Trump Administration Releases "Skinny" Fiscal Year (FY) 2026 President's Budget

On May 2, 2025, the Trump administration released a preliminary early glimpse of the President’s fiscal year (FY) 2026 budget request for Congress. The President’s budget sets forth the administration’s policy priorities and provides guidance to Congress as it begins the FY 2026 appropriations process. Though the President’s requested budget will not necessarily be fully embraced, it will be a guidepost for the Republican-controlled Congress, which likely will attempt to implement big portions of the President’s preferences. The President’s full budget request is expected later this month.

The budget proposes to cut domestic spending by 22% overall, and even larger cuts to the US Department of Health and Human Services (HHS). Our partners at McDermott+, one of healthcare’s most trusted and respected policy and lobbying consulting firms, outlined parts of the budget request that could impact hospitals if finalized. These include:

• A 26.2% decrease for HHS. This includes cuts to various agencies, such as:
  • 43% decrease for the Centers for Disease Control and Prevention
  • 40% decrease for the National Institutes of Health
  • 18% decrease for the Health Resources and Services Administration
  • 14% decrease for the Substance Abuse and Mental Health Services Administration
  • 34% decrease for the Agency for Healthcare Research and Quality
  • 16% decrease for the Centers for Medicare & Medicaid Services
• $500 million to support the Making American Healthy Again Commission, which has been tasked with determining how to address the childhood chronic disease crisis.
• The President proposes to eliminate several programs, including:
  • Administration for Strategic Preparedness and Response Hospital Preparedness Program
  • Refugee and Unaccompanied Alien Children’s Programs
  • Community Services Block Grant

The provisions included in this budget request will, if finalized, impact agencies that oversee and fund hospitals and eliminate programs that hospitals participate in and count on. Hospital leaders should be informed about the requested budgetary changes and the administration’s policy priorities.

McDermott+ will continue to monitor the administration’s actions ahead of the FY 2026 Appropriations cycle and will provide more insights when the full President’s budget request is released in the coming weeks. In the meantime, read more about what is included in the FY 2026 skinny President’s budget request here.