HHS pauses, then restores, $5 billion in state health grants

Jessica Nix, Bloomberg News on Jan 24, 2026

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The U.S. Department of Health and Human Services notified states on Saturday that it would pause public health grants worth about $5 billion, then hours later said it would lift the halt.

The grants were suspended to evaluate whether activities were in “alignment with administration and agency priorities,” according to an email viewed by Bloomberg News.

The temporary pause was for HHS to implement a new review process and to “ensure funds are used for their intended purposes,” said Andrew Nixon, a spokesperson for the agency. He said that states would be notified that the pause had been lifted.

The sudden change is similar to the turnabout earlier this month when the Trump administration notified behavioral health organizations that it was terminating $2 billion in grants because their federal awards did not align with the priorities at the Substance Abuse and Mental Health Services Administration. Under pressure from medical groups and lawmakers, the administration reversed its decision days later.

The bulk of federal grants to state and local public health agencies are awarded through the Centers for Disease Control and Prevention over a five-year period to help departments with their work forces and data modernization. The funding is also used to support diversity and health equity programs, according to the public health infrastructure grant website.

News of the state and local health funding pause was met with frustration. “It’s another senseless disruption when we are trying to provide public health services,” said Phil Huang, director of Dallas County Health and Human Services. Dallas is facing $2.1 million in grant losses that supported disease investigations, surveillance systems and vaccine management programs, he said.

The Public Health Infrastructure Grants were first awarded to states in fall 2022.

Other recipients include the Association of State and Territorial Health offices, the National Network of Public Health Institutes and the Public Health Accreditation Board. The work from these partners supports 107 health departments to provide technical assistance.

The CDC has been hit with widespread staff layoffs and funding cuts since Health and Human Services Secretary Robert F. Kennedy Jr. started his role in the top post.