OMB Releases Fiscal Year 2027 President’s Budget

The Office of Management and Budget released President Donald J. Trump’s fiscal year 2027 budget, which includes $111.1 billion in discretionary budget authority for the U.S. Department of Health and Human Services — a $15.8 billion, or 12.5%, reduction from the enacted FY 2026 budget.

The proposed budget recommends that several programs be eliminated, including the Medicare Rural Hospital Flexibility Program, the State Offices of Rural Health, the Rural Hospital Stabilization Program and the Rural Hospital Provider Assistance Program.

The budget calls for $6.8 billion in funding for the Centers for Medicare & Medicaid Services, which is a $1.4 billion reduction from the enacted FY 2026 budget. The proposal also includes moving the Office of Pharmacy Affairs from HHS to CMS, while increasing funding for the 340B Drug Pricing Program from $8 million to $20.5 million.