States in America sue HHS over layoffs and restructuring

Nineteen states and the District of Columbia filed a lawsuit against the federal government on 5 May aiming to block the Trump administration’s large-scale restructuring of the Department of Health and Human Service (HHS).

In the lawsuit, New York Attorney General (AG) Letitia James and 19 other AGs argue the restructuring is an “unconstitutional and illegal dismantling of the department.” They contend the government has violated hundreds of laws and bypassed congressional authority by enacting the plan, which has erased decades of public health progress and left HHS unable to execute many vital functions.

The state AGs said the restructuring has significantly hindered mental health and substance use services, HIV/AIDS response efforts, maternal mortality monitoring and disability support, among other key services. 

HHS announced the restructuring 27 March, outlining plans to lay off 10,000 full-time employees and consolidate the agency from 28 divisions to 15. The agency defended the restructuring — and its legality.

“We are following the law, period,” an HHS spokesperson said. “Nothing has been rushed and multiple rounds of discussions between divisions and HHS occurred before the announcement. Every step taken has been deliberate, collaborative and consistent with federal personnel policy and civil service protections. To suggest otherwise is inaccurate and misrepresents the integrity and facts of the process.”

“The reforms are designed to strengthen the agency’s capacity to serve the American public, not weaken it. HHS remains confident that the process will withstand legal scrutiny and looks forward to a resolution that reflects the facts and the law.”

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Source: Becker's Hospital Review, 5 May 2025