Restructuring the Department of US Health and Human Services (DHHS)

The Trump administration plans to shrink the workforce of DHHS by nearly a quarter with plans to implement some changes within the next ten days. Some 10,000 full-time employees will be cut through the layoffs, in addition to other vacant positions that will not be replaced. Thousands of full-time staff have already left the department in recent months, in addition to thousands more contractor and fellowship positions that were also eliminated. Secretary Kennedy said he would cut 3,500 jobs from the Food and Drug Administration, but the reduction will not affect drug, medical device, or food reviewers, nor will it impact inspectors. At the Centers for Disease Control and Prevention the workforce will decline by around 2,400 employees, to “focus on returning to its core mission of preparing for and responding to epidemics and outbreaks” but the cuts are not intended to undermine infectious disease work. The National Institutes of Health would lose 1,200 jobs. From the Centers for Medicare and Medicaid Services (CMS), the workforce will decline by “approximately 300 employees, with a focus on reducing duplication” at CMS, which had already been facing hiring limits due to a budget crunch in recent years. The reorganization will not impact Medicare or Medicaid services, the administration stated.

Secretary Kennedy also proposed the creation of a new agency called the Administration for a Healthy America, or AHA. The AHA would include the Office of the Assistant Secretary for Health, Health Resources and Services Administration, Substance Abuse and Mental Health Services Administration, Agency for Toxic Substances and Disease Registry and National Institute for Occupational Safety and Healthy.

The HHS release can be found here: https://www.hhs.gov/about/news/hhs-restructuring-doge.html

And the video announcement by Secretary Kennedy can be found here: https://www.youtube.com/watch?v=O8qQxLYTyV8&pp=0gcJCb0Ag7Wk3p_U

Rescissions of FY2025 Funding

It is believed that the White House is working on a package that would rescind FY2025 funding that Congress approved earlier this month. This package would be sent to Congress for their considerations and action. Senate Republicans said they are optimistic about passing a rescissions package to cancel unwanted federal spending. Both House and Senate Republicans have urged Trump administration officials to use the formal rescissions process in make further spending cuts. Vice President Vance said that President Trump plans to send a rescissions package to “enshrine” in legislation spending cuts that have been identified by DOGE. It is unclear when such a package would be sent to Congress.

Budget Resolution

The Senate may take up its FY2026 Budget Resolution on the floor next week, the first step in the Budget Reconciliation process. As a reminder, the House and Senate have differed on their strategies for budget reconciliation– with the House going with one big bill, and the Senate opting for two smaller packages—so differences will need to be worked out.

All of these topics have been discussed in more detail during our PriorityONE live briefings over the last few weeks. If you’re not a part of PriorityONE, consider joining: https://ncsddc.us16.list-manage.com/track/click?u=0f521187d5810090e57158395&id=57c3916768&e=bfd62f5d37