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Health Crisis Brewing As 23 States Battle Over Billions In Cuts

Jason Phillippe by Jason Phillippe
April 4, 2025
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Health Crisis Brewing As 23 States Battle Over Billions In Cuts

Photo by Katie Moum on Unsplash

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They are suing the HHS.

A coalition of 23 states and Washington, D.C., has filed a lawsuit against the U.S. Department of Health and Human Services (HHS), challenging a sudden withdrawal of $12 billion in public health funding. The lawsuit, filed on Tuesday, seeks an immediate halt to the cuts, arguing they threaten essential health services.

According to the suit, the Centers for Disease Control and Prevention (CDC) recently retracted about $11.4 billion in funding originally allocated to states and local health agencies during the COVID-19 pandemic. An additional $1 billion was pulled from the Substance Abuse and Mental Health Services Administration. CNN reported that HHS declined to comment due to the ongoing legal proceedings.

In a statement last week, the agency defended its decision, asserting that with the pandemic over, it no longer made sense to spend taxpayer dollars on COVID-related efforts. Instead, it claimed to be shifting focus toward addressing chronic illnesses and supporting broader health initiatives.

However, state officials argue that the funding wasn’t just for pandemic response—it was intended to support long-term improvements in public health infrastructure. New York Attorney General Letitia James emphasized that the funding is still critically needed. “Eliminating these resources now undermines efforts to combat the opioid epidemic, destabilizes mental health services, and puts pressure on hospitals already stretched thin,” she said. New York alone stands to lose over $400 million.

Dr. Joseph Kanter, head of the Association of State and Territorial Health Officials, noted that states had already developed strategic plans for the funds, with approval from federal agencies. These investments were strengthening lab capabilities, improving disease surveillance systems, and enhancing preparedness for infectious diseases and bioterrorism threats.

“These resources were not only legally allocated by Congress but were already in active use to modernize public health responses,” Kanter stated. “Taking them away without warning will significantly hinder states’ abilities to manage both current and emerging health threats.”

The lawsuit accuses the Trump administration of overstepping its authority by canceling funding that had already been authorized by Congress. Legal experts suggest the issue could escalate into a significant constitutional dispute.

Daniel Karon, a legal analyst based in Cleveland, explained the broader implications: “When Congress directs how funds should be spent and the executive branch refuses to follow through, it disrupts the balance of power. If the courts side with Congress but the executive still resists, it creates a serious separation-of-powers conflict—a true constitutional crisis.”

The outcome of the case could have far-reaching consequences for how public health funding is handled in the future and for the balance of authority among the branches of government.

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