HHS Pauses, Then Restores, $5 Billion in State Health Grants

(Bloomberg) — The U.S. Department of Health and Human Services notified states on Saturday that it would pause nearly $5 billion worth of public health benefits, then announced hours later that it would lift the pause.
The grants were suspended to evaluate whether activities were “consistent with administration and agency priorities,” according to an email viewed by Bloomberg News.
The temporary pause is for HHS to implement a new review process and “to ensure funds are used for their intended purposes,” agency spokesman Andrew Nixon said. He said states will be notified that the pause has been lifted.
This sudden change is similar to a reversal earlier this month when the Trump administration announced it was ending $2 billion in grants to behavioral health organizations because their federal awards were not aligned with the Substance Abuse and Mental Health Services Administration’s priorities. Under pressure from medical groups and lawmakers, the administration reversed its decision days later.
The bulk of federal grants to state and local public health agencies are awarded over a five-year period through the Centers for Disease Control and Prevention to assist departments with workforce and data modernization. Funding is also used to support diversity and health equity programs, according to the public health infrastructure grant website.
News of state and local health funding pauses was met with disappointment. “This is another senseless disruption as we try to provide public health services,” said Dallas County Health and Human Services Director Phil Huang. He said Dallas is facing the loss of $2.1 million in grants that support disease research, surveillance systems and vaccine management programs.
Public Health Infrastructure Grants were first awarded to states in fall 2022.
Other recipients include the Association of State and Territorial Health offices, the National Network of Public Health Institutes and the Public Health Accreditation Board. The work of these partners supports 107 health departments to provide technical assistance.
The CDC has faced widespread staff layoffs and funding cuts since Health and Human Services Secretary Robert F. Kennedy Jr. took office in the top job.
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