States Sue Trump Administration Over Crucial Healthcare Funding Cuts

Person holding a document labeled Lawsuit.

Twenty-three states have banded together to challenge the Trump administration’s $11 billion funding cuts for COVID-19 and public health initiatives in a federal lawsuit.

Key Takeaways

  • The lawsuit addresses a reduction of $11 billion in federal funds meant for COVID-19 and public health projects.
  • Filed in Rhode Island, it involves states like New York, Colorado, and Kentucky.
  • The complaint claims the funding cuts are illegal and could harm public health efforts.
  • Congress originally allocated these funds for pandemic-related health initiatives.
  • More than two dozen COVID-related research grants have been revoked.

States File Legal Challenge

A coalition of 23 states has initiated a lawsuit in federal court in Rhode Island against the Trump administration. The states argue that the $11 billion reduction in federal funds previously designated for COVID-19 responses is both illegal and detrimental to public health services across the country.

The attorneys general leading this lawsuit hail from diverse states including New York, Colorado, Kentucky, and Pennsylvania. They claim that the funding cuts by the Trump administration endanger critical health services, potentially escalating the ongoing pandemic crisis. These funds were initially allocated by Congress for COVID-19 efforts and other significant public health needs.

The Impact of Reduced Funds

Local and state health departments are undergoing evaluations to understand the impact of this financial decision, with numerous jobs at stake. “We are working now to figure out how much of this critical public health work we can save and continue,” said Brooke Cunningham in response to the cuts.

States like Minnesota are already feeling the repercussions, with the Department of Health having issued layoff warnings to 170 employees. Moreover, the U.S. Health and Human Services Department has initiated dismissal notices that could lead to as many as 10,000 layoffs. These measures threaten to undermine ongoing initiatives to tackle health crises like the opioid epidemic and mental health issues.

Broader Implications of Funding Rescission

California may lose nearly $1 billion, which is vital for maintaining substance use disorder prevention and vaccination programs. Meanwhile, North Carolina estimates a loss of $230 million, threatening local health departments with potential job cuts and reduced effectiveness in combating diseases like the flu and measles.

“Slashing this funding now will reverse our progress on the opioid crisis, throw our mental health systems into chaos, and leave hospitals struggling to care for patients,” said New York Attorney General Letitia James in defense of the lawsuit.

Furthermore, the reduction in funds has led to the cancellation of more than two dozen COVID-related research grants. Persistent COVID-19 weekly fatalities underscore the ongoing need for robust health initiatives, despite the official end of the federal Public Health Emergency.

Sources:

  1. https://www.startribune.com/states-sue-trump-administration-for-rescinding-billions-in-health-funding/601313848
  2. https://www.reuters.com/legal/democratic-led-states-sue-us-health-secretary-2025-04-01/
  3. https://apnews.com/article/trump-covid-federal-money-lawsuit-e2fcacccfda994500ce92be94d1ada7d
  4. https://www.newsmax.com/us/Trump-COVID-federal-money-lawsuit/2025/04/01/id/1205254