Trump budget cuts $163 billion as HHS dismantles disability agency

President Trump's FY 2026 budget proposal calls for cutting $163 billion in federal spending and slashing non-defense discretionary funding by 22.6%. The budget prioritizes defense and border spending while targeting domestic programs including disability services.

The Social Security Administration announced on Feb. 28, 2025 it would cut 7,000 jobs, reducing its workforce from approximately 57,000 to 50,000 employees. This represents a 12% cut and the largest staffing reduction in SSA history. The agency already operated at its lowest staffing levels in 50 years.

Phone wait times at SSA jumped from about one hour to over 90 minutes after the workforce cuts. Call volume increased from 6.5 million in November 2024 to 10.4 million by mid-2025. Remaining employees struggle to maintain basic services.

HHS Secretary Robert F. Kennedy Jr. ordered the March 27, 2025 restructuring that eliminated ACL as an independent agency. The 'Make America Healthy Again' restructuring scattered ACL's programs across other HHS divisions including Administration for Children and Families and CMS.

Nearly 50% of ACL staff were terminated, including budget, policy, evaluation, and communications offices. Over 450 disability advocacy organizations wrote to Congress urging opposition to the ACL breakup. Former ACL Administrator ABAlison Barkoff warned that 'the disability voice is being lost.'

Republican budget documents outline up to $2.3 trillion in Medicaid cuts over 10 years, including shifting to per-capita caps. Nearly 9 million people with disabilities rely on Medicaid for essential care that Medicare doesn't cover, including long-term supports and services.

ACL funds programs serving millions, including Meals on Wheels (261 million meals annually), independent living services (250,000 people), and the State Health Insurance Program (1.8 million Medicare and Medicaid beneficiaries). Breaking up ACL threatens coordination of these services.

A January 2025 survey of disability service providers found 69% turned away new clients and 39% closed programs or services in the previous year. Providers cite funding uncertainty and workforce shortages as they brace for deeper cuts.