HHS Lays Off 10,000 Workers, Cuts Essential Grants

Apr. 5, 2025, 6:00 am ET

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  • The U.S. Department of Health and Human Services (HHS) is undergoing massive layoffs, affecting 10,000 workers.
  • Federal grant cuts to states and localities are exacerbating the crisis in public health programs.
  • Agencies like the CDC, FDA, and NIH are severely impacted, compromising critical health services.

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Essential Context

The recent layoffs at HHS, coupled with the cancellation of $12 billion in federal grants, have plunged public health programs into chaos. This move has been criticized for prioritizing tax cuts for billionaires over public health.

Core Players

  • U.S. Department of Health and Human Services (HHS)
  • Centers for Disease Control and Prevention (CDC)
  • Food and Drug Administration (FDA)
  • National Institutes of Health (NIH)
  • American Federation of State, County and Municipal Employees (AFSCME)

Key Numbers

  • 10,000 – Number of HHS workers being laid off
  • $12 billion – Amount of federal grants canceled
  • 25% – Percentage of Minnesota’s Department of Health budget cut due to federal funding reductions
  • 900 – Number of employees at NIOSH expected to lose their jobs
  • 50% – Percentage of staff at the Administration for Community Living being fired

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The Catalyst

The layoffs and grant cuts were initiated by the current administration, which has been criticized for its handling of public health issues. This move follows a broader trend of workforce reductions and budget cuts in various federal agencies.

“These RIFs will have a devastating impact on the programs ACL administers and the people who benefit from them,” said Alison Barkoff, a former leader at the Administration for Community Living.

Inside Forces

The HHS layoffs affect multiple critical agencies, including the CDC, FDA, NIH, and the National Institute of Occupational Safety and Health (NIOSH). The CDC’s ability to track infectious diseases has been severely hampered, while the FDA’s review of new drugs and medical devices has been disrupted.

The Administration for Children and Families (ACF) is also being significantly reduced, with about half of its staff being fired and several offices closed.

Power Dynamics

The decision to lay off HHS workers and cut grants has been met with strong opposition from public service unions and health advocacy groups. AFSCME has launched a campaign to fight back against these cuts, arguing they threaten the safety and well-being of communities.

State and local governments are also feeling the impact, with many facing significant budget shortfalls and potential layoffs of their own public service workers.

Outside Impact

The broader implications of these layoffs and grant cuts are far-reaching. Public health programs, including those for behavioral health services and infectious disease tracking, are at risk. States like Minnesota, Washington, and New Jersey are experiencing significant funding losses, which will impact their ability to combat health crises such as the opioid epidemic.

Disability programs nationwide are also under threat, with the dismantling of the Administration for Community Living likely to disrupt funding and services for people with disabilities.

Future Forces

The long-term effects of these cuts will likely be felt for years to come. As funding for critical health services dwindles, the capacity of states and localities to respond to health emergencies will be compromised.

Advocacy groups and public service unions are calling for immediate action to reverse these cuts and ensure the continued funding of essential health programs.

Data Points

  • April 3, 2025: HHS announces layoffs and grant cuts.
  • April 5, 2025: Widespread chaos reported among HHS agencies and state health departments.
  • 82,000 to 62,000: Projected reduction in HHS full-time employees.
  • $350 million: Amount of federal funding lost by New Jersey’s Department of Health and Human Services.
  • 2,500: Number of community organizations funded by the Administration for Community Living.

The current layoffs and grant cuts at HHS mark a significant shift in the priorities of the federal government, one that could have lasting and far-reaching consequences for public health in the United States.