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June 1, 2021

President Biden releases FY22 budget, increasing health spending by $25 billion

On May 28, President Joe Biden released his first budget, requesting $133.7 billion for the Department of Health and Human Services (HHS), a 23.4% increase from the 2021 enacted level. About a quarter of the $25 billion increase, or $6.5 billion, is dedicated to creating the Advanced Research Projects Agency (ARPA-H), a new effort "tasked with developing a new generation of medical breakthroughs — marshalling our Nation's incredible scientific capacity to help prevent, detect, and treat diseases like cancer, diabetes, and Alzheimer's." The National Institutes of Health (NIH) would get an additional $9 billion, to a level of $51 billion, which includes the new investment in ARPA-H along with $8.7 billion for the Centers for Disease Control and Prevention (CDC) "to restore capacity to the world's preeminent public health agency" and $6.5 billion for the Food and Drug Administration (FDA), including for monitoring of global supply chains and artificial intelligence investments. Other health care priority areas include investments to help end the opioid ($10.7b) and HIV/AIDS ($670m) epidemics; address racial disparities through the CDC's Social Determinants of Health program ($153m); reduce maternal mortality and race-based disparities ($200m); and provide funding for firearm violence prevention research at the CDC and NIH ($200m), among others.

Additional information is available in the attached Tax Alert.


Contact Information
For additional information concerning this Alert, please contact:
Washington Council Ernst & Young
   • Heather Meade (
   • Laura Dillon (


Biden FY22 budget