President Donald Trump’s fiscal year 2026 budget proposal, released May 2, outlines a $160 billion reduction in non-defense federal spending.
Here are five things ASCs need to know:
1. Major cuts to NIH and CDC: The budget proposes nearly halving the budgets for the National Institutes of Health and the Centers for Disease Control and Prevention. NIH funding would drop from approximately $48 billion to $27 billion, while CDC funding would decrease from $9 billion to $4 billion, according to The New York Times.
2. Funding allocated to HHS: The proposal allocates funding to the Department of Health and Human Services to promote nutrition, physical activity and overall healthy lifestyles. According to a White House press release, the initiative also aims to reduce the nation’s “over-reliance on medications and treatments.”
3. CDC reorganization and program cuts: The plan would eliminate several CDC divisions focused on disease and injury prevention, including efforts addressing gun violence. The agency’s scope would shift to focus more narrowly on infectious diseases, with additional cuts targeting environmental health, global health and public health preparedness programs.
4. $1 billion cut to mental health services: The Substance Abuse and Mental Health Services Administration would face a $1 billion reduction in its funding.
5. Medicare and Medicaid funding preserved: The budget does not include any reductions to Medicare or Medicaid funding.
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