Navigating the New Administration’s Economic Impact on Public Health
- JoAnn Andrews
- Apr 2
- 3 min read
Local health department administrators are confronting a whirlwind of change from the new presidential administration. Widespread federal health agency layoffs and budget restructurings dominate the headlines, creating uncertainty for those on the front lines of community health. Amid this upheaval, one thing is clear: now more than ever, local health departments must understand and communicate their economic impact to survive and thrive. In this post, we explore how recent federal changes affect public health and why demonstrating the fiscal value of your department’s work – through data on prevention, cost savings, and community impact – is absolutely critical.
Federal Shake-Up and Funding Disruptions
In late March 2025, the Department of Health and Human Services (HHS) announced a dramatic restructuring that will eliminate 20,000 jobs and consolidate 28 divisions into 15. The new administration’s cost-cutting drive, led by the President’s Department of Government Efficiency (DOGE) initiative spearheaded by Elon Musk, is aggressively reducing the size and scope of federal health agencies. HHS Secretary Robert F. Kennedy Jr. stated these layoffs are meant to reduce “bureaucratic sprawl” and realign priorities. But public health leaders warn the cuts are a blow to public health, medicine and research potentially undermining outbreak response and critical programs.
For local health departments, these federal shifts aren’t just D.C. news – they trickle down in very real ways. The Centers for Disease Control and Prevention (CDC), for instance, is reportedly clawing back over $11 billion in COVID-19 funds from states as pandemic efforts wind down. Even more alarming, the new DOGE office abruptly canceled a $190 million CDC grant that funded 140 health department jobs across Alabama. This cancellation, announced without warning, left Alabama officials scrambling to fill gaps in infectious disease programs. “What this means is that investigations of outbreaks in prisons, nursing homes, day care centers are going to go without personnel… so many communicable diseases may go undetected.” Congresswoman Terri Sewell warned, emphasizing that the cuts will “affect the most vulnerable in our communities.”
Why Economic Impact Matters More Than Ever
With federal support in flux, local agencies must be prepared to justify every dollar of their budget and prove that cutting public health is a false economy. Prevention has long been undervalued in budgeting. As one columnist put it, “our health system spends almost everything on care for people who are already sick. Spending on prevention… is too often viewed as a luxury, when it actually saves money and saves lives.” In fact, research shows that investing just $10 per person per year in community-based public health can save over $16 billion within five years – a $5.60 return for every $1 invested.
Amid the current budget turmoil, communicating this ROI of prevention is critical. When elected officials or boards face tough budget choices, they need to see public health not as an expense, but as an investment that pays off.
How AHP Can Help – Community Cost Analysis & Economic Impact Analysis
Crafting these messages can be daunting, especially when resources are already stretched. This is where Ascendant Healthcare Partners (AHP) steps in with purpose-built solutions. AHP offers two key services to help health departments quantify and communicate their value:
Community Cost Analysis: If your agency has completed a Community Health Needs Assessment (CHNA) and Community Health Improvement Plan (CHIP) in the last 3 years, AHP’s Community Cost Analysis builds on that by evaluating the cost to the community for each priority, comparing the scenario of addressing the issue versus not addressing it.
Economic Impact Analysis: Even beyond CHNAs, AHP’s signature Economic Impact Analysis™ service helps public health leaders and policymakers quantify both the cost of action and the cost of inaction on tough health challenges.
CTA: Contact AHP to schedule your Community Cost Analysis or Economic Impact Analysis now!
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