Rural Health Programs in Jeopardy - New HHS Budget Proposal Released

Sarah Hohman, Director of Government Affairs, NARHC & Mo Sullivan, Government Affairs Associate, NARHC

06/12/2025

Last week, the Department of Health and Human Services (HHS) released additional details on its proposed FY2026 budget, particularly the planned restructuring that impacts many rural health programs and grants.

While budgets proposed each year are key indicators of an Administration’s priorities, passing the government’s appropriations package each year is a responsibility of Congress.

However, these recently released details demonstrate priorities of the Administration and confirm many of the cuts to key rural health programs outlined in a leaked version of the budget earlier this year.

These include:

  • State Offices of Rural Health
  • Rural Hospital Flexibility Grants
  • Rural Hospital Stabilization Pilot Program
  • Area Health Education Centers (AHECs)
  • Workforce Programs – Primary Care Training and Enhancement, Nurse Education, Practice, and Retention, and many others.

These programs provide essential resources and support to rural communities. Their elimination would be a dangerous further disinvestment in all facets of rural.

In total, HHS is seeking $94.7 billion for FY2026, which is a decrease of over $31 billion from the previous year’s budget. This is coupled with a major restructuring plan and the creation of a new agency: the Administration for a Healthy America (AHA), with a focus on Secretary Kennedy’s Make America Healthy Again (MAHA) priorities. The Health Resources and Services Administration (HRSA) would be housed within AHA. However, there is debate as to whether the planned restructuring of HHS can be done without Congressional approval.

Notably, the budget also highlights Community Health Centers for being “at the forefront of efforts to Make America Healthy Again” by recognizing their contributions to primary and preventative care services. While this recognition is important, RHCs must also be acknowledged for their indispensable contributions to rural healthcare delivery.

As Congress begins to consider these proposals, please make your voice heard.

Remind Congress that these programs are vital to rural communities and urge your legislators to oppose these proposed program cuts by clicking here.