HHS funding cuts spark legal battles

In addition to staffing cuts, the Department of Health and Human Services (HHS) has also been cutting grant funding in recent weeks. Several groups are now suing the administration over those cuts, though the Department of Government Efficiency (DOGE) is continuing to direct additional cuts.

COVID grants:

• The update: 24 state attorneys general sued the federal government to restore the $12 billion in COVID relief funding through the Centers for Disease Control and Prevention (CDC) and the Substance Abuse and Mental Health Services Administration (SAMHSA) that HHS clawed back from the states earlier this month.
• The details: They argued the termination of the funding will lead to a breakdown of the country’s health system, including reversing progress on the opioid crisis and throwing the mental health system into chaos. The coalition is seeking to restore the funding, which they claim the federal government had no basis to rescind because it was allocated to states by Congress, which has the constitutional power of the purse.
• But: In response to the lawsuit, a judge granted a temporary restraining order, temporarily barring HHS from terminating the funds.
• What’s coming: The judge ordered HHS and the states to return to discuss next steps on April 16.
• Why it’s important: Much of this funding was supporting state and local mental health and addiction services (see more in last week’s summary).

National Institutes of Health (NIH) grants:

• The update: The American Civil Liberties Union (ACLU) filed a lawsuit against NIH on behalf of four researchers and three unions with members who rely on NIH funding, alleging the agency has conducted an “ongoing ideological purge of critical research projects” that violates federal law and is unconstitutional.
• The details: The lawsuit says NIH “abruptly cancelled” hundreds of research projects “without scientifically-valid explanation or cause.” It says that NIH has not developed any guidelines, definitions, or explanations that explain the parameters of its prohibitions against research focused on diversity, equity, and inclusion, gender, or other topics.
• Why it’s important: While the focus of the cuts seems to be on grants related to LGBTQ+ populations and HIV, many of the studies also included a focus on substance use in connection with these issues (see more in last week’s summary).

Contract cuts:

• The update: In addition to the staffing cuts, the administration is requiring HHS to cut spending on contracts by 35%.
• Go deeper: The contract spending cuts apply across all divisions of HHS. Spending on contracts can include things ranging from cleaning services or computer support to specialized equipment for medical research. The contracts often cover functions that are specialized or not large enough to require full-time staff.