'Reckless' $350M Funding Cut Could Put NJ Lives At Risk, AG Says

NEW JERSEY — New Jersey is suing the U.S. Department of Health and Human Services after the agency abruptly terminated nearly $11 billion in public health grants to states, including more than $350 million in federal funding for the Garden State.

On Tuesday, Attorney General Matthew Platkin said the cuts would "gut" New Jersey public health programs that prevent the spread of infectious diseases like measles and bird flu. Vaccinations and mental health and substance abuse services would also be affected.

“Instead of looking out for our health, the Trump Administration is putting us in harm’s way. Cutting hundreds of millions of dollars isn’t just illegal — it’s also reckless," Platkin said in a statement.

New Jersey joins 22 other states and the District of Columbia in filing the lawsuit against the agency and HHS Secretary Robert F. Kennedy Jr.

The lawsuit argues the cuts are illegal, and that the federal government did not provide “rational basis” or facts to support them. The attorneys general say it will result in “serious harm to public health” and put states “at greater risk for future pandemics and the spread of otherwise preventable disease and cutting off vital public health services.”

The lawsuit asks the court to immediately stop the Trump administration from rescinding the money allocated by Congress during the pandemic and mostly used for COVID-related efforts such as testing and vaccination. The money also went to addiction and mental health programs.

“Stripping our state of $350 million in Congressionally-authorized funding violates the law, plain and simple," Platkin said. "We are standing up for our residents and for public health with this lawsuit, and we will keep fighting to get this critical funding back.”

The U.S. Health and Human Services Department, which began serving employees dismissal notices on Tuesday in what’s expected to total 10,000 layoffs, told The Associated Press it does not comment on ongoing litigation.

HHS spokesman Andrew Nixon pointed to the agency's statement from last week, when the decision to claw back the money was announced. The HHS said then that it “will no longer waste billions of taxpayer dollars responding to a non-existent pandemic that Americans moved on from years ago.”

Meanwhile, the Garden State is also bracing for possible cuts to Medicaid after the U.S. House of Representatives passed a spending bill in February that calls for $2 trillion in cuts. While the bill doesn’t specifically target Medicaid, it directs the House Energy and Commerce Committee — which oversees Medicaid — to cut $880 billion over the next 10 years.

Last week, Gov. Phil Murphy held a roundtable event with New Jersey residents whose lives would be negatively impacted by potential federal funding cuts to Medicaid. According to Murphy, the state could lose as much as $10 billion in funding for NJ FamilyCare, which provides coverage to 1.8 million residents.

Health care services provided by NJ FamilyCare include doctor visits, eyeglasses, hospitalization, lab tests, X-rays, prescriptions, regular check-ups, mental health, dental, preventive screenings, autism services, community doula services and help with personal care needs.

“The proposed Medicaid cuts by Congressional leadership are deeply alarming and completely unacceptable," Murphy said. "For families across New Jersey, Medicaid is a lifeline offering access to essential medical services and transformational community-based supports."

The Associated Press contributed to this report.