DOGE Reports $ 394 million In MDHHS Cuts

The response of Michigan House Democrats referenced in the BridgeMI article, above:

https://housedems.com/house-dems-decry-doge-slashing-nearly-400-million-from-michigans-public-health-services/

House Dems Decry DOGE Slashing Nearly $400 Million From Michigan’s Public Health Services
MI GOP joins DOGE crusade to gut MDHHS funding with destructive, irresponsible budget plan

LANSING, Mich., March 28, 2025 — The Department of Government Efficiency (DOGE) cut more than $390 million in federal grants to the Michigan Department of Health and Human Services (MDHHS) this week, threatening public health services and jeopardizing thousands of public sector jobs in the state. The cuts are part of DOGE’s crusade to slash more than $11 billion nationwide in Health and Human Services grants this week.

“While we await confirmation from the Department on this past week’s potential $390 million in cuts by federal administration to MDHHS grants, I would like to uplift the same statement I have been consistently saying this year, which is that many in Michigan are already struggling to get by with increased costs to everything from health care to groceries,” said state Rep. Julie Rogers (D-Kalamazoo). “These draconian cuts to programs like Medicaid will impact prenatal care for pregnant mothers, newborn babies who need their check-ups, and life-saving mental health care for those who struggle with severe depression or addiction. These funding slashes cannot come at a worse time, with measles and influenza on the rise. We must protect funding for the health of our most vulnerable, from babies to the elderly.”

The hit to federal public health funding comes as Michigan House Republicans passed their Republican budget that would gut state funding to MDHHS as well as to Medicaid, stripping health care for 2.7 million Michiganders. This double hit to MDHHS funding could force Michiganders to pay even more to keep their families healthy.

“It is clear that the federal and state Republican agendas are one in the same: make Americans and Michiganders less healthy and safe, just to make the billionaires in the White House richer. It’s the same playbook in Lansing as it is in DC — defund Health and Human Services, deprioritize public health, and abandon middle-class and working Michiganders,” said state Rep. Carrie Rheingans (D-Ann Arbor). “No matter what way you spin it, Michigan does not have the financial reserves to make up for these life-threatening federal cuts. But Michigan Democrats have been and will continue sounding the alarm about the attacks on our health and health care, because we’ve seen that our collective pushing back has reversed some of these terrible and poorly thought-out decisions from DC. It’s disappointing that Michigan Republicans aren’t joining us in pushing back, even though their constituents will be just as hurt as the rest of us.”

While Congress initially authorized this funding during the COVID-19 pandemic, states have relied on the remaining grant money for other public health programs, including to combat new infectious diseases and provide mental health and addiction support services. The Republican budget could also jeopardize MDHHS services that families and kids across the state rely on, including child health and care assistance programs.

“Budgets begin with those things that matter most, like affordable healthcare. Clearly supporting families and the most vulnerable in our communities didn’t make my Republican colleagues’ priority list based on their budget,” said state Rep. Stephanie A. Young (D-Detroit). “Cutting funding to MDHHS is anti-family and anti-worker. Michigan’s kids, the future generation of leaders in our state whose health and childhood depend on the MDHHS’ ability to support them, need lawmakers who prioritize their health and wellbeing. House Democrats have and will continue to answer the call for fairness and equity.”

With Michigan recently confirming new cases of bird flu and measles, this funding loss may also prove detrimental to the state’s ability to immediately respond to diseases and outbreaks.

“The health and health care of millions of Michigan families are being targeted by Republicans in DC and Lansing. These Republicans have lost their minds. In what world is it OK to put the health and welfare of millions of Michigan families at risk in order to pay for tax cuts to billionaires or score political points in the state budget process? Their crazy and chaotic cuts are putting us all at risk by ripping away federal funding for MDHHS, eliminating programs which save lives, threatening the ability of seniors to be able to afford long-term care, and increasing the chances that clinics and hospitals will have to close their doors,” said state Rep. Dr. Matt Longjohn (D-Portage). “Make no mistake: the chaos at the federal level is only being made worse by the actions of Republicans in Lansing. It is unconscionable that Republicans in the House are willing to play politics with peoples’ lives and pass a budget which will reduce the access to health care services for 2.7 million Michiganders. Every person needs and deserves a government that puts their health first, before party politics and before wealthy influence.”

The Michigan House Democrats somehow failed to mention the massive double payments fraud uncovered in the Medicaid program.

AG Nessel is a signatory to a secret December agreement to oppose all actions of the Trump Administration. Here she sues over the MDHHS grant terminations.  Note that there is a $ 14 million discrepancy in the total between this report and Bridge's report March 28th (above):

https://www.bridgemi.com/michigan-health-watch/nessel-sues-trump-health-cuts-hit-michigan-disease-addiction-programs

Nessel sues as Trump health cuts hit Michigan disease, addiction programs
Kelly House - April 1, 2025

*   The Trump administration canceled about $12 billion in federal health care grants to states, including $380 million destined for Michigan

*   Michigan Attorney General Dana Nessel is suing, arguing the administration failed to justify the cutsLocal health departments across the state are affected by the loss of funding for infectious disease surveillance and vaccinations, as well as substance abuse, gambling and mental health services

*   Michigan Attorney General Dana Nessel is suing the Trump administration over its cancellation of nearly $380 million in health care grants to the state of Michigan.

Nessel joined a coalition of governors and attorneys general from 23 states and the District of Columbia to file suit Tuesday in US District Court in Rhode Island, alleging that the US Department of Health and Human Services and its leader, Robert F. Kennedy Jr., acted illegally when they canceled the grants.

The lawsuit seeks a temporary restraining order to reverse the grant cancellations while the case proceeds.

“The Trump administration is now terminating millions in grants being used in our state to support vaccine clinics for kids, crisis mental health services, opioid abuse intervention, and to control disease spread in healthcare facilities,” Nessel said in a statement Tuesday. “And once again they’re breaking the law to take money that has been granted to the states. These programs keep Michigan healthy and, in some cases, help save lives, and that’s worth standing up and fighting for.”

The lawsuit stems from the Trump administration’s decision last week to cancel more than $12 billion in public health grants allocated to state health departments nationwide during the COVID-19 pandemic, including about $11.4 billion allocated by the Centers for Disease Control and Prevention and about $1 billion from the Substance Abuse and Mental Health Services Administration.

Much of the congressionally approved funding was intended to help states address the spread of disease and the secondary effects of the pandemic, like spiking rates of addiction and mental health issues.

Responding to a question from Bridge Michigan about the grant terminations, a spokesperson for the Substance Abuse and Mental Health Services Administration said “the COVID-19 pandemic is over, and HHS will no longer waste billions of taxpayer dollars responding to a non-existent pandemic that Americans moved on from years ago.”

But health officials contend that the money was doing more than merely responding to COVID.

Some of it was meant to better prepare public health agencies to respond quickly to future public health threats, after the pandemic revealed gaps in the nation’s public health systems, said Norm Hess, executive director of the Michigan Association for Local Public Health.

“I understand the sentiment that the COVID pandemic response phase is over, but many of the things that happened during COVID highlighted the need for additional systems, training and staff positions for the next time,” Hess said.

Nearly a week after Bridge Michigan first asked the Michigan Department of Health and Human Services how the cuts might affect Michigan, the department on Tuesday acknowledged 20 canceled grants totaling $380 million.

Most of the money was headed to local health departments throughout the state for things like vaccinating vulnerable Michiganders, providing services for people with serious mental illnesses, addiction and gambling problems, and monitoring wastewater for infectious diseases.

“We are working with our affected subgrantees and have advised them to hold on spending any unobligated funds, while we review possible reductions in funding and evaluate next steps,” said MDHHS spokesperson Lynn Sutfin.

The Elon Musk-run cost-cutting mission known as the Department of Government Efficiency has reported even larger cuts in Michigan, at $394 million, but DOGE’s accounting has routinely been riddled with major errors.

In the immediate wake of the grant cancellations, state officials and local public health departments funded by the federal grants were scrambling to understand the impact.

Nessel's office said Tuesday that the terminations have caused “chaos for state health agencies that rely on these critical funds for a wide range of urgent health care needs.”

Among the grants canceled, according to Nessel’s office, is $49 million that remained on a Centers for Disease Control and Prevention grant that the state planned to use in part to immunize people against seasonal respiratory viruses. Another grant was being used to control infectious diseases by upgrading laboratories throughout the state. Without it, Nessel’s office said, “the MDHHS’s and local health departments’ capacity to respond to healthcare-associated infections in healthcare facilities is effectively eliminated.”

The coalition’s lawsuit contends the Trump administration violated federal law when it canceled the grants “for cause.” It argues that the end of the pandemic is not a lawful cause for cancelling funds that were not designed to sunset at the end of the pandemic.

Spokespeople for the federal health and substance abuse departments did not immediately respond to a request for comment.

AG Nessel's press release:

https://www.michigan.gov/ag/news/press-releases/2025/04/01/attorney-general-nessel-sues-federal-hhs-sec-kennedy

https://ag.ny.gov/sites/default/files/court-filings/colorado-et-al-v-us-department-of-health-and-human-services-et-al-complaint-2025.pdf

Attorney General Nessel Sues Federal HHS, Sec. Kennedy to Overturn more than $370 Million in Public Health Grant Cuts in Michigan
By Danny Wimmer - April 01, 2025

LANSING — Michigan Attorney General Dana Nessel today joined a coalition of 23 states and the District of Columbia in filing a lawsuit against the U.S. Department of Health and Human Services and HHS Secretary Robert F. Kennedy, Jr. for abruptly and illegally terminating nearly $11 billion in critical public health grants nationwide, including $379.3 million in grant funding awarded and owed to the State of Michigan. Michigan grants suddenly terminated include certain mental health and substance abuse grants and grants from the Centers for Disease Control and Prevention meant to support infectious disease control and vaccinations for children and vulnerable adults.

“The Trump administration is now terminating millions in grants being used in our state to support vaccine clinics for kids, crisis mental health services, opioid abuse intervention, and to control disease spread in healthcare facilities,” said Attorney General Nessel. “And once again they’re breaking the law to take money that has been granted to the states. These programs keep Michigan healthy and, in some cases, help save lives, and that’s worth standing up and fighting for.”

The grant terminations, which came with no warning or legally valid explanation, have quickly caused chaos for state health agencies that rely on these critical funds for a wide range of urgent public health needs, such as infectious disease management, fortifying emergency preparedness, providing mental health and substance abuse services, and modernizing public health infrastructure. Michigan stands to lose nearly $380 million from these cancellations by HHS.

Among the Michigan grants purportedly terminated were:

*   A mental health grant to support services for Michiganders suffering serious mental illness or severe emotional disturbances, including children's services.

*   A substance abuse grant to enhance substance use disorder services for underserved and marginalized populations, including pregnant women, women with young children, opioid users, and rural populations.

*   CDC funding for the control of infectious diseases that was funding laboratory upgrades statewide, throughout both peninsulas, and without which the MDHHS’s and local health departments’ capacity to respond to healthcare-associated infections in healthcare facilities is effectively eliminated.

*   And CDC grants for the immunization and vaccination of children that were being used for vaccine ordering and storage, hosting vaccine clinics, and supporting translation services for vaccination information to non-English speaking parents and patients. The State was due a remaining balance of $49 million toward these awards and intended to use part of these funds to provide routine immunizations and immunizations against seasonal respiratory viruses to children, adults, and vulnerable and underserved populations.

MDHHS staff and affiliates, contractors, and vendors rely on these federally promised funds to perform critical public health services and activities throughout the State. HHS’s abrupt termination of these federal funds has caused panic among MDHHS’s employees, partners, subgrantees, and service recipients, many flooding the health agency with questions still left unanswered by the federal government. These abrupt and illegal grant terminations will cause harm not just to MDHHS as the State’s public health agency, but to all 45 of Michigan’s local health departments, 46 community mental health service programs, and community-based organizations that collectively play a large role in providing direct health and public health services to Michigan residents. More than 300 grants awarded by MDHHS from these federal funds will be impacted by these terminations, which will result in more than $80 million never reaching the direct-care state grant recipients.

The HHS cuts threaten the urgent public health needs of states around the country at a time when emerging disease threats—such as measles and bird flu—are on the rise, Attorney General Nessel and the coalition warn.

Congress authorized and appropriated new and increased funding for many grants in COVID-19-related legislation to support critical public health needs. Many of the grants impacted nationally are from specific programs created by Congress, such as the block grants to states for mental health and substance abuse and addiction services. Yet, with no legal authority or explanation, Secretary Kennedy’s HHS agencies on March 24 arbitrarily terminated these grants “for cause” effective immediately claiming that the COVID-19 pandemic is over and the grants are no longer necessary.

In their lawsuit, filed in the U.S. District Court in Rhode Island, the coalition of attorneys general assert that the mass terminations violate federal law because the end of the pandemic is not a “for cause” basis for ending the grants, especially since none of the appropriated funds are tied to the end of the pandemic which occurred more than a year ago. HHS’s position, until very recently, was that the end of the pandemic did not affect the availability of these grant funds. Moreover, for some of the grants, termination “for cause” is not a permissible basis for termination, yet the federal government unlawfully terminated them.

With this lawsuit, Attorney General Nessel and the coalition are seeking a temporary restraining order to invalidate Secretary Kennedy’s and HHS’s mass grant terminations in the litigating states, arguing that the actions violate the Administrative Procedure Act. The states are additionally asking the court to prevent HHS from maintaining or reinstating the terminations and any agency actions implementing them.

Joining Attorney General Nessel in the lawsuit are the attorneys general of Arizona, California, Colorado, Connecticut, Delaware, the District of Columbia, Hawai’i, Illinois, Maine, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Washington, and Wisconsin, and the Governors of Kentucky and Pennsylvania.

U.S. District Judge Mary McElroy just asserted her Article II authority over the President to control federal government spending and issued a Temporary Restraining Order today:

https://www.politico.com/news/2025/04/03/federal-judge-says-she-will-temporarily-block-billions-in-health-funding-cuts-to-states-00271483

Federal judge says she will temporarily block billions in health funding cuts to states
The states’ lawsuit seeks to immediately stop $11 billion in cuts.
By Associated Press - April 3, 2025 07:10 PM EDT

A federal judge will temporarily block President Donald Trump’s administration from cutting billions in federal dollars that support COVID-19 initiatives and public health projects throughout the country.

U.S. District Judge Mary McElroy, appointed by Trump in 2019 but first nominated by former President Barack Obama, in Rhode Island said Thursday that she plans to grant the court order sought by 23 states and the District of Columbia.

“They make a case, a strong case, for the fact that they will succeed on the merits, so I’m going to grant the temporary restraining order,” said McElroy, who plans to issue a written ruling later.

New York Attorney General Letitia James tweeted about the judge’s decision immediately after the hearing, saying: “We’re going to continue our lawsuit and fight to ensure states can provide the medical services Americans need.”

Assistant U.S. Attorney Leslie Kane objected to the temporary restraining order in court but she said she was limited in the argument she could make against it, adding that her office was unable to thoroughly review the thousands of documents under the time limitation.

The states’ lawsuit, filed Tuesday, sought to immediately stop the $11 billion in cuts. The money was allocated by Congress during the pandemic and mostly used for COVID-related initiatives, as well as for mental health and substance use efforts. The lawsuit said losing the money would devastate U.S. public health infrastructure, putting states “at greater risk for future pandemics and the spread of otherwise preventable disease and cutting off vital public health services.”

The U.S. Department of Health and Human Services has defended the decision, saying that the money was being wasted since the pandemic is over.

State and local public health departments already have laid off people, including nearly 200 employees at the Minnesota Department of Health. North Carolina says it stands to lose about $230 million, and California officials put their potential losses at $1 billion.

Pennsylvania Gov. Josh Shapiro, who is also part of the lawsuit, said half a billion dollars in public health grants that support long-term care for the elderly and immunizations for children were at stake in his state.

“As a result of taking the Administration to court, these dollars will now start flowing again,” he wrote on X.

The temporary block on chopping health funding is the latest legal setback for the Trump administration, which is facing some 150 lawsuits on issues ranging from immigration to deep financial and job cuts at federal agencies to transgender rights. Federal judges have issued dozens of orders slowing — at least for now — the president’s ambitious conservative agenda.