President proposes HHS cuts in 2027 budget

The White House released its fiscal year 2027 budget on April 3, proposing $111.1 billion for the Department of Health and Human Services (HHS)—a cut of more than $15.8 billion, or -12.5%, from 2026.

The administration also outlines $7 billion in one-time HHS funding rescissions that are not detailed in budget documents and may need congressional approval.

The big picture: The President again backs a major HHS restructuring, despite ongoing court challenges to his authority to reorganize without Congress.

• The plan would create an Administration for a Healthy America by combining the Office of the Assistant Secretary for Health, the Health Resources and Services Administration, the Substance Abuse and Mental Health Services Administration, and select CDC programs.

The impact: Several HHS agencies central to CAP priorities would see notable shifts.

• CMS: The budget doesn’t directly change Medicare coverage or reimbursement, which are financed mainly through payroll taxes and premiums.
  • It highlights nearly $1.8 billion in suspended Medicare payments in 2025 through anti-fraud programs.
• FDA: More than half of FDA funding continues to come from user fees.
  • The budget proposes a $7.2 billion increase from 2026 ($3.9 billion more in user fees and $3.3 billion in discretionary funds).
  • Increased funding for the Center for Devices and Radiological Health focuses on user fee agreement requirements and expanding inspection capacity.
• CDC: The budget does not revive the 2026 proposal to eliminate the Division of Cancer Prevention and Control, which supports state cancer registries.
  • CAP advocacy helped preserve cancer registry funding in 2026, and the 2027 budget proposes $413 million for cancer prevention programs, level with 2026.
  • The budget would cut nearly $985 million from Chronic Disease Prevention and Health Promotion, reducing every program except cancer-related efforts.
• NIH: NIH faces the largest proposed HHS cut at $3.7 billion.
  • The budget does not repeat earlier plans for a major NIH restructuring.
  • It reiterates support for a 15% cap on NIH indirect costs.

Next steps: While the President’s budget signals administration priorities, Congress controls federal spending.

• HHS Secretary Robert Kennedy Jr. will testify before Congress on the department’s priorities in the coming weeks.