Trump Admin Cuts $11 Billion In Health Funds — Local Governments Fight Back

Local governments across the U.S. are suing the Trump administration over what they allege is an unlawful termination of more than $11 billion in public health grants.

What Happened: In March, the Centers for Disease Control and Prevention said it is withdrawing $11.4 billion in funds allocated to state and community health departments, nongovernment organizations, and international recipients in response to the pandemic.

The lawsuit, filed in April, claims that the administration’s abrupt decision to eliminate these grants violates the Constitution and federal law.

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Following the COVID-19 pandemic, Congress allocated billions to rebuild the economy and strengthen the country’s public health systems.

Why It Matters: A portion of this funding, including money from the American Rescue Plan Act, was directed toward supporting local governments in combating infectious diseases. The funds also increase access to immunizations and improve emergency preparedness. Local governments—often the first line of defense in a health crisis—relied on these resources to enhance their capacity to respond to future outbreaks.

Despite this congressional intent, the lawsuit alleges that on March 24, the Department of Health and Human Services (HHS) and Centers for Disease Control and Prevention (CDC) abruptly rescinded these grants.

The Trump administration argues that continuing pandemic-related programs wastes taxpayer money.

The plaintiffs called the decision, labeled the “Mass Termination Decision,” unlawful and executed without proper cause.

They contend that the termination letters failed to identify any noncompliance by the local governments, which had fulfilled all grant requirements. Regulations typically require specific violations to justify such actions, and the lawsuit claims that no such determinations were made.

Additionally, the plaintiffs assert that Congress had not limited the duration or scope of the funding to the COVID-19 emergency. Even after officially ending the public health emergency, Congress reviewed the appropriations and chose not to rescind the funds now being withdrawn.

The lawsuit further claims that the funding cuts have already led to staff layoffs in local health departments and the disruption of essential services.

By filing the lawsuit, the plaintiffs seek to reverse the grants’ termination and compel the federal government to reinstate the programs.

They also ask the court to declare the termination decision unconstitutional, violating federal administrative law.

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