Pentagon Proposes Changes to Military Healthcare Budget in FY2027
The FY2027 President’s Budget Request (PBR) includes a significant restructuring of military healthcare funding. At first glance, it may look like a budget cut, but the details reveal a more complex picture. For decades, TRICARE civilian care contracts have been funded from the Defense Health Program, which totals about $41 billion. The FY2027 proposal would split this program into two separate accounts, marking a major change in how military healthcare is funded and managed. Under the proposal, the first account would be the Combat and Operational Medicine Program , with roughly $23.4 billion allocated for direct care at military treatment facilities and combat medicine. The second account would be the Private Sector Care Program , with about $22.2 billion dedicated to TRICARE civilian contracts. This split is the clearest separation to date between care delivered in military facilities and care provided through civilian contractors. The change comes at a time when military h...