HHS began sending out dismissal notices on April 1 as part of an agencywide plan to lay off 10,000 full-time employees.
On April 1, HHS began sending out dismissal notices as part of a sweeping plan to reduce the agency’s full-time workforce by 10,000.
Here’s what ASCs need to know:
1. HHS Secretary Robert F. Kennedy Jr. announced a “dramatic restructuring” initiative March 27 aimed at reducing the agency’s workforce from 82,000 to 62,000 employees. The overhaul is positioned as a streamlining effort to eliminate redundancy and improve efficiency across HHS departments, according to Mr. Kennedy.
2. According to a March 27 HHS fact sheet, several major departments within HHS will be impacted, though critical operational roles are expected to remain intact. Layoffs at affected departments include around:
- 3,500 FDA employees. Drug, medical device and food reviewer roles will not be affected, nor will inspectors.
- 2,400 CDC employees.
- 300 CMS employees.
- 1,200 National Institutes of Health employees.
3. The CDC’s oral health department was essentially shut down as part of the layoffs. The American Dental Association said these reductions undermine national health priorities in an April 1 news release. The organization urged HHS Secretary Robert F. Kennedy Jr. and President Donald Trump to immediately reverse the cuts.
4. Although layoffs were initially set to be announced March 28, they were postponed to allow for a final data review. Sources told NBC News that the cuts span teams focused on infectious disease response, drug approvals and federal health insurance oversight. The FDA’s entire media relations team was also disbanded.
5. The notices followed closely behind an executive order signed by President Donald Trump on March 27, aimed at pausing or limiting collective bargaining in agencies tied to national security. CBS News reported the connection between the order and the HHS downsizing April 1.
6. As part of the reorganization, HHS will consolidate 28 existing divisions into 15 new ones to eliminate overlapping functions. A new entity, the Administration for a Healthy America, will be established as part of this realignment. The Administration for Strategic Preparedness and Response, which handles public health emergencies and disaster responses, will be transferred to the CDC. Meanwhile, the Assistant Secretary for Planning and Evaluation will merge with the Agency for Healthcare Research and Quality to form a new Office of Strategy.
7. Programs serving disabled individuals and older adults will be absorbed into existing HHS bodies like CMS and the Administration for Children and Families. Medicare and Medicaid benefits and operations will remain unchanged.
8. Twenty-three states and the District of Columbia filed a lawsuit against HHS over the Trump administration’s abrupt cancellation of billions in public health grants to state health departments. The suit, filed April 1 in the U.S. District Court for the District of Rhode Island, alleges HHS’ discontinuation of more than $11 billion in funding to state health departments violates federal law and jeopardizes public health. The eliminated funds supported efforts to track infectious diseases, improve pandemic preparedness, expand mental health services and modernize outdated systems. The states allege that if funding is not restored, key public health programs will be disbanded and thousands of employees could lose their jobs.
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