Health Policy Digest - June 2025

We are pleased to present the June issue of the ARN Health Policy Digest. This member benefit provides updates on health policy and legislative and regulatory developments that may be of interest to rehabilitation nurses.

​ President Releases FY 2026 Budget Request

On May 30, the Office of Management and Budget released additional details of the fiscal year (FY) 2026 President's Budget Request. The proposed budget includes significant reductions in health funding, including the elimination and consolidation of some critical programs and activities. The Administration proposes to fund the Department of Health and Human Services (HHS) at $94.7 billion for FY 2026, a reduction of more than $31 billion from current funding levels. Below are more details on how that funding would be allocated across the department:

• $14 billion for the Administration for a Health America (AHA)
• oThis new entity will consolidate the work of the Office of Assistant Secretary for Health, Health Resources and Services Administration (HRSA), Substance Abuse and Mental Health Services Administration, and several centers and programs formerly in the Centers for Disease Control and Prevention (CDC).
• $27.9 billion for NIH, a decrease of $18.1 billion from FY 2024
• oThe budget proposes to reorganize 27 institutes and centers into eight. Four institutes, including National Institute on Nursing Research (NINR) and National Institute on Minority Health and Health Disparities, are proposed for elimination.
• oThe Administration proposes to create five new institutes by combining 15 existing institutes. The new institutes are the National Institute on Body Systems Research; the National Institute on Neuroscience and Brain Research; the National Institute of General Medical Sciences (NIGMS); the National Institute of Disability Related Research; and National Institute on Behavioral Health.
• oThe budget proposal includes the 15% cap on facilities and administrative costs.
• Elimination of HRSA
• oThe budget proposes a $1.73 billion funding reduction, including a $1 billion cut to health workforce programs, such as the Title VIII Nursing Workforce Programs. Specifically, the budget eliminates all Title VIII programs, except for the NURSE Corps program. It maintains $6 billion for "priority activities" that will now fall under the AHA, previously housed within HRSA.
• Elimination of the Administration for Community Living (ACL)
• oACL has been combined with the Administration for Children and Families (ACF) to form the new Administration for Children, Families, and Communities (ACFC). The National Institute on Disability, Independent Living, and Rehabilitation Research (NIDILRR) has been retained within this new entity; however, the administration has proposed $100 million in funding, which represents a $19 million cut.
• $4.1 billion for the CDC, a decrease of $4.9 billion from FY 2024
• oThe budget eliminates the CDC's National Center for Chronic Disease Prevention and Health Promotion and National Center for Injury Prevention and Control.

It's important to note that the President's budget request is only a proposal. Congress ultimately determines which agencies and programs are authorized and their funding levels. The House Appropriations Committee will not consider the Labor-HHS bill until late July. We will not have more details on how Congress intends to appropriate funds until that markup occurs. 

Updates on Budget Reconciliation

Last month, the House passed the One Big Beautiful Bill Act (H.R. 1) by a vote of 215-214. This bill intends to advance President Trump's domestic policy agenda. Specifically, the House-passed reconciliation package includes significant cuts to Medicaid, including mandatory work requirements and more frequent eligibility verification. The Congressional Budget Office (CBO) projected that 7.8 million Americans would lose their Medicaid coverage if this bill were enacted.

This week, the Senate Finance Committee (SFC) released its portion of the reconciliation package, including policies related to the Affordable Care Act (ACA), Medicaid, Medicare, taxes, and more. The bill includes Medicaid provisions similar to those included in the House-passed bill; however, it includes changes to policies related to state provider taxes, state directed payments, and work requirements.

Senate Republicans plan to vote on the reconciliation package the week of June 23, with the rest of the month set aside for conference negotiations to reconcile the House and Senate bills. Speaker of the House Mike Johnson (R-LA) remains optimistic about meeting the July 4 deadline for sending the bill to the President's desk for signature.

Senate Labor-HHS Appropriations Subcommittee Questions Dr. Bhattacharya on NIH Budget 

 On June 10, Dr. Jay Bhattacharya, Director of the National Institutes of Health (NIH) testified before the Senate Appropriations Labor-HHS Subcommittee on the President's proposed FY 2026 budget request for the agency. A central theme of the hearing was the concern over significant funding cuts and their impact on the NIH's ability to maintain its global leadership in biomedical research. In her opening remarks, Committee Chair Susan Collins (R-ME) called the administration's proposal to reduce the NIH budget by 40% "disturbing." Dr. Bhattacharya emphasized that the NIH budget is a collaborative effort between the agency and Congress and affirmed his commitment to working closely with lawmakers on its implementation. In response to concerns about reduced funding, he noted that he established an appeals process for overturned grant decisions.

Senator Jeff Merkley (D-OR) emphasized the critical role nurses play in the health care system and underscored the value of NIH-supported research in addressing the challenges facing the nursing workforce. He questioned Dr. Bhattacharya on how the NIH intends to sustain this research in light of the proposed elimination of the NINR. In response, Dr. Bhattacharya acknowledged the contributions of nurses and affirmed the importance of continuing nursing research, stating that ensuring the work gets done is more important than which institute carries it out.

NIH Rehab Conference Rescheduled for August 6

The National Center for Medical Rehabilitation Research at the Eunice Kennedy Shriver National Institute of Child Health and Human Development (NICHD) and the NIH's Medical Rehabilitation Coordinating Committee have rescheduled the Rehabilitation Research 2025: Rehabilitation for All Conference to take place on August 6. This conference will take place virtually from 9 am to 5 pm ET. In accordance with the 21^st Century Cures Act to improve medical rehabilitation research at the NIH, the conference will focus on a wide range of rehabilitation topics. Please see here for the link to register.

Notice of Funding Opportunities

Below is a list of other funding opportunities for interested ARN members.

• Innovations for Healthy Living - Improving Minority Health and Eliminating Health Disparities (R43/R44 - Clinical Trial Optional)(RFA-MD-24-006)
• NIH Pathway to Independence Award (Parent K99/R00 Independent Basic Experimental Studies with Humans Required) (PA-24-195)
• NIH Pathway to Independence Award (Parent K99/R00 Independent Clinical Trial Required) (PA-24-193)
• Advancing Healthcare for Older Adults from Populations that Experience Health Disparities (R01 - Clinical Trial Optional) (PAR-24-273)
• Academic Research Enhancement Award (AREA) for Undergraduate-Focused Institutions (R15 Clinical Trial Required) (PAR-25-148)