US Judge Pauses $11 Billion Trump Public Health Fund Pullback After State Lawsuit

Jessica Morales—April 4, 2025199

PROVIDENCE, RHODE ISLAND – A federal judge in Rhode Island on Thursday, April 3, 2025, issued a Temporary Restraining Order, known as a TRO, that temporarily blocks approximately $11 billion in public health funding cuts sought by the Trump administration. The action stems from a lawsuit filed earlier this week by a broad coalition of states challenging the U.S. Department of Health and Human Services (HHS) decision to rescind previously allocated funds.

The ruling by Judge Mary McElroy of the U.S. District Court for the District of Rhode Island provides a temporary reprieve for critical public health initiatives across the nation that were facing immediate termination. The lawsuit, Case No. 1:25-cv-00121, was initiated on April 1, 2025, in the same court by 23 states and the District of Columbia, who argued that HHS’s action was unlawful and would inflict severe harm on public health infrastructure.

The Controversial Funding Cuts

The challenged action originated from an abrupt decision announced by HHS on March 24. The department moved to claw back funds that had been previously allocated to states through COVID-19-related laws. These funds were designated for a wide array of essential public health programs, including disease surveillance, harm reduction strategies, health education campaigns, testing services, treatment programs, vital mental health services, and addiction programs.

States contend that these funds were critical to maintaining the progress made in recent years, often bolstered by federal support aimed at addressing the ongoing impacts of the pandemic and bolstering overall public health preparedness and response capabilities. The sudden withdrawal of these significant resources posed an immediate threat to the continuity and viability of these initiatives.

The States’ Legal Challenge

The coalition of states filing the lawsuit presented a compelling legal argument against HHS’s decision. They asserted that the agency’s move to terminate these funding streams exceeded its legal authority. Furthermore, they argued that the cuts were unlawful under the Administrative Procedure Act (APA), the federal law governing the process by which federal agencies develop and issue regulations.

The plaintiffs detailed the potentially devastating consequences of the funding terminations. They warned that the withdrawal of funds would force the dissolution of critical public health programs nationwide, severely impacting communities that rely on these services. States argued that such an abrupt financial cliff would dismantle years of investment in public health infrastructure and leave populations vulnerable.

Impact on States: The Michigan Example

The potential impact of the proposed cuts was highlighted by specific examples cited by the plaintiff states. Michigan, one of the states involved in the lawsuit, provided a stark illustration of the anticipated effects.

Michigan reported facing approximately $380 million in cuts as a result of the HHS decision. This significant reduction in funding was expected to have wide-reaching consequences within the state, impacting over 330 local grants that support various health initiatives at the community level.

Moreover, the cuts were projected to directly affect approximately 120 Michigan Department of Health and Human Services (MDHHS) employees and affiliates whose positions and work depended on the now-rescinded federal funding.

Michigan officials voiced strong opposition to the proposed cuts. Michigan Attorney General Dana Nessel and MDHHS Director Elizabeth Hertel both commented on the expected negative impact, underscoring the disruption to essential services and the potential loss of jobs supporting public health efforts across the state. Their statements reflected the broader concerns shared by the coalition of states regarding the integrity and sustainability of public health programs under threat.

Judicial Intervention Provides Temporary Relief

Judge Mary McElroy, presiding in the U.S. District Court for the District of Rhode Island, heard the states’ arguments and issued the Temporary Restraining Order on Thursday, April 3, 2025. While temporary, the TRO prevents HHS from immediately implementing the $11 billion in funding cuts, providing time for further legal proceedings to determine the legality of the agency’s action.

The issuance of a TRO indicates that the judge found the states demonstrated a likelihood of success on the merits of their case and that irreparable harm could occur if the cuts were allowed to proceed. This judicial intervention underscores the seriousness of the legal challenge brought by the coalition of states and the potential magnitude of the impact on public health programs if the cuts were ultimately upheld.

The temporary block allows affected states and public health programs to continue operating with the previously allocated funds while the court considers the full merits of the lawsuit. The case, Case No. 1:25-cv-00121, is expected to proceed with further legal arguments and potentially motions for preliminary or permanent injunctions as the states seek a more lasting block against the contested funding clawback. The outcome of this legal battle in the U.S. District Court for the District of Rhode Island holds significant implications for the future of federally supported public health initiatives nationwide.