US Pulls Back $12 Billion in Funding to State Health Departments

The U.S. Department of Health and Human Services canceled around $12 billion in federal grants to states that were allocated during the COVID-19 pandemic, the federal department and state officials said on Wednesday.

The grants were being used to track, prevent and control infectious diseases, including measles and bird flu, as well as track mental health services and fund addiction treatment, said lawmakers and state governors, who sharply criticized the move.

Public health officials in Lubbock, Texas, received orders to stop work supported by three grants that helped fund the response to the widening measles outbreak there, said a spokesperson for city public health director Katherine Wells.

The funds were largely used for COVID-19 testing, vaccination, and other responses to the pandemic, HHS said. Termination notices began on Monday, it said in a statement.

"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," it said.

President Donald Trump's administration ended more than $11 billion in funding awarded by the Centers for Disease Control and Prevention and roughly $1 billion by the Substance Abuse and Mental Health Services Administration, U.S. Senator Patty Murray said in a statement.