Sponsored message
Audience-funded nonprofit news
radio tower icon laist logo
Next Up:
0:00
0:00
Subscribe
  • Listen Now Playing Listen
Civics & Democracy

On top of layoffs, HHS ordered to cut 35% of spending on contracts

A concrete building with rows of vertical windows on its facade. A brown sign with white lettering stands in front of it that reads, " United States department of Health and Human Services."
The Department of Health and Human Services is facing spending as well as staffing cuts.
(
Alex Brandon
/
AP
)

Truth matters. Community matters. Your support makes both possible. LAist is one of the few places where news remains independent and free from political and corporate influence. Stand up for truth and for LAist. Make your year-end tax-deductible gift now.

The Trump administration is requiring the Department of Health and Human Services to cut spending on contracts by 35%, HHS spokesperson Andrew Nixon confirmed to NPR.

The spending cut is across all divisions of HHS – which includes the Centers for Disease Control and Prevention, the National Institutes of Health, the Food and Drug Administration, the Centers for Medicare and Medicaid Services and other agencies.

This comes on the heels of a nearly 25% staff reduction at HHS.

"The 35% reduction in HHS contracts is a strategic initiative across all divisions of HHS, with the goal of cutting unnecessary spending, saving taxpayer dollars, and streamlining operations," Nixon wrote in a statement.

Latest Trump Administration news

"Every agency within HHS is committed to reducing contract expenditures by this target. These cuts are designed to ensure that every dollar is used more efficiently while continuing to focus on our core mission of improving public health and services," he added.

HHS fired thousands of staffers this week, acting on its plan to dismiss 10,000 people, on top of around 10,000 people already leaving the agencies under the Trump administration's Fork in the Road offer and early retirement.

Sponsored message

With health agencies reeling from layoffs, these spending cuts will further weaken public health in this country, said Dr. Robert Steinbrook, health research group director at the consumer rights advocacy group Public Citizen via e-mail. He called the cut "arbitrary and senseless."

"Amid the disorganized mass layoffs of HHS staff and the reorganization of the agency, the rushed cuts are more likely to cause problems than to accomplish anything constructive," he added.

"This is at best getting water from a stone," said Dr. Georges Benjamin, executive director of the American Public Health Association, via e-mail. "They seem to be on a quest to totally destroy the infrastructure of the nation's public health system. It's amazing that they are looking to cut the parts of our health system that give the best value for prevention and wellness."
Copyright 2025 NPR

You come to LAist because you want independent reporting and trustworthy local information. Our newsroom doesn’t answer to shareholders looking to turn a profit. Instead, we answer to you and our connected community. We are free to tell the full truth, to hold power to account without fear or favor, and to follow facts wherever they lead. Our only loyalty is to our audiences and our mission: to inform, engage, and strengthen our community.

Right now, LAist has lost $1.7M in annual funding due to Congress clawing back money already approved. The support we receive before year-end will determine how fully our newsroom can continue informing, serving, and strengthening Southern California.

If this story helped you today, please become a monthly member today to help sustain this mission. It just takes 1 minute to donate below.

Your tax-deductible donation keeps LAist independent and accessible to everyone.
Senior Vice President News, Editor in Chief

Make your tax-deductible year-end gift today

A row of graphics payment types: Visa, MasterCard, Apple Pay and PayPal, and  below a lock with Secure Payment text to the right