Attorney General James Sues Trump Administration for Slashing Vital Health Funding

NEW YORK – New York Attorney General Letitia James and a coalition of 22 other states and the District of Columbia today filed a lawsuit against the Trump administration for abruptly and unlawfully slashing billions of dollars in vital state health funding. On March 24, the U.S. Department of Health and Human Services (HHS) announced it was clawing back more than $11 billion in funding previously allocated to states for public health, mental health, and addiction initiatives – including nearly $400 million for New York. The attorneys general argue that these sudden and reckless cuts violate federal law, jeopardize public health, and will have devastating consequences for communities nationwide. Attorney General James and the coalition are asking the court to immediately stop the administration from rescinding the funding and prevent the breakdown of crucial health services.

“The Trump administration’s illegal and irresponsible decision to claw back life-saving health funding is an attack on the well-being of millions of Americans,” said Attorney General James. “Slashing this funding now will reverse our progress on the opioid crisis, throw our mental health systems into chaos, and leave hospitals struggling to care for patients. My office is taking immediate action to stop this heartless and shortsighted move and ensure these life-saving programs remain intact.”

In the lawsuit, Attorney General James and the coalition assert that if funding is not restored, key public health programs and initiatives across the country will have to be dissolved and disbanded, and thousands of health care workers will lose their jobs. The terminated funds, which were allocated by Congress at the height of the COVID-19 pandemic, include $11.4 billion in funding from the Centers for Disease Control and Prevention (CDC) for pandemic preparedness, overdose prevention, and community health programs, as well as $1 billion from the Substance Abuse and Mental Health Services Administration (SAMHSA) for addiction treatment, suicide prevention, and crisis intervention programs.

The attorneys general warn that the revocation of this funding will cause immediate and irreparable damage in communities across the nation. Programs that provide harm reduction services, medication-assisted recovery treatment, and overdose reversal drugs are set to be slashed, just as the nation begins to turn a corner on fighting the opioid crisis and reducing overdose deaths. Funding for crisis intervention, suicide prevention, and community-based mental health care is at risk while the nation is currently facing an unprecedented mental health crisis. Financial support for hospitals, clinics, and long-term care facilities will be eliminated, exacerbating already devastating staffing shortages. Prevention programs that combat infectious disease outbreaks and future health emergencies are already being gutted.

In New York, more than $400 million in critical funding has been terminated, including over $300 million for the New York State Department of Health (DOH), Office of Mental Health (OMH), and Office of Addiction Services and Supports (OASAS) and over $100 million for New York City Department of Health and Mental Hygiene (DOHMH)’s infectious disease detection and surveillance work. These cuts are already causing devastating, far-reaching consequences. At least 23 public health employees have already been laid off, and further layoffs are likely. More than 200 local organizations statewide have now lost funding for their efforts to address food insecurity, mental health, maternal health, and more. DOH has been forced to halt efforts to address health disparities and shutter programs focused on LGBTQ+ and immigrant health. Funding for school immunization programs has also been cut, which could have disastrous effects on child vaccination rates. Most importantly, New York state’s ability to manage infectious diseases, support vulnerable populations, and maintain critical health infrastructure is now in jeopardy, and there are long-term risks for public health preparedness and equity.

HHS has tried to suggest that terminating this funding is necessary because the “COVID-19 pandemic is over.” This contradicts both ongoing public health data and the terms of the grants in question. In the lawsuit, the attorneys general assert that many of the eliminated funds were never intended solely for COVID-19 response – they were allocated to support long-term public health infrastructure, future pandemic preparedness, and critical behavioral health services.

Attorney General James and the coalition argue the federal government does not have the legal authority to unilaterally rescind funding it already allocated, particularly when states have built essential health programs around these commitments. The attorneys general add that the terminated funds are attached to specific congressional allocations, and that by cutting these funds, the administration is undermining Congress’s constitutional power over federal spending. The lawsuit alleges the decision to terminate these funds was made abruptly, arbitrarily, and without any opportunity for public input.

In addition to preliminary and permanent injunctions, Attorney General James and the coalition are seeking a temporary restraining order to immediately halt the chaos and destruction the administration’s funding cuts are causing.

“These federal health cuts are not only dangerous, but they undermine public health and will broaden the health disparities we have been working hard to eliminate,” said DOH Commissioner Dr. James McDonald. “It is unprecedented and unacceptable to have funding terminated retroactively without warning or regard for the impact on this important public health work. I thank Attorney General James for taking immediate action, ensuring the health of New Yorkers remains a priority, and working to get these reckless actions during the federal transition reversed.”

“The removal of these grants will affect prevention, treatment, harm reduction, and recovery services that many New Yorkers rely on, and which have saved thousands of lives throughout the state,” said OASAS Commissioner Dr. Chinazo Cunningham. “Amid the ongoing overdose crisis, it is critical that these services remain intact and available for those who need them. We fully support these efforts to ensure that this critical funding continues to go towards these vital addiction services in New York.”

“The loss of $27 million in federal funding will impact the mental health services and supports provided through our agency, including crisis stabilization and residence programs, Assertive Community Treatment teams and the 988 Suicide and Crisis Lifeline,” said OMH Commissioner Dr. Ann Sullivan. “We are pleased that New York State is challenging these cuts in in an effort to avoid the consequences of losing this critical federal assistance. We look forward to working with the Attorney General and Governor Hochul as they challenge these cuts and fight to preserve funding for these important programs.”

“The public health programs built by state and local governments using this federal funding are at risk of collapsing because of the federal government’s illegal clawback,” said New York City Corporation Counsel Muriel Goode-Trufant. “As Mayor Adams has said time and again, we will always stand up for New York City and this unlawful reversal of money appropriated by Congress would be devastating to people and families in our communities who rely on these health services. This lawsuit seeks immediate relief from the court.”

This is the latest action Attorney General James has taken to protect New Yorkers and the services they rely on from the Trump administration’s illegal attacks. On March 14, Attorney General James and a coalition secured a court order reinstating federal workers subject to mass firings at 18 agencies. On March 13, Attorney General James led a coalition of 20 attorneys general in suing the Trump administration to stop the dismantling of the Department of Education. On March 10, Attorney General James secured a court order blocking the Trump administration from cutting critical grant programs for teachers and on March 6, Attorney General James secured a court order blocking the Trump administration’s freeze of essential federal funds to states. On March 5, Attorney General James and a coalition of attorneys general won a court order stopping the Trump administration from withholding vital funding to the National Institutes of Health. On February 24, Attorney General James led a coalition of attorneys general in securing a court order preventing Elon Musk and members of DOGE from accessing Americans’ private information through the U.S. Treasury and on February 13, Attorney General James and a coalition of attorneys general secured a preliminary injunction stopping the administration’s illegal revocation of birthright citizenship. 

Joining Attorney General James in this lawsuit are the attorneys general of Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, North Carolina, Oregon, Rhode Island, Washington, Wisconsin, and the District of Columbia, as well as the Governors of Kentucky and Pennsylvania.