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States sue HHS over $12B in cancelled health funds

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 jeopardises 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efforts to track infectious diseases, improve pandemic preparedness, expand mental health services and modernize outdated systems.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the CDC and roughly $1 billion in funds from the Substance Abuse and Mental Health Services Administration were being rescinded immediately.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. 

The plaintiffs are seeking a temporary restraining order to immediately prevent the funds from being rescinded, as well longer-term injunctions. 

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Source: Becker's Hospital Review, 1 April 2025

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