A leaked Department of Health and Human Services (HHS) document has revealed a proposed $40 million cut to various healthcare workforce development programs, sending ripples of concern through the nursing home industry. The cuts, representing a significant portion of the agency’s discretionary spending in the preliminary 2026 budget, include several initiatives critical to building and maintaining a skilled workforce in long-term care.
According to the Washington Post, which also obtained the 64-page document, these proposed reductions come as HHS Secretary Robert F. Kennedy Jr. aims to streamline the agency. The plan outlines the creation of a new entity, the Administration for a Healthy America (AHA), under which many existing HHS agencies would be consolidated.
However, the potential impact on programs directly supporting the nursing home sector is generating considerable anxiety among industry leaders. Targeted programs slated for cuts include geriatrics, advanced education in nursing, nursing workforce diversity, and nurse education, practice, and retention. These programs play a vital role in recruiting and training the nurses and other healthcare professionals essential for providing quality care in nursing homes.
“These proposed cuts are deeply concerning for the future of long-term care,” said Maria Gonzalez, a nursing home administrator in New Jersey. “At a time when we are already facing significant workforce challenges, reducing funding for crucial nursing education and training programs will only exacerbate the problem.”
The nursing home industry has long grappled with staffing shortages, a challenge that has been amplified in recent years. According to the American Health Care Association and National Center for Assisted Living (AHCA/NCAL), nursing homes in the U.S. are currently facing a workforce crisis, with 99% of nursing homes reporting staffing shortages in 2022. These shortages impact not only the workload of existing staff but also the quality of care that facilities can provide to residents.
The proposed budget also suggests significant cuts to other health-related agencies, including a potential 44% reduction for the Centers for Disease Prevention and Control (CDC) and a 40% decrease for the National Institutes of Health (NIH). While these cuts may not directly target nursing home workforce programs, they could have broader implications for public health and research relevant to the long-term care sector.
The document attributes the proposed budget adjustments to President Trump’s commitment to balancing the budget while prioritizing critical nondefense spending areas. However, industry advocates argue that investing in the healthcare workforce, particularly in sectors like long-term care, should be considered a critical priority.
The coming months will be crucial as the president’s preliminary budget moves through the legislative process. Nursing home operators and advocacy groups will likely be working to highlight the potential negative consequences of these proposed cuts on the industry’s ability to attract and retain a qualified workforce and, ultimately, on the care provided to residents.