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Welcome to this week's HHS Update, where we break down the latest from the Department of Health and Human Services. I'm your host, and today we're diving into the major restructuring that's reshaping American healthcare.
The biggest headline this week continues to be HHS's massive transformation plan announced in March that promised to "Make America Healthy Again." This restructuring is well underway, with the department already implementing significant staff reductions since April 1st. As of March 7th, nearly 3,000 HHS employees had been fired, with about 600 subsequently rehired.
The plan aims to consolidate HHS's 28 divisions into just 15, centralizing core functions like HR, IT, and procurement. A key development is the creation of the Administration for a Healthy America, combining several offices to better coordinate health resources for low-income Americans.
HHS Secretary Kennedy has emphasized that these changes will save taxpayers $1.8 billion annually while making the department "more responsive and efficient." The Secretary insists that "Medicare, Medicaid, and other essential health services remain intact" despite the workforce reduction from 82,000 to 62,000 employees.
For American citizens, the department promises these changes won't impact critical services. However, healthcare advocates express concern about potential disruptions, particularly at agencies facing significant cuts – FDA will lose 3,500 employees, CDC 2,400, NIH 1,200, and CMS 300.
For businesses and organizations working with HHS, there's also a significant policy shift announced in February that limits public comment periods before finalizing rules. Companies and nonprofits will need to stay especially vigilant as HHS may now bypass the traditional notice-and-comment process for matters related to grants, benefits, or contracts.
Looking ahead, no additional cuts are currently planned, but HHS continues evaluating further streamlining opportunities. For anyone receiving HHS services, the department maintains a helpline and updated resources on HHS.gov to address concerns during this transition.
This transformation comes alongside other developments like the Summer Electronic Benefits Transfer program, which will provide $120 per child in food benefits during summer school closures, with $115.8 million allocated in the 2025-26 budget.
If you're affected by these changes or want to share feedback, the HHS Press Office is accepting public comments through their website.
That's all for today's update. I'm [your name], and I'll see you next week for more HHS developments.
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