the American Association of Colleges of Osteopathic Medicine

This analysis was prepared by Crossroads Strategies, LLC on behalf of AACOM.

President Joe Biden’s $7.3 trillion FY 2025 budget aims to help middle-class Americans by expanding the Child Tax Credit, bolstering Medicare drug pricing negotiations, focusing on national paid family leave programs, and promoting affordable housing. The budget includes cutting the deficit by $3 trillion over the next ten years through adjustments to the tax code and cutting subsidies.

Department of Health and Human Services (HHS)

HHS Funding

The Budget requests $130.7 billion in discretionary and $1.7 trillion in mandatory budget authority for FY2025. At this time, Congress has yet to finalize discretionary funding for FY 2024.

Health Resources and Services Administration (HRSA)

The Budget requests $16.3 billion, an increase of $2 billion from FY 2023. This includes $8.3 billion in discretionary budget authority and $9 billion in mandatory funding and other sources.

$8.2 billion for Health Centers, $1.9 billion in discretionary funding and $6.3 billion proposed mandatory resources;
$2.6 billion for HRSA workforce programs;
$13 million for the Rural Residency Program;
$51 million for the Medical Student Education Programs;
$47 million for Area Health Education Centers;
$916 million for the National Health Services Corps, $126 million discretionary spending and $790 million proposed mandatory spending;
$50 million in Training in Primary care Medicine;
$18 million in Public Health and Preventative Medicine Programs;
$385 million for Children’s Hospital Graduate Medical Education in FY2025. This remained consistent with FY2024 levels;
$320 million in mandatory spending to reauthorize the Teaching Health Centers Graduate Medical Education Program;
$42.2 million for the Geriatrics Programs;
$28.4 million for Centers of Excellence;
$16 million for the Health Careers Opportunity Program; and
$55 million for Scholarships for Disadvantaged students.

Substance Use and Mental Health Services Administration (SAMHSA)

The budget apportions $8.1 billion for SAMHSA, an increase of $612 million above FY 2023.

$3.5 billion for mental health services programs, an increase of $736 million over FY 2023;
$4.2 billion for substance use services;

Agency for Healthcare Research and Quality

The budget requests $513 million for AHRQ, including $387 million in budget authority and $126 million in mandatory transfers from the Patient-Centered Outcomes Research Trust Fund.

National Institutes of Health (NIH)

The budget provides $50.1 billion in discretionary and mandatory resources for NIH, an increase of $2.4 billion above FY 2023.

$7.8 billon for the National Cancer Institute;
$716 million in discretionary funds to support the Cancer Moonshot initiative, an increase of $500 million above FY 2023;

Advanced Research Projects for Health (ARPA-H)

The budget provides $1.5 billion to ARPA-H, flat with FY 2023.

Center for Medicare and Medicaid Innovation

The budget provides $1.3B for the Center, an increase of $300 million from FY 2024.

Advance Maternal Health and Health Equity

The budget includes $1.8 billion for HRSA Maternal and Child Health programs.

Expand Access to Vaccines

The budget proposes establishing the Vaccines for Adults Program, providing $1 billion, and increasing funding for the Vaccines for Children program by $2.8 billion from FY 2023.

Future Pandemics and Advances to Health Security for Other Biological Threats

The budget proposes $28.9 billion in total resources across HHS to support and bolster the nation’s biodefense and public health preparedness and response capabilities.

$8.9 billion in discretionary funding for preparedness efforts across the Department;
$95 million in the Administration for Strategic Preparedness and Response;
$10 million in supply chain coordination within HHS;
$60 million for CDC to manage the Response Ready Enterprise Data Integration platform, an increase of $38 million from FY 2023;
An increase of $20 million above FY2023 for Biomedical Advanced Research and Development Authority;

Centers for Disease Control and Prevention (CDC)

The budget expands CDC’s funding to $19.8 billion, an increase of $4.5 billion from FY 2023. This includes $8.6 billion in discretionary funding, $1.2 billion from the Prevention and Public Health Fund, and $10.0 billion for mandatory programs.

$732 million for Domestic Immunization infrastructure, $50 million above FY 2023;
$756 million to support cancer prevention and control programs across CDC, an increase of $100 million above FY 2023;
$943 million in discretionary funding for injury prevention activities, an increase of $182 million above FY 2023;

Food and Drug Administration (FDA)

The budget requests $7.2 billion for FDA, an increase of $495 above FY 2023. This includes $3.7 billion in discretionary budget authority and $3.5 billion in user fees.

$12 million to enhance the FDA’s capabilities for building resilience to, and responding to both supply-chain and demand driven medical and food shortages;
$670 million in mandatory funding for strengthening biodefense to protect against twenty-first century biothreats;

HIV/AIDS Epidemic

The budget repurposes $9.8 billion over 10 years for the mandatory Pre-Exposure Prophylaxis (PrEP) Delivery Program to end the HIV epidemic.

$157 million to provide prevention and treatment services to people at high-risk for HIV transmission;
$2.6 billion for the Ryan White HIV/AIDS program;
$175 million for the Ending the HIV Epidemic in the United States Initiative, an increase of $10 million from FY 2023;

Department of Education (ED)

ED Funding

The budget requests $82.4 billion in discretionary funding ED, a $3.1 billion or 4% increase from the FY 2024 annualized CR level.

Pell Grant Increases

The budget includes $34 billion for Pell Grants, a $6 billion increase over FY 2023. The maximum award is set at $8,145 for award year 2025-26, an increase of $750 over the 2024-2025 award year.

Investments in Services for Student Borrowers

The budget provides $2.7 billion for Student Aid Administration, including to the Department of

Education’s Office of Federal Student Aid (FSA), a $625 million increase over the fiscal year 2024

annualized CR level. It also continues to offer numerous loan programs to a total of $93 billion dollars for FY 2025, $17 billion of which are subsidized Stafford loans.

Equity in Higher Education

The budget contains numerous programs to enhance equity in education.

$80 million for the Child Care Access Means Parents in School (CCAMPIS) program;
$52.1 million for Special Programs for Migrant Students;
$30.0 million to fund the Augustus F. Hawkins Centers of Excellence program, which funds teacher education programs at HBCUs;

Department of Treasury

Treasury Funding

The Budget raises revenue through increasing taxes on corporations and high-earning individuals. Over the next decade, it estimates revenue increases of $4.9 trillion offset by spending increases of $600 billion.

$2.1 trillion from reforming business taxation;
$632 billion from reforming international taxation;
$1.8 trillion from strengthening taxation of high-income taxpayers;

Income Exclusion for Student Debt Relief

The budget would make permanent the American Rescue Plan Act of 2021 (ARP)’s exception to the treatment of forgiven loan amounts as gross income for certain qualifying student debt, which costs $1.7B over the next decade.

Department of Veterans Affairs (VA)

VA Funding

The total 2025 request for VA is $369.3 billion, a $32.9 billion increase above the 2024 estimate level. The discretionary budget requests $134 billion, a $8.9 billion decrease from 2024, and the mandatory funding request is $235.3 billion, an increase of $41.8 billion from 2024.

Prioritize VA Medical Care

The budget includes discretionary funding of $112.6 billion for VA Medical Care programs.

The PACT Act’s Toxic Exposures Fund (TEF) is funded at $21.5 billion.

Improve Veterans’ Mental Healthcare Services

The budget’s funding for mental health, including suicide prevention, is $17 billion, an increase of $1B from 2024’s estimate.

An additional $583 million for suicide prevention outreach programs.

Opioid Prevent, Treatment, and Program Costs

The budget invests $713 million toward opioid use disorder prevention and treatment programs.

VA Prosthetic and Medical Research Funding

The budget request for Medical and Prosthetic Research appropriation is $868 million, a decrease of $24 million from 2023.

Department of Labor (DOL)

DOL Funding

The budget request includes $13.9 billion in discretionary budget authority, and an additional $48 billion in mandatory spending.

Workforce Development

The budget includes $10.3 billion for the Employment and Training Administration, a $109 million increase over FY 2023.

$3.6 billion in Workforce Innovation and Opportunity Act and Employment Service State Grants;

Registered Apprenticeships (RA)

The Budget requests $335 million to expand RA opportunities, a $50 million increase above FY 2023.

Department of Defense (DOD)

DOD Funding

The budget requests $849.8 billion for DOD, a $33.9 billion increase over FY 2023.

$49.2 billion for Nuclear Enterprise Modernization;
$147.5 billion for strategic readiness and preparedness of the Joint Force;
$143.2 billion Research, Development, Test and Evaluation (RDT&E) budget;

Enhance Biodefense and Pandemic Preparedness

The budget largely maintains the biodefense increases from FY 2024, and also adds $42 million to improve early warning of novel and emerging pathogens.

Department of Energy (DOE)

DOE Funding

The budget proposes $51 billion in budget authority for FY 2025, a $3.6 billion increase from FY 2023.

$8.6 billion for the Office of Science, advancing the CHIPS and Science Act’s goals;
$10.6 billion in DOE climate and clean energy research, development, demonstration, and deployment programs;

Clean Energy Infrastructure

The budget invests $1.6 billion to support clean energy workforce and infrastructure projects across the Nation, more than double the 2021 enacted level and 29 percent above the 2023 enacted level.

$385 million to weatherize and retrofit homes of low-income Americans;
$113 million for the Office of Manufacturing and Energy Supply Chains to strengthen domestic clean energy supply chains;
$102 million to support utilities and State and local governments in building a clean energy grid;

Department of Agriculture

USDA Funding

The budget requests $231 billion, including $190 billion for mandatory programs and $41 billion for discretionary programs.

Connect All Americans to High-Speed, Affordable, and Reliable Internet

The budget requests $112.4 million to reach more communities, homes, and businesses with reliable internet access, following up on the Bipartisan Infrastructure Law’s goal to ensure that every American has access to affordable broadband internet.