State, local public health officials grapple with fallout from funding, job cuts

Public health department in San Francisco

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Public health officials around the country are long familiar with the boom-and-bust cycles that have marked public health funding in the United States. When you have an emergency that needs an immediate response, like a pandemic, the money flows. When the crisis is over, the money tends to dry up, making it hard for state and local health departments to prepare for the next emergency.

With the COVID-19 pandemic declared over and a new presidential administration coming into office with a stated objective of cutting the deficit and dramatically reducing the size and scope of the federal government, a return to the bust part of the cycle was expected. But what's transpired under the second Trump administration has been even worse than what many officials were prepared for.

It started with the layoffs at federal health agencies that began in February and accelerated on March 27, when the Department of Health and Human Services (HHS) announced plans to reduce its workforce by 10,000 workers. State and local health department officials quickly feared the loss of experts at the federal level would substantially affect them.

But perhaps the biggest blow came 2 days earlier, when HHS announced it was blocking $11.4 billion in previously approved federal funding to states related to the COVID-19 pandemic and other public health threats. Although that funding has temporarily been restored by federal judges while a lawsuit challenging the cuts winds its way through the courts, the move has raised alarms about what's to come and how it could impair the ability of state and local health departments to respond to infectious disease outbreaks and other public health emergencies.

"The scale of it is something that we haven't seen before," Association of State and Territorial Health Officials (ASTHO) President Scott Harris, MD, MPH, told CIDRAP News. "I'm very concerned."

Slashed funds mean smaller programs, less staff

What many Americans probably don't know, Harris explains, is that most federal money spent on public health goes to directly to state and local health departments. A 2022 report by the National Association of County & City Health Officials found that federal sources—primarily grants from the Centers for Disease Control and Prevention (CDC)—accounted for 55% of local health department budgets. 

As much as 80% to 90% of the funding for state and local programs that monitor and combat infectious diseases comes from CDC grants. State and local health departments use that money to pay for staff and fund local partner organizations.

In fiscal year 2023, the CDC obligated $14.9 billion to states and local jurisdictions. A significant share of that ($5.7 billion) consisted of time-limited funding for COVID-19 and public health infrastructure rebuilding, according to an analysis by KFF. 

"A cut in money at the federal level impacts the work of state and local health departments in a profound way," says Harris, who's also the state health officer for the Alabama Department of Public Health. "It doesn't just mean fewer dollars flowing or smaller programs—it also means [cuts to] a lot of staff."

The HHS termination of the COVID funding in March meant the loss of $190 million in funding for the Alabama Department of Public Health, much of it tagged for immunization programs and health equity efforts, Harris says. For the Minnesota Department of Health (MDH), the amount was $226 million, a loss MDH officials said would result in the suspension of partner-led vaccine clinics and emergency preparedness activities, slower response times for infectious disease outbreaks, and reduced lab support for hospitals and healthcare facilities.

CDC headquarters
James Gathany / CDC

On April 1, MDH officials announced they'd sent layoff and separation notices to 170 employees whose positions were funded by that money. MDH was able to rescind many of those layoffs after a federal judge issued a temporary restraining order on April 5, in response to a lawsuit filed against HHS by Minnesota and 15 other states. On May 16, the cuts were again blocked when a federal district court in Rhode Island issued a preliminary injunction

But the recissions didn't apply to temporary staff or contractors who'd been laid off, many of them from teams that have been working with local partners on engagement with communities that disproportionately bear the burden of infectious diseases. And courts could still find that the administration is within its rights to pull the funding.

A cut in money at the federal level impacts the work of state and local health departments in a profound way.

Scott Harris, MD, MPH

"It's been highly disruptive to our work," MDH Commissioner Brooke Cunningham, MD, PhD, says. "Many of our projects continue to go forward, but at a reduced pace because we just don't have the same teams here. There are a number of areas, particularly in infectious diseases as well as in our health equity bureau, that are operating at a reduced capacity."

In a recent episode of The Nation's Health podcast from the American Public Health Association, City of Minneapolis Health Department Commissioner Damon Chaplin, MBA, said that while previous funding cuts from the CDC have affected specific programs, the current cuts—should they go through—will affect the whole department. "We're looking at potentially whole functions within health departments not being able to do what they were designed to do because of these cuts," he said.

'The bill will come due'

Cunningham is also worried that the Trump administration will be looking for others way to reduce or cut funding to state and local health departments. Recent reporting by NPR indicates that CDC grants to state and local health departments haven't been showing up on schedule, leading to programs in some states to be abruptly halted. And the fiscal year 2026 budget blueprint released by the Trump administration in May calls for an additional $3.6 billion in funding cuts for the CDC.

For Cunningham and other state and local health officials, the funding cuts are a reminder of a reality she says she didn't fully understand until she came to MDH—that the country's public health infrastructure relies on a strong and reliable federal partner.

"That is the system we have built over time," she says. "Should the federal government pivot away from that obligation? States do not have the resources."

Part of the problem, says Brian Castrucci, DrPH, president and CEO of the de Beaumont Foundation, is that the fund reductions are being framed as a health department issue, and most Americans simply don't spend much time thinking about their state and local health departments. Average citizens might get upset when teachers are laid off or police budgets are cut because they understand what the impact could be, he argues. But there's not much awareness of how cuts to public health departments might affect them, until there's a public health emergency.

"People don’t really know what the impact is" when public health professionals are laid off, Castrucci says.

ASTHO's Harris agrees.

"When you don't hear anything about public health, that's because things are working really well," he says. "You can go out to eat and not worry about getting sick, you can turn on the faucet and drink the water, or you can send your kid to school and not worry about them catching some unusual illness."

Castrucci believes we're in a time of peril, and most people aren't seeing it.

"That lack of awareness is going to set the country up for a real fall," he says. "We may be able to get along without these health programs for a while, but the bill will come due."

Loss of federal expertise

While the cuts in federal funding will have a crippling impact on the ability of state and local health departments to respond to public health emergencies, experts warn that the layoffs and early retirements at agencies under the HHS umbrella, including the CDC and the Food and Drug Administration (FDA), could also hamper response. 

An example was provided this spring, when the Milwaukee Health Department sought epidemiologic and analytic support from the CDC to help deal with high lead levels in the city's public schools. The request was denied because all the staffers with the CDC's Childhood Lead Poisoning Program had been placed on administrative leave.

"This is a pretty unprecedented scenario to not have somebody to turn to at the CDC," Milwaukee Health Department Commissioner Mike Totoraitis, PhD, said at an April 14 press conference, the Wisconsin Examiner reported. The entire CDC lead team was reinstated on June 11, but it's unclear if members of the team have been deployed to the city.

Health workers conducting COVID testing
National Guard / Flickr cc

In many instances of infection-related or foodborne disease outbreaks, CDC and FDA investigators work with state and local department investigators to identify the source of the outbreak and help get it under control. While expertise exists at the state and local levels, collaboration with federal experts is often needed in places where health departments may not have the capacity to handle a growing public health problem. 

"There's a lot of coordination," says Alex Sundermann, DrPH, MPH, an assistant professor of epidemiology at the University of Pittsburgh. Sundermann says he's worried that a scenario similar to what happened in Milwaukee could play out elsewhere and with different types of outbreaks.

"We could see a hospital have a very distinct outbreak or unique type of outbreak where federal expertise could be very helpful, but it might not be available," he says. 

"Virtually no state has the subject matter expertise that resides in the federal government, CDC in particular," says Harris, adding that in states like Alabama, the expertise provided by the CDC is critical.

"We rely on the federal government to give us guidance, to provide subject matter experts, to have people who can answer questions that we have, and to help us develop strategy," he says.

We may be able to get along without these health programs for a while, but the bill will come due.

Brian Castrucci, DrPH

Although some critical workers at the CDC who were laid off in the spring have been reinstated, and others are in limbo pending legal challenges, the reductions in force at HHS continue. Earlier this week, following a Supreme Court ruling on July 8 that said the Trump administration could continue with its efforts to reduce the federal workforce while challenges play out in lower courts, the department sent out dismissal notices to many of the 10,000 employees it announced it would be cutting on March 27.

Castrucci said less help from the CDC and other federal health agencies will be a challenge that will likely force state and local health departments to look elsewhere to supplement their expertise.

"We might need to look to universities, or to other health departments, to fill that gap," he says. "We're going to have to make some hard choices in our health departments, but I know we will have a response."

An uncertain future

There's also concern about how this is affecting the people who've devoted their professional lives to protecting public health, especially in the wake of the COVID-19 pandemic, which saw many Americans turn against public health institutions at all levels. Between the public backlash and the fear of losing a job because of federal funding cuts, many in public health might simply decide it's no longer worth it. 

"I think people like to be in public health because they feel like it's a job that lets them make a difference…but it can become an unpleasant enough environment that people just choose to do something else," Harris says. "I wouldn't be surprised by that." 

In addition, college students who might at one time have considered a career in public health may no longer be interested if there are fewer jobs available. 

Scientist looking through microscope
JHDT Stock Images LLC / iStock

This all contributes to a prominent theme that emerges from conversations with public health professionals: Even if the White House and Congress are controlled in the future by people who are more supportive of public health, rebuilding gutted state and local departments will be difficult.

"It's really easy to break stuff. You can do that real quick," Cunningham says. "It's hard to build it back."

"We're going to lose people, we're going to lose experience," says Castrucci. "And all of that is going to place our nation in considerable uncertainty."

But for Castrucci, the uncertainty might provide public health professionals with an opportunity to rethink how the country's public health infrastructure is funded. "We've lamented the boom-and-bust funding cycle for decades but never changed it," he says. 

It's really easy to break stuff. You can do that real quick....It's hard to build it back.

Brook Cunningham, MD, PhD

Changing that cycle, Castrucci argues, can't simply rely on a new president. It will require better communication from state and local public health leaders, not only to counter misinformation but also to promote the idea that communities are better off with strong public health institutions. He suggests every public health commissioner should have an email list with school officials, religious leaders, and business leaders who they can turn to for support with this messaging.

Castrucci says public health leaders probably should have started doing this years ago. But he thinks the urgency of the moment could provide the spark for creating "value that people understand and demand." 

"Don't get me wrong—we are going to refund public health," he says. "The question is how many people have to die before we do it?"

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