What the 2026 HHS funding package means
- HHS funding proposed at $116.8 billion, up $210 million from 2025
- NIH set to receive $48.7 billion, with increases across cancer, neurology, and women’s health research
- CDC funding restored for HIV/AIDS, public health data modernization, and infrastructure programs
- Package signals short-term stability for medical research after repeated shutdown and cut threats
Earlier this week, US Congress unveiled a massive funding package affecting the Department of Health and Human Services (HHS) ahead of the January 30 government shutdown deadline.1
This latest government action impacting the research space would allocate $116.8 billion in 2026 funding to the HHS—an increase of $210 million from 2025. Within the HHS, the National Institutes of Health (NIH) would receive $48.7 billion, and the Centers for Disease Control and Prevention (CDC) would be budgeted $9.2 billion.2
In addition to impacting the HHS, the bipartisan bill also presented several measures aimed at the operation of pharmacy benefit managers.
2026 budget allocations
Under the NIH’s $48.7 billion proposal, $415 million above FY 2025:
- $7.4 billion will be allocated for the National Cancer Institute, a $128 million increase.
- $2.8 billion for the National Institute of Neurological Disorders and Stroke, up $126 million, including $90 million for Alzheimer’s disease and related dementias and $15 million for ALS research.
- $6.6 billion for the National Institute of Allergy and Infectious Diseases, a $23 million increase.
- $2.3 billion for the National Institute of Diabetes and Digestive and Kidney Diseases, up $16 million.
- $106 million for the Office of Research on Women’s Health, a $30 million increase.
- $5 million increase for the Office of Nutrition Research.
The CDC’s proposed 2026 budget includes:
- $1.1 billion for domestic and global HIV/AIDS programs, restoring funding eliminated in the House bill.
- $185 million for public health data modernization, $10 million above FY 2025 levels.
- $360 million for public health infrastructure and capacity, $10 million above FY 2025.
- $160 million for the Preventive Health and Health Services Block Grant, reinstated after being removed in the House bill.
HHS sees budget increase following proposed cuts in 2025
Medical research has been the target of heavy funding cuts since President Donald J. Trump took office in 2025. One of the administration’s largest proposed cuts to NIH funding came earlier in May with the 2026 federal budget aiming to cut $17.97 billion from the agency.3
The proposal also aimed to consolidate the NIH from 27 centers and institutes at the start of 2025, down to just five.
Agency forced to make slashes in response to 2025 shutdown
The newly proposed funding package by both congressional parties on January 20 may help the US government avoid yet another shutdown. Last October, the NIH was forced to roll out a contingency staffing plan that impacted funding in light of the last federal shutdown.
The agency stated that it would retain 4,477 (24.5%) of its staff during the shutdown to maintain operations. Another staffing plan released at the time revealed that 32,460 employees across the HHS would be furloughed during the shutdown.
Academic research impacted by 2025 funding cuts
While it remains to be seen what the rest of 2026 holds for medical research funding, 2025 was filled with challenges. In a video interview with Applied Clinical Trials, Craig Lipset, co-chair, Decentralized Trials & Research Alliance, highlighted the role of overhead in academic research amid last year’s funding slashes.
“Overhead in academic research supported by the NIH supports intramural research, those research initiatives that are being funded by the universities themselves, that often provide the seeding of what future research we want to go after, those are often the higher risk, smaller things to go after,” Lipset said. “Overhead supports our shared infrastructure, our labs, our technical equipment, and other shared resources that you couldn't put as a line item into just one direct budget, one set of direct costs for a grant, so there's tremendous consequences.”
References
1. Sahil Kapur, Kyle Stewart and Scott Wong. Congress releases massive funding bill ahead of shutdown deadline as ICE clash looms. NBC News. January 20, 2026. Accessed January 22, 2026. https://www.nbcnews.com/politics/congress/congress-releases-massive-funding-bill-ahead-shutdown-deadline-ice-cla-rcna254968
2. Labor, Health and Human Services, and Education, and Related Agencies: Summary of Fiscal Year 2026 Bill. Accessed January 22, 2026. https://democrats-appropriations.house.gov/sites/evo-subsites/democrats-appropriations.house.gov/files/evo-media-document/labor-health-and-human-services-education-and-related-agencies-summary.pdf
3. NIH Implements Contingency Plan as Government Shutdown Impacts Research Funding. Applied Clinical Trials. October 7, 2025. Accessed January 22, 2026. https://www.appliedclinicaltrialsonline.com/view/nih-implements-contingency-plan-government-shutdown-research-funding