ARTICLE
29 April 2025

Budget Document Provides Additional Detail On HHS Reorganization And Previews President's Budget Request

MP
Manatt, Phelps & Phillips LLP

Contributor

Manatt is a multidisciplinary, integrated national professional services firm known for quality and an extraordinary commitment to clients. We are keenly focused on specific industry sectors, providing legal and consulting capabilities at the very highest levels to achieve our clients’ business objectives.
Though the Trump Administration does not plan to release its presidential budget for fiscal year (FY) 2026 until later this spring, a draft of an agency budget document was recently reported by the press.
United States Food, Drugs, Healthcare, Life Sciences

This overview is excerpted from Manatt on Health, Manatt's subscription service that provides in-depth insights and analysis focused on the legal, policy and market developments. For more information on how to subscribe and to activate a complimentary one week trial to Manatt on Health, please reach out to Barret Jefferds.

Though the Trump Administration does not plan to release its presidential budget for fiscal year (FY) 2026 until later this spring, a draft of an agency budget document was recently reported by the press. This document—the Department of Health and Human Services (HHS) 2026 Discretionary Budget "passback" from the Office of Management and Budget (OMB), dated April 10 and labeled "Pre-decisional"—represents OMB's response to HHS budget officials in the lead-up to the release of the President's Budget for FY 2026.

This information unveiled a number of previously undisclosed details about the scope of the Administration's reorganization of HHS. While this should not be viewed as a final proposal, the document provides a better snapshot of shifted offices—like moving management of the 340B Drug Discount Program from the Health Resources and Services Administration (HRSA) to the Centers for Medicare & Medicaid Services (CMS)—and programs under newly created entities like the Administration for a Healthy America (AHA), Assistant Secretary of Innovation, and the Assistant Secretary for Enforcement.

Total requested HHS discretionary budget authority in this document was just over $80.4 billion, an overall cut of more than 30 percent to the overall total FY 2025 enacted budgetary authority. The full FY 2026 President's budget request is expected in the coming weeks and may provide further insight into the HHS reorganization.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More