On Tuesday, the Department of Health and Human Services (HHS) announced the retraction of $11.4 billion in COVID-19-related funds allocated to state and local public health departments and other health organizations nationwide.
HHS stated that the pandemic has concluded, rendering further expenditure unnecessary. The Centers for Disease Control and Prevention (CDC) plans to commence fund recovery 30 days after issuing termination notices, which began on March 24, 2025.
The rescinded funds were primarily designated for COVID-19 testing, vaccination efforts, global health projects, community health workers, and programs addressing health disparities among high-risk and underserved populations, including minority groups.
Lori Freeman, CEO of the National Association of County & City Health Officials, criticized the timing of the retraction, noting that much of the funding was set to conclude within the next six months. She described the decision as “cruel and unusual behavior.”
Despite the official end of the federal public health emergency, COVID-19 continues to impact the nation, with an average of 458 deaths per week over the past month.
The specific process for fund recovery remains unclear. HHS spokesperson Andrew Nixon indicated that the $11.4 billion comprises undisbursed funds but did not elaborate on the recovery mechanism.
State health departments are reviewing the impact of the Department of Health and Human Services’ decision to retract $11.4 billion in COVID-19-related funds. In Washington state, officials reported the termination of over $125 million in federal funding and are determining next steps. Los Angeles County anticipates losing over $80 million, affecting various public health programs. While some officials argue this could disrupt services, others see it as a necessary rollback of excessive pandemic-era spending.
