Public Health and Medical Services
Last Updated: April 7, 2025
Pandemic-era grants for public health infrastructure rolled back.
Community health worker programs defunded.
Maternal and child health competitive grants reduced or consolidated.
HIV prevention and care coordination programs cut.
Grants being cut or changed
Major shifts are happening in how the federal government supports public health programs. The Centers for Disease Control and Prevention (CDC) and the Health Resources and Services Administration (HRSA) are both facing significant cuts. Pandemic-era grants, especially those that expanded public health infrastructure, community health worker programs, and emergency preparedness, are being rolled back. Funding for local health departments to improve disease surveillance, vaccine outreach, and health equity initiatives has been reduced or is no longer being renewed.
Eliminations or restructuring
HRSA's rural health and telehealth programs are being consolidated under a narrower funding structure. Several competitive grant programs supporting maternal and child health, HIV prevention, and community-based care coordination are being reduced or folded into larger, less-targeted block grants. This change reduces the flexibility nonprofits had to design responsive public health programs for local needs.
On hold or court challenges
Public health groups have filed legal challenges regarding the withdrawal of promised multi-year grant funds for workforce development and COVID-19 recovery. A federal district court has allowed a case to proceed arguing that once a grant agreement is executed, the administration cannot unilaterally cancel it without cause. The case may have implications for dozens of community clinics and local health departments.
Timeline
Many public health program cuts are being phased in through FY2025. The largest impact will come in FY2026 as grants sunset without renewal. Some community clinics and nonprofit partnerships are already facing layoffs and service reductions in mid-2025 due to lost federal funding.
State-level impact
Kentucky, West Virginia, and South Carolina are especially vulnerable, having expanded rural and mobile health outreach using federal dollars. Ohio and Pennsylvania have robust local health department networks now preparing for deep reductions in operational funding. In North Carolina and Tennessee, maternal and child health programs that received targeted HRSA grants could see service disruptions or reductions in outreach.
Sources – Public Health and Medical Services
Centers for Disease Control and Prevention. (2025, March 5). FY2026 Congressional Budget Justification. https://www.cdc.gov/budget/fy2026/justification.html
Health Resources and Services Administration. (2025, March 12). Rural and community health grant changes. https://www.hrsa.gov/news/press-releases/fy2025-rural-grants-update
NPR. (2025, March 22). Public health programs hit by federal cuts. https://www.npr.org/2025/03/22/public-health-funding-cuts-2025
Modern Healthcare. (2025, April 1). Legal challenge over CDC grant cancellations moves forward. https://www.modernhealthcare.com/policy/legal-challenge-cdc-grant-cuts