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President Releases FY 2021 Budget Proposal

President Trump on Feb. 10 released his proposed budget for fiscal year (FY) 2021, which outlines the administration’s policy priorities and proposes $94.5 billion in discretionary spending for the Department of Health and Human Services (HHS) — a 10 percent reduction from last year.

An accompanying HHS document offers more details on the department’s spending and proposed changes to programs under the budget proposal.

The proposal calls for significant cuts for Medicaid funding — $920 billion over 10 years — through policy changes that target program financing and waste reduction, including a call to finalize the Medicaid Fiscal Accountability Regulation.

Other proposals of interest to essential hospitals include:

  • new requirements for covered entities in the 340B Drug Pricing Program, including a user fee and expanded rulemaking authority for the Health Resources and Services Administration; and
  • an expansion of site-neutral payment policies to include all outpatient services at grandfathered hospital off-campus departments.

Contact Senior Director of Policy Erin O’Malley at eomalley@essentialhospitals.org or 202.585.0127 with questions.

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About the Author

Emily Schweich is a senior communications associate for America's Essential Hospitals.

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