A coalition of 24 states and the District of Columbia has filed a federal lawsuit against the U.S. Department of Health and Human Services (HHS) and its Secretary, Robert F. Kennedy Jr., following the sudden termination of $11 billion in public health funding. The lawsuit, filed in the U.S. District Court for the District of Rhode Island, alleges that HHS’s decision to rescind these funds was unlawful, arbitrary, and capricious, violating the Administrative Procedure Act (APA).
The Funding Termination
On March 24, HHS abruptly terminated billions in grants and cooperative agreements originally funded through COVID-19-related legislation. The agency justified its actions by stating that the pandemic’s end rendered these funds unnecessary. However, state officials argue that the funding was not limited to pandemic response but was intended to support broader public health initiatives, including infectious disease surveillance, mental health services, and emergency preparedness.
The termination notices were issued without warning and took effect immediately. State officials claim this sudden action has caused widespread disruption to public health programs, resulting in layoffs of critical personnel and halting essential services.
States’ Legal Arguments
The plaintiff states—led by Colorado, Rhode Island, California, Minnesota, Illinois and Washington—assert that HHS exceeded its statutory authority by invoking a “for cause” termination provision without evidence of noncompliance by grant recipients. They also contend that Congress did not limit these appropriations to the duration of the COVID-19 emergency and had explicitly chosen not to rescind these funds when reviewing pandemic-related appropriations in 2023.
The lawsuit outlines three primary claims under the APA:
- Contrary to Law: The terminations violate statutory requirements governing federal grants.
- Arbitrary and Capricious Action: HHS failed to provide a reasoned explanation for its decision or consider the reliance interests of states.
- Procedural Violations: The agency did not provide adequate notice or an opportunity for a hearing before terminating the grants.
Impact on Public Health
The funding cuts have already led to significant disruptions:
- Washington: Loss of $118 million has jeopardized infectious disease monitoring and forced layoffs of 150 public health employees.
- California: More than $800 million in terminated grants threatens vaccine distribution programs and disease surveillance systems.
- Minnesota: The state faces a $220 million funding gap, resulting in layoffs of 200 public health workers and suspension of vaccination clinics.
- Rhode Island: $27 million in rescinded funds has halted vaccination campaigns and delayed laboratory upgrades.
- Colorado: Cuts totaling over $200 million have impacted laboratory capacity and vaccine distribution efforts.
State officials warn that these terminations will leave communities vulnerable to future public health crises by weakening infrastructure for disease prevention and response.
Relief Sought
The plaintiffs are seeking declaratory and injunctive relief to reverse the terminations and restore funding. They argue that without immediate intervention, states will face irreparable harm, including increased disease outbreaks and diminished mental health services.
“This decision to terminate already awarded federal funding will cause immeasurable harm and disruption to the health and safety of the people of Illinois and generate larger expenses in the longer run,” said Governor JB Pritzker. “The State of Illinois will do everything in our power to restore this vital federal funding and continue to invest in common sense public health solutions to keep our state safe and healthy.”
