- May 5, 2025
New "Skinny 2026 Budget" Will Disproportionatley Affect Rural Communities
Texas can’t afford cuts to rural health care.
Right now, 43% of rural hospitals in our state are already operating on a negative margin. Since 2010, 20 have closed—including one just last month, pushed to the brink by reimbursement issues and a shoestring budget.
The new federal budget threatens to slash Medicaid and public health programs—undermining the entire rural healthcare system. These cuts jeopardize more than hospitals; they threaten rural health departments, mental health services, workforce programs, and emergency response infrastructure.
When rural health systems fail, the health, economy, and resilience of entire communities unravel. And once these services are gone, they’re rarely replaced.
Texans deserve better.
FY 2026 President’s Discretionary Budget Summary
As proposed by the Trump Administration
Department of Health and Human Services (HHS)
Proposed budget: $93.8 billion
26.2% decrease from FY 2025 enacted levels
Funding details not specified for the following programs:
Federal Office of Rural Health Policy (FORHP)
Food and Drug Administration (FDA)
Indian Health Service (IHS)
Administration for Community Living (ACL)
Administration for Children and Families (ACF)
Health-Related Agencies (Discretionary Funding Changes)
Health Resources and Services Administration (HRSA):
$7.2 billion — 19.4% decreaseCenters for Medicare & Medicaid Services (CMS):
$3.0 billion — 18.3% decreaseCenters for Disease Control and Prevention (CDC):
$5.6 billion — 38.9% decreaseAgency for Healthcare Research and Quality (AHRQ):
$240 million — 35% decreaseNational Institutes of Health (NIH):
$29.3 billion — 38% decreaseSubstance Abuse and Mental Health Services Administration (SAMHSA):
$6.2 billion — 14.3% decrease
U.S. Department of Agriculture (USDA)
Proposed budget: $22.3 billion
18.3% cut to base discretionary funding
Rural Development Programs:
$721 million decrease