The Centers for Disease Control and Prevention (CDC) has been struggling with delayed funding, leaving health departments across the country in a precarious financial situation. According to two CDC staff members, the agency is operating with just 30-day increments of funding, effectively “impounding” its own resources.
Most state health departments rely heavily on federal grants from the CDC for funding, with many receiving over 90% of their budget from federal sources. However, this year’s delays have left these departments without notice of award or payment, forcing them to incur costs and risk being unable to reimburse themselves.
Grants related to HIV prevention work in several states expired at the end of May, causing abrupt disruptions to services such as testing and hotline operations. In Ohio, a state health department had to halt its HIV testing program due to lack of funding.
The situation has become dire for some health departments, with staff being laid off or having to take on more workload due to delayed funding. Experts warn that this can lead to reduced services and potentially even increased transmission rates of diseases like HIV and syphilis.
CDC officials are running out of time to disburse funds before the end of September, leaving many projects in jeopardy. The agency’s senior leaders blame HHS for the delays, claiming it amounts to intentional “impounding” of resources.
State health departments are facing uncertainty about future funding, with some expressing frustration at the lack of communication from CDC officials. Experts emphasize that reliable funding is essential for public health work to function effectively.
Source: https://www.npr.org/sections/shots-health-news/2025/06/28/nx-s1-5442689/cdc-trump-layoffs-public-health-rescission