18% Cut to NIH, 21% Cut to USDA in President’s Proposed Budget; Regulatory Reform Major Focus

President Donald Trump (R) released his FY 2018 federal budget this morning, and included in the proposal is an almost 20% decrease in federal funding for the National Institutes of Health (NIH). Spending for NIH would decrease from the currently appropriated $31.7 billion to $25.9 billion. The budget states that “major reorganization” and structural changes would occur within the NIH to ensure that resources are refocused on high priority research and training. The President also aims to reduce regulatory burden throughout various federal government agencies, including the NIH, in which administrative costs would be reduced and federal contributions to research funding would be rebalanced. The budget states very clearly that the President plans to remove unnecessary and costly regulations, although it is not yet clear which regulations pertaining to biomedical research would be affected. At this afternoon's White House Press Briefing, Press Secretary Sean Spicer stated that the NIH must "focus on efficiencies and doing what we do better." To accomplish this, he used combining facilities as an example.

“America First - A Budget Blueprint to Make America Great Again,” would reduce funding to the U.S. Department of Health and Human Services (HHS) from $84.1 billion to $69 billion, based on the President’s plan to ‘eliminate programs that are duplicative or have limited impact on public health and well-being.” Plans for HHS funding call for reforming public health programs and reforming the Centers of Disease Control and Prevention (CDC) via block grant programs that would give states more power in addressing statewide public health challenges. Additionally, the proposal would make adjustments to the Food and Drug Administration (FDA) initiatives, and includes “a package of administrative actions designed to achieve regulatory efficiency and speed the development of safe and effective medical products.”

Funding for the U.S. Department of Agriculture would be reduced by 21 percent, from $22.6 billion to $17.9 billion. The budget would also make major funding cuts in other federal agencies including the U.S. Department of State, Department of Housing and Urban Development and the Environmental Protection Agency. Trump’s primary goal for the FY 2018 budget is to increase federal defense spending by $54 billion, with targeted reductions in other agencies to offset this cost.

The federal government is currently operating on a Continuing Resolution (CR) that is set to expire on April 28, 2017.

Next, the budget proposal will be sent to the Hill, where the House and Senate Appropriations Committees will review it thoroughly. Click here to read the President’s budget blueprint.