accommodate the shift.

CDC funding would be slashed by 44%, as the agency shifts away from chronic disease management to focus exclusively on surveilling infectious diseases and identifying novel pathogens before they become global threats.

The NIH is facing a roughly 40% reduction, with its current $47 billion budget falling to $27 billion. Some departments—such as those focused on minority health—are being eliminated entirely, while others are being consolidated as part of a broader restructuring.

Broadly, anything associated with racial DEI or "gender" is being eliminated, with no notable exceptions.

Expanding 340B oversight

Interestingly, HHS is also increasing oversight of the 340B drug discount program, with new rules proposed that would require participating medical centers to charge no more than the actual cost of acquiring and dispensing drugs to low-income patients.

How the restructuring and cuts will impact services remains to be seen, as many specifics of the new structure are still unclear. Additionally, this leaked budget represents a draft and has yet to be finalized.

For more, read the Washington Post’s coverage here. Inside Medicine also received a copy of the proposal; their coverage can be found here.

Chad Van Alstin Health Imaging Health Exec

Chad is an award-winning writer and editor with over 15 years of experience working in media. He has a decade-long professional background in healthcare, working as a writer and in public relations.

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