Stock Markets February 17, 2026

Top HHS Leadership Exits as Department Restructures Management Team

Deputy secretary and agency general counsel to depart HHS amid announced leadership realignment

By Caleb Monroe
Top HHS Leadership Exits as Department Restructures Management Team

Two senior officials at the U.S. Department of Health and Human Services are set to leave their current posts as part of a broader managerial reshuffle, with both expected to be offered new positions within the administration. The departures come as the HHS secretary names new senior counselors to oversee agency operations and key sub-agencies.

Key Points

  • Jim O'Neill, HHS Deputy Secretary and Acting CDC Director, will leave his current role as part of a larger leadership shakeup.
  • HHS General Counsel Mike Stuart is also set to depart; both are expected to be offered positions elsewhere within the administration.
  • Secretary Kennedy announced a management realignment: Chris Klomp named chief counselor to oversee department operations; Kyle Diamantas and Grace Graham will be senior counselors for the FDA; John Brooks will be senior counselor for CMS.

U.S. Department of Health and Human Services (HHS) Deputy Secretary Jim O'Neill is set to step down from his current position as part of a wider reorganization of the department's leadership, according to a report citing two HHS officials and an individual familiar with the personnel decision. O'Neill, who serves as the principal aide to HHS Secretary Robert F. Kennedy Jr., also holds the role of Acting Director of the Centers for Disease Control and Prevention (CDC).

In addition to O'Neill's planned exit, the department's top lawyer, General Counsel Mike Stuart, is also expected to leave his post. Both officials are anticipated to be offered new roles within the Trump administration, the report indicated. It remains unclear whether those new appointments would be inside HHS or at other federal agencies.

An HHS spokesperson, speaking on Sunday, pointed to a post on the social platform X by department colleague Andrew Nixon. That post noted Stuart will continue to serve as HHS General Counsel on an interim basis while his appointment to a role within the administration is pending.

The personnel movements follow a set of management changes announced by Secretary Kennedy on Thursday. Under the reorganization, Chris Klomp will assume the title of chief counselor and be charged with overseeing the department's operations. Kyle Diamantas and Grace Graham will take on roles as senior counselors for the Food and Drug Administration, while John Brooks will serve as senior counselor for the Centers for Medicare & Medicaid Services.

The report did not provide additional details about the timing of the departures or the specific positions being offered to O'Neill and Stuart. Statements referenced in the report attribute information to internal HHS sources and an individual described as familiar with the decision-making process.


Summary

Senior HHS officials Jim O'Neill and Mike Stuart are leaving their current posts amid a departmental leadership reshuffle that names new counselors to oversee HHS operations and its major agencies. Both departing officials are expected to be offered roles elsewhere in the administration; details about those roles or their locations have not been specified.

Context and next steps

The department has announced internal leadership changes that reassign oversight responsibilities. Interim arrangements for Stuart have been publicly noted while his next appointment is processed.

Risks

  • Uncertainty about the new appointments for O'Neill and Stuart - it is not yet clear whether their forthcoming roles will be within HHS or at other agencies; this adds short-term leadership uncertainty within federal health agencies.
  • Interim arrangements for senior legal counsel while appointments are pending - Stuart will continue serving as HHS General Counsel pending his appointment, which could affect continuity of legal oversight during the transition.

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