ANCOR Issues Statement on President’s FY 2027 Budget

On April 3, President Trump released his fiscal year (FY) 2027 budget request which includes a 12.5 percent decrease to HHS from 2026 levels and elimination of the Administration for Community Living (ACL). Considered in the broader context of recent statements from the President and CMS Administrator Oz, the President’s budget request makes us deeply concerned about potential long-term impacts on community providers. In response to the release, ANCOR CEO Barbara Merrill issued the following statement:

“We are deeply troubled by continued threats to critical home- and community-based services (HCBS), especially the White House’s recommendation to reduce HHS funding and eliminate the Administration for Community Living. Amplifying our concerns are recent statements from administration officials questioning the importance of federal funding for these crucial services.

“Cutting more funding from Medicaid—after decades of underinvestment and on top of significant cuts included in H.R. 1—creates great uncertainty for people with intellectual and developmental disabilities (I/DD), their families, and the community providers who support them.

“Community-based services are uniquely vulnerable to Medicaid funding reductions because, unlike mandatory benefits, they are not guaranteed under federal law. History shows us that when states confront budget shortfalls, programs like the Medicaid HCBS program are among the first to be scaled back. That troubling pattern is already emerging in states that are proactively cutting HCBS funding now in anticipation of new federal funding restrictions in Medicaid as the 2025 budget reconciliation law is implemented.

“Without community-based services, people with I/DD lose access to person-centered supports that are essential to developing a greater level of independence so they can live, work, and thrive in their homes and communities. Family and friends cannot simply replace the skilled work of community providers and direct support professionals (DSPs). Whether it’s administering medications, supporting activities of daily living, supporting people to find and maintain employment, or any other form of specialized support, reducing access to HCBS simply shifts care to hospitals, public institutions, and other more restrictive settings—all of which are costlier than supporting people in their homes and communities.

“To ensure the promise of community living for people with I/DD remains a reality, we must strengthen the Medicaid program. ANCOR remains steadfast in working with our legislative champions on both sides of the aisle and the administration to support positive solutions that uphold dignity and autonomy for everyone.”

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