Michigan Sues Over $380M Health Fund Cuts Amid Pandemic Aftermath

Michigan joins 22 states in suing over $11B in public health cuts. Lawsuit seeks to restore COVID-era funding.
Michigan sues Trump administration over $380 million in public health cuts

Michigan Joins Legal Battle Over Health Funding Cuts

In a surprising move that has caught many off guard, Michigan is among 23 jurisdictions challenging a major financial decision by the Trump administration. These states, together with the District of Columbia, have filed a lawsuit against the reduction of roughly $11 billion in public health financing, affecting approximately $380 million allocated to Michigan alone.

This funding was initially designated during the height of the COVID-19 pandemic, with a planned phase-out later in the year. However, the U.S. Department of Health and Human Services (HHS) rescinded it abruptly on March 24, according to state health authorities.

The cuts impact numerous grants overseen by the Michigan Department of Health and Human Services (MDHHS). These included resources for mental health support for children with severe conditions, substance abuse services in rural areas, infectious disease laboratory enhancements, and vaccine clinic support, as outlined by Michigan’s attorney general.

“Congress authorized and appropriated new and increased funding for many grants in COVID-19-related legislation to support critical public health needs,” stated Michigan Attorney General Dana Nessel’s office. The statement criticized the cuts as arbitrary and lacking legal justification.

The lawsuit aims to overturn the grant terminations temporarily. As of now, HHS has not provided further details regarding the decision’s impact on Michigan. However, a spokesperson from the Substance Abuse and Mental Health Services Administration (SAMHSA) noted that the agency anticipates saving over $1 billion from funds initially allocated through the Coronavirus Preparedness and Response Supplemental Appropriations Act of 2020 and the American Rescue Plan Act of 2021.

“The COVID-19 pandemic is over, and HHS will no longer waste billions of taxpayer dollars responding to a non-existent pandemic that Americans moved on from years ago,” commented the SAMHSA spokesperson. “HHS is prioritizing funding projects that will deliver on President Trump’s mandate to Make America Healthy Again.”

The Impact on Local Public Health

Over the past year, state and local health departments have utilized COVID-era funding for disease prevention, emergency readiness, mental health, and substance abuse services. The termination of these funds will disrupt several critical services, the Michigan Attorney General’s office noted.

  • Enhancement of substance use disorder services, particularly for underserved and marginalized communities, including pregnant women, young children, opioid users, and rural residents.
  • CDC-backed infectious disease control efforts, which supported statewide lab improvements. Without these funds, the ability of MDHHS and local health departments to manage healthcare-associated infections is severely hindered.
  • CDC grants aimed at child immunization and vaccination, utilized for vaccine procurement, storage, clinic operations, and translation services for non-English speaking populations. A remaining $49 million balance was intended for routine immunizations and protection against seasonal respiratory viruses.

A representative from MDHHS mentioned that they are advising subgrantees to pause spending any unallocated funds while assessing potential funding reductions and future actions. The funding cut impacts all of Michigan’s 45 local health departments and 46 community mental health services programs.

“The HHS cuts threaten the urgent public health needs of states around the country at a time when emerging disease threats—such as measles and bird flu—are on the rise,” stated the AG’s office.

Norm Hess, executive director of the Michigan Association for Local Public Health (MALPH), described the sudden halt as unexpected and problematic for health departments, which often lack alternative funding sources.

“Local health departments often have no other funding source to backfill something like that,” Hess explained. “If you’re in the middle of expanding a lab or purchasing equipment, and now all of a sudden, that money has turned off, that’s not saving money. It’s wasting money that’s already been spent because you don’t end up with the final product.”

Washtenaw County’s public health department, for instance, relies on these grants for approximately 6% of its budget. Public information officer Susan Ringler-Cerniglia highlighted the ongoing need for pandemic-related funding due to chronic underfunding in public health.

“People have this reaction, which is logical: ‘Oh, the pandemic’s over. Why the heck are we still providing pandemic funding?’” she said. “But what that fails to recognize is kind of the broken system we have for funding public health, and that is that it’s underfunded. So that often doing core services and functions for us is really this constant turnover of funding from emergencies.”

In Washtenaw County, such funds were directed towards emergency preparedness, community outreach, outbreak monitoring, and vaccination awareness campaigns. Ringler-Cerniglia emphasized that the sudden withdrawal of these resources poses significant challenges to ongoing public health efforts.


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