Senate panel presses HHS on sweeping reorganization and withheld appropriations

Chairwoman Shelley Moore Capito, chair of the Senate Appropriations Subcommittee on Labor, Health and Human Services, told Secretary Kennedy the hearing was "an important opportunity for the subcommittee to hear from you on the HHS's budget proposal and better understand your priorities for fiscal year 2026." Capito asked the department to consult closely with the committee as it moves forward with reorganization plans.

Ranking Member Tammy Baldwin said the department's reorganization and staffing actions are already harming programs and families. "This is flatly unacceptable when we are talking about taxpayer dollars," Baldwin said, adding that the department had provided a plan with over 530 program lines marked with asterisks instead of dollar amounts. Baldwin also accused the administration of "stopping billions of dollars in NIH funding" and warned the committee that the department appeared to be implementing its proposed FY2026 cuts now.

Secretary Kennedy defended the reorganization as necessary to reduce bureaucracy and to "make America healthy again," saying the budget aims to "do more, a lot more with less." He told the committee HHS will "shift funding away from bureaucracy toward direct impact," and that the department intends to preserve legacy programs such as Medicare, Medicaid and Head Start while consolidating other functions.

Senators from both parties described immediate effects they say are visible in their states. Baldwin and other members reported paused grants, staff furloughs or terminations, and delays in spending congressionally appropriated funds for programs including NIH grants, Head Start, and public health support to state and local health departments. Several senators demanded that HHS provide a detailed operational spending plan; Secretary Kennedy repeatedly said some decisions are being coordinated with the Office of Management and Budget.

The committee also heard multiple references to a recent court order restricting discussion of HHS's reorganization; Secretary Kennedy said that a temporary restraining order (TRO) had limited what he could publicly describe about the reorganization timeline. Senators urged immediate transparency so Congress can exercise its appropriations oversight. The hearing record remains open to additional questions for the record and members may submit follow-ups as specified by the subcommittee.

The exchange left unresolved whether HHS's actions constitute lawful impoundment of funds; senators emphasized that Congress appropriated funds for FY2025 and the committee must be able to track how those funds are being spent.