The Department of Health and Human Services is on a mission to modernize, and its budget proposal for fiscal year 2025 — which includes $1.7 trillion in mandatory proposed budget authority and $130.7 billion in discretionary funding — reflects its aggressive pursuit of key transformation goals.
Government and industry leaders will convene to discuss HHS’ top mission objectives at the Potomac Officers Club’s 2024 Healthcare Summit on Dec. 11. Don’t miss this exciting opportunity to hear from a wide range of healthcare experts — secure your spot at the 2024 Healthcare Summit today!
These funds, which represent an increase of over $140 million from the HHS’ FY 2024 budget, will enable the department to make significant investments into new technologies and programs that will shape the future of government healthcare. Get a glimpse into HHS’ top budget priorities below.
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What Is HHS Investing In?
HHS’ budget covers a broad spectrum of federal healthcare demands, including care improvements, advanced research projects and more. Below are three notable focus areas with the request.
Expanding Coverage and Lowering Healthcare Costs
Improving Medicare and Medicaid is a major priority for HHS. With the FY25 funding, the department hopes to continue lowering drug costs and bolster Medicare’s ability to negotiate drug prices with manufacturers. Other aspects of this goal include expanding Medicare solvency and upgrading health centers, among other efforts.
Research & Development
In 2025, HHS will continue to invest in cutting-edge health research, including programs like Cancer Moonshot, which aims to reduce the cancer death rate by 50 percent or more over the next 25 years. The budget will fund other key research projects within the National Institutes of Health and the Advanced Research Projects Agency for Health.
Customer Experience
As HHS grows its care offerings, it is critical that customers are able to use federal healthcare tools with ease. To ensure a positive customer experience, or CX, HHS wants to simplify the process of enrolling in benefit programs, introduce a new online claims page on Medicare’s website, widen access to decision making support for older adults and more.
HHS Agency Budgets
CMS
HHS’ 2025 budget request reserves approximately $1.6 trillion in mandatory and discretionary outlays for CMS. These funds will be distributed across several initiatives, including:
- Extending Medicare solvency without cutting benefits
- Making Medicaid and the Children’s Health Insurance Program, or CHIP, more accessible
- Investing in private insurance to expand healthcare coverage throughout the nation
- Implementing new Health Care Fraud and Abuse Control resources
- Program management needs
Notable allocations include $4.1 billion for Health Care Fraud and Abuse Control resources; $273 billion for investments in private healthcare; and $150 billion for expanding Medicaid home and community services.
NIH
NIH comprises 27 institutes, each dedicated to a specific health research area. HHS has requested $46.4 billion to fund these organizations in 2025.
The National Cancer Institute, which requested $7.8 billion, accounts for the largest portion of NIH’s budget. The National Institute of Allergy and Infectious Diseases has the second highest request at $6.6 billion, and the National Institute on Aging is third, with $4.4 billion requested.
Some of NIH’s top research priorities include:
- Ending the HIV epidemic in the U.S.
- Improving maternal health
- Health disparities and inequalities
- Artificial intelligence
CDC
The Centers for Disease Control and Prevention’s FY25 budget request totals approximately $9.7 billion, a $499.2 million increase from the FY 2023 enacted amount. Its most significant investments include:
- $3.1 billion for protecting Americans from infectious diseases
- $2.7 billion for preventing the leading causes of disease, disability and death
- $943 million for defending Americans from natural and bioterrorism threats
Other major budget priorities include monitoring health and ensuring laboratory excellence; cross-cutting services; ensuring global disease protection; and keeping Americans safe from environmental and work-related hazards.
A notable increase went to youth and community violence prevention, which was allocated $100 million more than it received last year.
Other Agencies
The CDC, NIH and CMS are just three of the many agencies that contribute to HHS’ mission. The department’s FY25 budget request also dedicates:
- $18.7 billion to the Health Resources and Services Administration
- $9.8 billion to the Substance Abuse and Mental Health Services Administration
- $9.4 billion to the Indian Health Service
- $3.9 billion to the Food and Drug Administration
- And billions more to additional organizations
Get a closer look at how HHS agencies are leveraging these funds to drive healthcare missions forward at the 2024 Healthcare Summit, where you will have the opportunity to learn from HHS officials and industry leaders. Join the 2024 Healthcare Summit to unlock all the insights these experts have to offer.