HHS Transformation Underway - Impacts to Healthcare, Grants, and Rulemaking

Welcome to this week’s HHS News Roundup—where we break down the top headlines shaping health policy, public programs, and your community. The biggest story out of the Department of Health and Human Services is the sweeping departmental restructuring—Secretary Robert F. Kennedy, Jr. has announced what he calls a “Transformation to Make America Healthy Again,” a move expected to save taxpayers $1.8 billion annually. This overhaul, aligned with President Trump’s recent government workforce efficiency executive order, is already underway. HHS has started reducing the federal workforce and remaking internal structures, with major impacts set for the agencies overseeing Medicare, Medicaid, public health efforts, and more.

Secretary Kennedy remarked, “We’re committed to building a leaner, more responsive HHS that delivers for every American.” In the coming weeks, more details are expected as the Senate prepares to vote on the federal healthcare budget—a decision that could reshape funding for key safety nets, hospitals, and private insurers. Healthcare organizations have been put on notice to track which HHS offices will retain authority over critical programs and to prepare for policy shifts that could affect everything from grants to regulatory oversight.

Another headline this week: HHS has revised its decades-old policy on public input for new rules. Agencies will now be able to bypass the usual notice-and-comment requirements on regulations involving grants, benefits, and contracts. This may mean faster implementation of certain changes, but it also reduces opportunities for public feedback unless specifically required by law. The department has also broadened the “good cause” exemption, allowing expedited action in more situations. As a result, both state and local governments and private organizations may see new rules rolled out with less warning—and will need to stay alert for updates.

HHS is also spotlighting May as National Physical Fitness and Sports Month, urging Americans to stay active and informed about the benefits of physical activity, regardless of age or ability. Look for local events and resources sponsored by the Office of Disease Prevention and Health Promotion.

For businesses, these structural changes could mean new compliance obligations and funding adjustments, while state agencies may need to adapt to revised federal oversight and support. Internationally, HHS’s evolving stance—especially on rulemaking transparency—may affect how global partners engage on health equity, emergency preparedness, and research.

Want to get involved or stay updated? Follow HHS on social media, watch for Press Room updates, and consider submitting feedback when opportunities arise. As HHS reshapes itself, your input on public health priorities remains vital. We’ll keep tracking the next round of budget decisions and departmental announcements—so stay tuned for what comes next and visit hhs.gov for the latest updates.