The Department of Health and Human Services (HHS) has announced it is laying off approximately 10,000 federal employees working full time at the agency as part of what it describes as a “dramatic restructuring” plan.
When combined with the Trump administration’s other workforce downsizing initiatives including the Fork in the Road buyout offer from the Office of Personnel Management and early retirement, HHS estimates that its workforce will be reduced by about 24%, going from 82,000 to 62,000 full-time employees. The agency said that its budget grew by 38% and its staffing increased by 17% over the past 4 years.
In terms of specifics, HHS said that the planned layoffs break down as follows at these four subagencies:
- Food and Drug Administration (FDA) will decrease its workforce by approximately 3,500 full-time employees, with a focus on streamlining operations and centralizing administrative functions. This reduction will not affect drug, medical device, or food reviewers, nor will it impact inspectors.
- The Centers for Disease Control and Prevention (CDC) will decrease its workforce by approximately 2,400 employees, with a focus on returning to its core mission of preparing for and responding to epidemics and outbreaks. This includes moving ASPR under CDC to enhance coordination of response efforts. Of note, HHS says the “CDC” decrease would only be 1,400 if you included the individuals coming over from ASPR (approximately 1,000 individuals).
- The National Institutes of Health (NIH) will decrease its workforce by approximately 1,200 employees by centralizing procurement, human resources, and communications across its 27 institutes and centers.
- The Centers for Medicare and Medicaid Services (CMS) will decrease its workforce by approximately 300 employees, with a focus on reducing minor duplication across the agency. This reorganization will not impact Medicare and Medicaid services.
HHS said that no additional cuts are currently planned, but that “the Department will continue to look for further ways to streamline its operations and agencies.”
HHS Restructuring Plan
The layoffs are part of a broader restructuring plan that is estimated to save taxpayers about $1.8 billion per year while making the agency operate more efficiently. In addition to layoffs, the agency’s restructuring plan has these objectives:
- Streamlining agency functions – HHS currently comprises 28 divisions, many of which are redundant. The plan will consolidate these into 15 new ones and cutting regional offices in half, going from 10 to 5.
- Prioritizing ending America’s epidemic of chronic illness by focusing on safe, wholesome food, clean water, and the elimination of environmental toxins.
- Improving Americans’ experience with HHS by making the agency more responsive and efficient, while ensuring that Medicare, Medicaid, and other essential health services remain intact.
The restructuring plan is being implemented in accordance with President Trump’s Department of Government Efficiency Workforce Optimization Initiative Executive Order. The stated purpose of that Executive Order is “eliminating waste, bloat, and insularity, my Administration will empower American families, workers, taxpayers, and our system of Government itself.”
Among the Order’s objectives:
- Agency Heads will coordinate and consult with DOGE to shrink the size of the federal workforce and limit hiring to essential positions.
- The Office of Personnel Management will initiate a rulemaking to ensure federal employees are held to the highest standards of conduct.
- The Order will significantly reduce the size of the federal government.
As part of the president’s workforce optimization initiative Executive Order, the Trump administration directed agencies back in February to plan for large scale reorganizations and reduction in force (RIF) initiatives.
The specifics of the HHS restructuring plan that have been announced to date are the following:
Create the Administration for a Healthy America (AHA)
As part of its plan to consolidate redundant divisions into new ones, HHS will create a new Administration for a Healthy America (AHA) that will merge multiple agencies, including the Office of the Assistant Secretary for Health (OASH), Health Resources and Services Administration (HRSA), Substance Abuse and Mental Health Services Administration (SAMHSA), Agency for Toxic Substances and Disease Registry (ATSDR), and National Institute for Occupational Safety and Health (NIOSH), into a unified entity.
This centralization aims to enhance coordination of health resources for low-income Americans and focus on key areas such as primary care, maternal and child health, mental health, environmental health, HIV/AIDS, and workforce development. Transferring SAMHSA to AHA will streamline operations and ensure program continuity by eliminating artificial barriers between similar programs.
Move ASPR to CDC
The Administration for Strategic Preparedness and Response (ASPR) will be transferred to the Centers for Disease Control and Prevention (CDC). ASPR currently manages national disaster and public health emergency response. HHS says this transfer reinforces the CDC’s core mission of safeguarding Americans from health threats.
Establish Assistant Secretary for Enforcement Position
Additionally, HHS will establish a new Assistant Secretary for Enforcement to oversee the Departmental Appeals Board (DAB), Office of Medicare Hearings and Appeals (OMHA), and Office for Civil Rights (OCR). This role will be instrumental in combating waste, fraud, and abuse within federal health programs.
Research and Evaluation for Health Policy
The Health and Human Services (HHS) department will merge the Assistant Secretary for Planning and Evaluation (ASPE) with the Agency for Healthcare Research and Quality (AHRQ) to establish the Office of Strategy. This new office aims to enhance research that informs the Secretary’s policies and improve the effectiveness of federal health programs.
Reorganization of the Administration for Community Living (ACL)
Several critical programs that support older adults and individuals with disabilities will be integrated into other HHS agencies, such as the Administration for Children and Families (ACF), ASPE, and the Centers for Medicare and Medicaid Services (CMS). Notably, this reorganization will not affect Medicare and Medicaid services.
“Over time, bureaucracies like HHS become wasteful and inefficient even when most of their staff are dedicated and competent civil servants,” HHS Secretary Robert F. Kennedy, Jr. said. “We aren’t just reducing bureaucratic sprawl. We are realigning the organization with its core mission and our new priorities in reversing the chronic disease epidemic. This Department will do more – a lot more – at a lower cost to the taxpayer.”
