Budget cuts deepen U.S. nursing shortage, threaten Medicaid access: ANA
MARYLAND, UNITED STATES — The United States healthcare system faces a deepening nursing shortage as the proposed fiscal year 2026 federal budget seeks sweeping cuts to nursing education, research, and Medicaid funding, according to the American Nurses Association (ANA).
With over 5 million nurses already strained by burnout and workplace violence, experts warn these cuts could devastate the healthcare system.
Federal budget cuts threaten nursing education pipeline
According to Tim Nanof, Executive Vice President of Policy and Government Affairs at the ANA, failure to provide funding will leave hospitals and clinics, particularly those serving rural areas, in a worse position with their existing staffing problem.
“As proposed, the President’s budget would eliminate Title VIII funding that is the foundation for nurse educational pipeline support,” Nanof told Medical Buyer.
“Those $302 million federal dollars are absolutely critical to ensuring every community across the country has the nursing personnel they need to drive our healthcare system,” he stressed, highlighting that every community is based on these funds to educate nurses. Cutting them off now will escalate the cost of labor and downsize the capacity of hospitals.
Moreover, the budget eliminates the only National Institute for Nursing Research (NINR), an NIH institute devoted to nursing science. Although its operations can be relocated to other divisions of the NIH, analysts are worried that it will render medical progress slow.
Medicaid cuts risk rural hospital closures, patient access
“Rural hospitals will close, nurses will lose their jobs, and patients will not be able to access the care they need. Some rural patients already drive hours for critical care—these proposals will make outcomes worse for American consumers,” Nanof states.
The Congressional Budget Office estimates 8.6 million American citizens could lose Medicaid coverage as a result of proposed cuts. With nursing shortages, this could worsen the healthcare crisis, leaving those in need without help.
Nurse retention at risk amid burnout, lack of support
Nurses are still recovering from pandemic trauma and rising workplace challenges, and this situation could also threaten their mental health and retention.
The Lorna Breen Act, which supports nurse well-being, and Title VIII funding are now at risk. The ANA is pushing for legislation like the PRECEPT Nurses Act (H.R. 392/S. 131) to expand clinical training opportunities. However, without federal backing, nurse recruitment will falter.
Without sustained investment in nursing education, research, and Medicaid, the U.S. risks stifling critical innovation in patient care.
As Congress deliberates on the budget for the fiscal year 2026, it is clear that nurses are the backbone of the healthcare system, and their support cannot wait.
“Our healthcare system cannot function without nurses. It’s time the federal budget reflected that reality,” Nanof said.
