State AGs sue HHS over sweeping cuts

Editor's Note

State attorneys general from 20 states filed suit to block major restructuring and layoffs at the Department of Health and Human Services (HHS), alleging the actions bypass Congress, violate federal law, and endanger public health.

As detailed in a May 5 report from Fierce Healthcare, the lawsuit seeks injunctive relief and reinstatement of critical programs impacted by workforce reduction and elimination of entire offices within HHS. Examples include Medicaid eligibility determinations, substance use and mental health services, tobacco prevention, and infectious disease surveillance. Plaintiffs say the agency acted unilaterally to fulfill a February executive order aimed at overhauling the federal workforce, bypassing the required congressional approval for such structural changes.

The move affected about 10,000 positions at HHS alone and included the shuttering or folding of offices into a new “Administration for a Healthy America,” Fierce Healthcare reports. A leaked budget and a “skinny budget” released May 2 suggest HHS could see its funding slashed by $40 billion.

Programs cited as being severely impacted include the World Trade Center Health Program for 9/11 first responders and multiple labs testing for diseases such as hepatitis. The lawsuit claims that immediately after the reduction in force, agencies were paralyzed, with no one to answer the phone and research and training events cancelled. The article quotes New York Attorney General Letitia James sharply criticizing the changes, classifying them as deliberate sabotage of public health infrastructure.

According to the article, the lawsuit follows a separate but similar complaint filed by labor unions, nonprofit organizations, and municipal governments—including Baltimore, Chicago, and San Francisco—arguing that the reorganization violates the Constitution’s separation of powers and exceeds presidential authority.

Public sentiment may not be on the administration’s side, Fierce Healthcare reports, citing polling from KFF. These data show 60% of Americans oppose major staffing and budget cuts to federal health agencies, and even many Republican respondents said they do not support reducing services related to infectious disease tracking, mental health, Medicare, or Medicaid.

The full report offers additional context, including HHS denying reports about layoffs at the National Institute of Occupational Safety and Health, background on previous HHS cuts, and details on “Schedule F,” a policy that will make it easier for the administration to further reduce the federal workforce.