HHS Cancels $12 Billion in COVID-Era Funding for State Health Departments

‘The pandemic is over,’ says the Department of Health and Human Services. State officials say the money was meant for other diseases too.

People wait to be tested for the coronavirus at a pop-up site in New York on July 11, 2022. Brendan McDermid/Reuters

The Department of Health and Human Services (HHS) has pulled back roughly $12 billion in federal grants that had been allocated to states during the COVID-19 pandemic, the agency said on March 26.

HHS said the money was intended to be used for COVID-19 testing, vaccination, and other pandemic services. The agency began sending termination notices on Monday, according to a statement.