Federal health authorities have announced a recall of $11.4 billion in COVID-19-related funding that was previously allocated to state and local public health departments, as well as other health organizations nationwide. The U.S. Department of Health and Human Services (HHS) declared that, with the end of the COVID-19 pandemic, they will cease unnecessary expenditure of taxpayer monies on a pandemic they claim Americans have moved past.
The Centers for Disease Control and Prevention (CDC) is slated to begin recovering these funds starting 30 days from the notice terminations, which had been distributed starting Monday. These funds were initially designated for various COVID-19 related initiatives such as testing, vaccinations, and initiatives targeting high-risk communities, including minority populations. Some funds even supported global projects and community health worker involvement in pandemic response.
Lori Freeman, who heads the National Association of County & City Health Officials, remarked that much of this funding was already approaching its conclusion. She highlighted the unforeseen nature of the abrupt fund rescission, questioning the motive behind the decision.
Moreover, the National Institutes of Health have canceled over two dozen COVID-related research grants. This comes on the heels of a recent decision to end the distribution of free COVID-19 tests from covidtest.gov, which was a program established to deliver test kits directly to citizens without charge.
Although the official COVID federal public health emergency has ended, the virus still poses a mortal threat, with an average of 458 deaths per week reported over the past month, based on CDC data. Specific details about how the federal government intends to recover the withdrawn funds remain sparse. A spokesperson from HHS described these monies as “undisbursed funds remaining.”
Freeman believes state health departments still retain a significant portion of the COVID funds, which were initially authorized and appropriated by Congress and subsequently distributed to states. She noted that some of these resources have been repurposed for other health issues, such as disease detection systems, which initially began during the pandemic.
This realignment of funds has emerged from a series of legislative measures under both former President Trump and President Biden. The relief through the American Rescue Plan Act and other related bills accounted for billions in COVID response allocation.
The precise impacts of these funding cuts on health departments have yet to be fully ascertained, though some departments have started assessing potential ramifications. Health authorities in Washington state, for instance, have been informed of a sudden cessation of over $125 million in COVID-related funding, prompting them to evaluate the consequences of these federal actions.
In Los Angeles County, officials anticipate losing more than $45 million that currently supports significant public health services, including vaccinations, disease surveillance, laboratory services, outbreak investigations, infection control in healthcare settings, and data transparency efforts.
This news article was initially published on March 25, 2025, and has been updated since to reflect revised figures pertaining to the funds Los Angeles County stands to lose due to the federal cutbacks, lowering the previous estimate from more than $80 million to over $45 million.