HHS Announces Drastic Reorganization, Leading to Mass Layoffs
March 28, 2025

On March 27, the U.S. Department of Health and Human Services (HHS) announced an initiative to drastically restructure the department in accordance with the February 11 Executive Order, “Implementing the President’s ‘Department of Government Efficiency’ Workforce Optimization Initiative.” This reorganization effort will reduce the HHS workforce by about 10,000 full-time employees as well as fold entire agencies into new entities. Taking into account other recent reduction in workforce efforts – a hiring freeze disallowing agencies from filling open positions, the “Fork in the Road” program allowing federal employees to opt-in to a deferred resignation initiative, and previous layoffs that have already been implemented – the HHS workforce is projected to be cut by nearly 25 percent in totality.

At this time, AMCHP is in conversation with several partners, including a plethora of coalition partners, Members of Congress, and federal agency partners, to ascertain further details and seek clarity around potential implications to federal, state, and local governmental health programs, especially maternal and child health programs. This remains a rapidly evolving situation, and we will share more details as they become available.

AMCHP members are welcome to join us at our next all-member call on April 4 as this story continues to unfold. Until then, please don’t hesitate to be in touch with AMCHP’s Chief of Policy, Government Affairs, and Communications, Sherie Lou Santos, at ssantos@amchp.org