President Trump recently released his
proposed budget request for Fiscal Year (FY) 2026. The President's proposed budget is a blueprint, representing the Administration’s wish list and is typically viewed as symbolic. It contains legislative proposals Congress may or may not take up. It also includes administrative proposals which government agencies, such as the U.S. Department of Health and Human Services (HHS), may implement without legislation using their administrative authority.
This is separate from the budget reconciliation process, which allows Congress to advance legislative priorities that are tied to taxes and spending. The reconciliation process is currently underway, and we continue to urge you to
contact your Republican lawmakers about protecting Medicaid, especially provider taxes.
The President's FY26 budget proposal may inform the federal budget debate later this year. The federal government is currently funded through September 30, 2025, when Congress must pass a new budget or extend current government funding, which it has often done through a continuing resolution.
Of note, the President's FY26 Budget Proposal:
- Decreases HHS discretionary spending by 26 percent, from $127 billion in FY25 to $93.8 billion in FY26.
- Gears most cuts toward the National Institutes of Health and the Centers for Disease Control and Prevention.
- Includes a $675 million cut to the Centers for Medicare and Medicaid Services (CMS) program management. The Administration says the cuts will have no impact on benefits to Medicare and Medicaid beneficiaries but are focused on eliminating DEI activities, health equity-focused activities, and Inflation Reduction Act-related outreach and education activities.
- Includes new investments as part of the President’s Make America Healthy Again initiative.
- Increases funding for health care services tailored to American veterans’ needs, both at Department of Veterans Affairs (VA) medical centers and in the community. Veterans who qualify for access to care with local community providers would be empowered to make the choice to see them, rather than having to drive hours to access the nearest VA facility in some cases.
The President’s budget released today is largely consistent with recent announcements from HHS about restricting the agency. AHCA/NCAL will continue to monitor ongoing developments.