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US Cancels $16 Billion in Health Funding to States

27/03/2025
in News
US Cancels $16 Billion in Health Funding to States
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The U.S. Department of Health and Human Services (HHS) announced on March 26 that it has cancelled approximately $12 billion (S$16 billion) in federal grants allocated to state health departments during the COVID-19 pandemic. The funding, which had been used for tracking and controlling infectious diseases, as well as supporting mental health services and addiction treatment, was withdrawn amid widespread criticism from state officials and lawmakers.

The grants had played a crucial role in addressing various public health concerns, including the tracking of measles, bird flu, and the provision of addiction treatment services. State officials from across the country expressed strong disapproval of the decision, arguing that it would undermine efforts to protect public health.

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In Lubbock, Texas, public health officials were ordered to halt work funded by three key grants that were essential in responding to a growing measles outbreak in the area. Katherine Wells, the city’s public health director, confirmed the stoppage of these critical services.

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According to HHS, the funding had primarily supported COVID-19 testing, vaccination efforts, and other pandemic-related responses. Termination notices for these funds began on March 24, the department stated.

“The COVID-19 pandemic is over, and HHS will no longer waste billions of taxpayer dollars responding to a non-existent pandemic that Americans moved on from years ago,” the department said in a statement.

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The cuts included more than $11 billion in funding from the Centers for Disease Control and Prevention (CDC) and approximately $1 billion from the Substance Abuse and Mental Health Services Administration (SAMHSA), according to U.S. Senator Patty Murray. Murray, who represents Washington state, criticized the move, which she argued would have a detrimental impact on public health efforts across the country.

Washington state alone lost more than $160 million in funding, which was allocated to the state health department, Native American tribes, and other organizations. Murray warned that the cuts could jeopardize more than 200 jobs, urging the administration to reconsider its decision.

“This senselessly ripping away this funding Congress provided will undermine our state’s ability to protect families from infectious diseases like measles and bird flu and to help people get the mental health care and substance use treatment they need,” Murray said.

In New York, Governor Kathy Hochul announced that the Trump administration intended to cut over $300 million in funding to the state’s Department of Health, Office of Addiction Supports and Services, and Office of Mental Health. Hochul vowed to fight against the cuts, stating she would “fight tooth and nail” to protect the state’s healthcare programs.

The state of Illinois also saw a reduction of $125 million in federal funding, which had been earmarked for preventing and controlling emerging infectious diseases. Governor JB Pritzker’s office confirmed that the cuts would affect both the Illinois Department of Public Health and 97 local public health departments.

In Massachusetts, Governor Maura Healey highlighted the impact of the funding loss on critical health services, including mental health tracking and addiction treatment programs.

Since taking office, the Trump administration has prioritized cutting government spending and dismantling various public health programs, arguing that these actions are necessary to prevent wasteful expenditures. This approach has led to the reduction or elimination of several programs and agencies, resulting in the loss of thousands of federal jobs.

The HHS is currently headed by Robert F. Kennedy Jr., a vaccine critic who has vowed to focus on tackling chronic diseases. Kennedy’s nomination and subsequent confirmation have raised concerns among medical experts, given his controversial views on vaccines and public health.

The decision to cancel these funds has sparked a broader debate about the future of public health funding and the role of the federal government in supporting state-level health initiatives.

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