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Trump Administration Halts $12 Billion in State Health Grants, Raising Concerns Among Officials

03/29/2025
in News

The Department of Health and Human Services (HHS) has abruptly terminated over $12 billion in federal grants intended for state health programs focused on infectious disease tracking, mental health services, addiction treatment, and other critical health initiatives.

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The decision, which was communicated to state health departments on Monday evening, effectively halts funding that was originally allocated during the COVID-19 pandemic but later expanded to support broader public health efforts.

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Impact on State Health Systems

State health officials warn that the funding cuts will severely impact already underfunded health departments struggling to manage chronic diseases, rising infectious outbreaks like syphilis, and emerging threats such as bird flu.

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For some states, the effects were immediate. In Lubbock, Texas, public health officials were ordered to halt programs funded by three grants, including initiatives addressing a growing measles outbreak, according to Katherine Wells, the city’s director of public health.

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Elsewhere, departments began preparing for mass layoffs. In Texas, Maine, and Rhode Island, officials were scrambling to assess the full scope of the cuts, with some predicting the loss of up to 90% of staff from certain infectious disease teams.

Dr. Umair Shah, former health secretary of Washington State, cautioned that these reductions could have long-term consequences. “When we take funding away from public health systems, the systems simply don’t have the capacity to respond, as they’ve been chronically underfunded for decades,” he said.

Breakdown of the Cuts

The terminated grants include approximately $11.4 billion from the Centers for Disease Control and Prevention (CDC) and around $1 billion from the Substance Abuse and Mental Health Services Administration (SAMHSA).

Initially authorized by Congress as part of COVID-19 relief efforts, the funds were originally directed toward coronavirus testing, vaccination efforts, and addressing health disparities in high-risk communities. However, in recent years, they were repurposed to support broader public health initiatives, including surveillance of other respiratory viruses, childhood vaccinations, and emergency preparedness.

Federal Justification for the Cuts

On Tuesday, Andrew Nixon, an HHS spokesperson, defended the decision, stating, “The COVID-19 pandemic is over, and HHS will no longer waste billions of taxpayer dollars responding to a nonexistent pandemic that Americans moved on from years ago.”

The move has sparked concern among public health experts, who argue that withdrawing funding from vital state health programs could leave communities vulnerable to future health crises.

The termination of these grants raises questions about the future of state public health initiatives and how health departments will adapt to the sudden loss of federal support.

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