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Updated: July 22, 2025 07:45
President Trump's budget request for fiscal 2026 would reduce the Department of Health and Human Services by over $31 billion and is growing in opposition. The plan, announced in May last month, would substantially reduce the country's largest agencies, including the National Institutes of Health, raising bipartisan concern regarding the impact on public health infrastructure.
Most Significant Points from the Proposal
NIH will face a $18 billion reduction, the largest across HHS agencies
$3.6 billion would be saved by CDC by eliminating duplicative or overlapping programs
CMS, HRSA, and SAMHSA also experience reductions of $700 million to $1.7 billion
Only Make America Healthy Again gets a funding increase of $500 million
Political Consequences and Legislative Rebuff
House Republicans have negotiated to enact a total of $45 billion in federal cuts, much less than Trump asked
Senate Democrats threaten to filibuster appropriations bills after party-line passage of $9 billion rescission bill
Appropriations Chairman Tom Cole said that the vast majority of Trump's planned cuts won't survive committee negotiations
There remains bipartisan backing for higher funding levels in FDA and Veterans Affairs bills
Global Implications and Industry Response
Trump's threatened tariffs on European pharmaceutical companies could worsen U.S. drug shortages
Large pharma firms like Merck and Novartis are investing in US manufacturing, and smaller generic drug firms may not be far behind.
Experts also caution against rising dependence on Indian and Chinese suppliers and higher costs for patients and hospitals
Sources: Politico, The Hill, Healthcare Dive, The Hindu, NDTV