Reorganization, Personnel Cuts Hit HHS and ACF

The Trump administration has begun implementing substantial personnel cuts that are affecting numerous federal agencies across the Department of Health and Human Services (HHS), including the Administration and Children and Families (ACF). The effects of the cuts are not yet fully known, but they are likely to affect child welfare and adoption programs substantially.

The effort began on Thursday, March 27, when HSS announced cuts in agency personnel as part of a larger effort to transform and realign the department in accordance with Secretary Robert F.  Kennedy’s Make America Healthy Again (MAHA) initiative.

Overall, the administration plans to reduce government staff positions at HHS from 82,000 to 62,000. It is also planning a substantial agency reorganization, with the number of divisions reduced from 28 to 15.

At least as initially described, the workforce reductions and reorganization appeared to be primarily focused on the agencies most directly related to the administration’s MAHA agenda, specifically the Food and Drug Administration, Centers for Disease Control, and National Institutes of Health.

As workforce reductions began to be implemented on Tuesday, April 1, however, it became apparent that the impact is wider than originally anticipated. The Administration for Children and Families, which was not cited as a primary target in the original announcements, appears to be suffering significant staff cuts, many of which seem likely to directly affect child welfare-related programs. These include:

  • Overall Staff Reductions: According to official estimates, ACF employs approximately 1,700 staff, including 1,200 federal employees and 500 contractors. According to several sources within the agency, it has reportedly lost an estimated 500-600 personnel during the current reductions in force. Some of these were through voluntary separations and early retirements.

  • Program-specific Cuts: Several program offices within HHS have been closed entirely. This reportedly includes staff related to the Social Services Block Grant (SSBG) program, which has seen its workforce reduced to either zero or one staff person, depending on the source. SSBG provides about 10 percent of federal support for child welfare programs. The Children’s Bureau Division of State Systems (DSS), which supports state and tribal child welfare information systems, has also reportedly been eliminated. Other ACF offices reportedly affected include Head Start, the Low Income Energy Assistance Program (LIHEAP), and the Office of Child Care.

  • Regional Offices: Half (five) of the ten regional offices, which work to support states and tribes, have been closed. These include offices in Boston, New York, Chicago, San Francisco, and Seattle (regions 1, 2, 5, 9, and 10). Duties formerly assigned to these offices are being reassigned to other regional offices.

  • Medicaid: CMS, which includes Medicaid, will lose 300 employees. However, according to the original HHS announcement, “Medicare, Medicaid, and other essential health services remain intact.”

Communications from HHS have been limited since the new administration began on January 20. HHS communications offices have also experienced significant staff reductions, so external communications from ACF and the Children’s Bureau are likely to be limited.

The administration’s workforce and budgetary changes are nevertheless being closely monitored by Congress. On April 1, the Senate Health, Education, Labor and Pensions (HELP) Committee announced that it will be holding a hearing on the HHS efforts on Tuesday, April 8. Sens. Bill Cassidy (R-LA) and Bernie Sanders (I-VT), the committee chair and ranking member, have invited Secretary Robert F. Kennedy Jr. to testify.

“The news coverage on the HHS reorg is being set by anonymous sources and opponents are setting the perceptions,” Senator Cassidy said in a statement. “In the confirmation process, RFK committed to coming before the committee on a quarterly basis. This will be a good opportunity for him to set the record straight and speak to the goals, structure and benefits of the proposed reorganization.”

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Congress Considers Budget Cuts to Medicaid, Other Social Services