The U.S. Department of Health and Human Services (HHS) announced on March 27, 2025, that it would cut about 10,000 full-time jobs and fold programs of the Administration for Community Living (ACL) into other agencies, according to an HHS press release.
What HHS announced
HHS said the layoffs, combined with early retirements and buyouts, would shrink its workforce from 82,000 to 62,000 full-time employees. The department planned to consolidate 28 divisions into 15 and cut regional offices from 10 to five.
ACL programs that support older adults and people with disabilities would move into the Administration for Children and Families, the Office of the Assistant Secretary for Planning and Evaluation and the Centers for Medicare & Medicaid Services. HHS said the reorganization would not affect Medicare and Medicaid services.
ACL was created in 2012 to bring aging and disability programs together, Disability Scoop reported. Advocates told the outlet they were shocked by the plan.
Why this mattered for providers and DSPs
ACL funds programs such as state developmental disabilities councils and protection and advocacy systems. For provider agencies and DSPs, the change did not cut Medicaid payments, but it removed the federal office whose main job was people with disabilities living in the community.