Twenty-three states and the District of Columbia have filed a lawsuit against HHS over the Trump administration’s abrupt cancellation of billions in public health grants to state health departments.
The suit, filed April 1 in the U.S. District Court for the District of Rhode Island, alleges HHS’ discontinuation of more than $11 billion in funding to state health departments violates federal law and jeopardizes public health. The eliminated funds supported efforts to track infectious diseases, improve pandemic preparedness, expand mental health services and modernize outdated systems. If funding is not restored, states allege key public health programs will be disbanded and thousands of employees could lose their jobs.
State health departments began receiving notices late March 25 that $11.4 billion in grants from the CDC and roughly $1 billion in funds from the Substance Abuse and Mental Health Services Administration were being rescinded immediately.
“Slashing this funding now will reverse our progress on the opioid crisis, throw our mental health systems into chaos, and leave hospitals struggling to care for patients,” New York Attorney General Letitia James said in a news release, adding that the state is set to lose nearly $400 million as part of the cuts.
HHS had said the funds were eliminated because “the COVID-19 pandemic is over” and that the agency plans to prioritize projects that focus on addressing chronic diseases. While Congress initially authorized the grants to support COVID-19 response efforts, the government gave health departments the ability to allocate the funds to support other public health concerns in 2024.
The plaintiffs are seeking a temporary restraining order to immediately prevent the funds from being rescinded, as well longer-term injunctions.
Three more federal updates:
HHS layoffs begin: On April 1, employees at the agency began receiving dismissal notices. On March 27, HHS shared plans to lay off 10,000 full-time employees in what it described as a “dramatic restructuring” expected to save taxpayers $1.8 billion annually. The FDA, CDC and National Institutes of Health are among the departments set to see the largest job cuts. Affected divisions include those that oversee infectious disease response, drug approvals and health insurance programs.
New tariffs set: President Donald Trump will announce new tariffs April 2, the White House confirmed to Reuters. Details on the scope of the levies are unclear, though President Trump suggested the tariffs would be in direct proportion to those levied by other nations on U.S. exports, according to The Washington Post. On March 12, the U.S. implemented 25% tariffs on steel and aluminum imports — key materials used in numerous medical devices and supplies.
Harvard funding at risk: Federal agencies are reviewing nearly $9 billion in grants and contracts awarded to Cambridge, Mass.-based Harvard University, which is affiliated with 15 clinical and research institutes. The move is in response to what the Trump administration described as Harvard’s inadequate response to anti-Semitic harassment on its campus. It follows a similar federal review of Columbia University in New York City, which led the administration to cut $400 million in funding, more than half of which is tied to NIH grants. Columbia is in negotiations with the federal government to restore the funding.
