Rehabilitative Therapy Practices NAICS 621340

Jun 3, 2025 - Budget Cuts Proposed for National Institutes of Health

• The Trump Administration’s proposed fiscal 2026 budget reduces funding for the National Institutes of Health (NIH) by $18 billion to $27.5 billion. The budget proposal may result in lower funding for patient care across the health care continuum. Under the proposed 2026 budget, $6 billion would be allocated in total discretionary and reimbursable funds for the Centers for Medicare and Medicaid Services Program Management, which includes $3.5 billion in discretionary budget authority and another $2.5 billion for reimbursable administration. A total of $722 million would be allocated for continued “core Medicare operations, and it also modernizes inefficient, decades-old processes.” The Children's Health Insurance Program and Medicaid administrative operations would receive $130 million and the National Medicare Education Program would also receive $284 million in the proposed budget. The NIH received $46.4 billion in program level funding in 2024 and just over $46 billion in 2025, according to the budget proposal.
• The physical therapist workforce shortage is likely to continue through 2037, according to The American Physical Therapy Association (APTA). These shortages could significantly affect patient access to timely care without strategic interventions. "The growing demand for physical therapist services, coupled with an aging workforce, underscore the necessity for targeted interventions to expand our workforce," the APTA notes.

• The US Congress is considering plans to cut Medicaid to help pay for tax cuts, according to health policy organization KFF. A House of Representatives budget resolution targets $880 billion or more in potential reductions to federal Medicaid spending. Medicaid is the primary program providing comprehensive health and long-term care to one in five US residents and accounts for nearly $1 out of every $5 spent on health care. Government efforts to contain health care costs have resulted in constant pressure to change Medicare programs and lower reimbursements for therapy providers. Past legislation reduced reimbursements for multiple procedures billed in a single day.
• Rehabilitative therapy industry employment and average wages for nonsupervisory employees increased slightly during the first three months of 2025, according to the US Bureau of Labor Statistics. Rehabilitative therapy practice sales are forecast to grow at a 6.08% compounded annual rate from 2025 to 2029, faster than the growth of the overall economy, according to Inforum and the Interindustry Economic Research Fund, Inc.