HHS Announces Drastic Restructuring, Cuts 10,000 Jobs, Merges Agencies, and Slashes Regional Offices in Bid to Save $1.8 Billion

On March 27, the U.S. Department of Health and Human Services (HHS) announced a restructuring via a press release. The restructuring is in accordance with President Trump's Executive Order, “Implementing the President’s ‘Department of Government Efficiency’ Workforce Optimization Initiative.”

The agency said it will reduce its workforce by approximately 10,000 full-time employees. Further, according to the press release, this reduction, along with other efforts from the administration including early retirement and Fork in the Road, the restructuring results in a total downsizing from 82,000 to 62,000 full-time employees. The agency also alleges that the reduction will save taxpayers $1.8 billion per year.

The press release stated, “Secondly, it will streamline the functions of the Department. Currently, the 28 divisions of the HHS contain many redundant units. The restructuring plan will consolidate them into 15 new divisions, including a new Administration for a Healthy America, or AHA, and will centralize core functions such as Human Resources, Information Technology, Procurement, External Affairs, and Policy. Regional offices will be reduced from 10 to 5.”

Further, “Third, the overhaul will implement the new HHS priority of ending America’s epidemic of chronic illness by focusing on safe, wholesome food, clean water, and the elimination of environmental toxins. These priorities will be reflected in the reorganization of HHS.”

The press release also said that the restructuring will “improve 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 press release also detailed certain specifics surrounding the restricting including the creation of the Administration for a Healthy America (AHA), which will consolidate several health-related agencies, including OASH, HRSA, SAMHSA, ATSDR, and NIOSH. This centralization aims to improve the coordination of health resources, especially for low-income Americans, and focuses on key areas such as Primary Care, Maternal and Child Health, Mental Health, Environmental Health, HIV/AIDS, and Workforce development. By transferring SAMHSA to the AHA, the plan seeks to increase operational efficiency and eliminate barriers between similar programs.

Additionally, the Centers for Disease Control and Prevention (CDC) will be strengthened by transferring the Administration for Strategic Preparedness and Response (ASPR) to the CDC, further reinforcing its core mission of protecting Americans from health threats. The plan also introduces a new Assistant Secretary for Enforcement within the Department of Health and Human Services (HHS), tasked with overseeing the Departmental Appeals Board (DAB), Office of Medicare Hearings and Appeals (OMHA), and the Office for Civil Rights (OCR) to address waste, fraud, and abuse in federal health programs.

Additional restructuring will involve merging the Assistant Secretary for Planning and Evaluation (ASPE) with the Agency for Healthcare Research and Quality (AHRQ) to form the Office of Strategy. This office will enhance research to inform policies and improve the effectiveness of federal health programs. Lastly, the Administration for Community Living (ACL), which supports older adults and people with disabilities, will undergo a reorganization, integrating its programs into other HHS agencies such as ACF, ASPE, and CMS, while ensuring that Medicare and Medicaid services remain unaffected.