1 week Ago
A federal judge in Rhode Island has granted a temporary injunction against the Trump administration's demand that states return $11 billion in unspent COVID-19 pandemic era grants, including $80 million in New Hampshire. New Hampshire didn’t join in this lawsuit , which was filed by attorney generals from 23 Democrat-leaning states and the District of Columbia. A senior adviser to Gov.
Kelly Ayotte said if the lawsuit does survive many upcoming hurdles, all states including New Hampshire will be spared from the Department of Health and Human Services' move to “claw back” these unspent COVID era dollars. U.S.
District Judge Mary McElroy, who was appointed by Trump but first nominated by former President Barack Obama, said that the states made a "strong case" for success and indicated she would formally grant a temporary restraining order to pause the cuts. A written ruling is expected soon. The injunction means the federal judge believes but can’t guarantee that the suit from these states will succeed in the coming months.
The Trump administration’s Justice Department will surely appeal this decision and a final resolution of this matter is likely months away. Prosecutors from the states that filed the suit celebrated the news that they could receive a final reprieve from having to return the unspent money. States had been planning to use this money for substance abuse and mental health programs and governors were initially told they had until the end of 2026 to spend them.
But HHS, under new Secretary Robert Kennedy Jr., decided that because the pandemic is over, all states had 30 days to return the money. “The COVID-19 pandemic is over, and HHS will no longer waste billions of taxpayer dollars responding to a non-existent pandemic that Americans moved on from years ago.
HHS is prioritizing funding projects that will deliver on President Trump’s mandate to address our chronic disease epidemic and Make America Healthy Again,” the agency said in a statement last week. Ayotte told reporters last month that Trump’s decision did not appear to be reversible. "As I understand it, at the federal level, they are saying these were pandemic funds, they were only meant to be temporary, and so the pandemic has concluded, and we're going to claw them back," Ayotte said.
Ayotte did say she disagreed with the decision to cut off the funding so abruptly. "I mean, of course, I think it is much easier for states when, if a resource has been appropriated for a period, that at least we fulfill that period," she said. Senior adviser John Corbett said Ayotte instructed Attorney General John Formella to explore administrative appeals of this decision.
“Governor Ayotte is focused on delivering for New Hampshire and protecting critical programs for Granite Staters. In addition to directly interfacing with the White House, the state is in the process of filing an administrative appeal with HHS to restore this funding,” Corbett said. “The governor will always defend New Hampshire’s best interests.
” But a progressive special interest group said Ayotte failed to support the state. “While 23 other governors took action to protect their states and win back funding, Ayotte sat on her hands and left $80 million on the table for no reason,” said Amplify NH Executive Director Ryan Mahoney. “She’s not asleep at the wheel — she is choosing to driving us straight into a ditch.
” But Ayotte administration officials noted McElroy’s decision orders HHS to “immediately cease withholding any funds” and “process all payments as if the public health terminations had not been issued.” They said this means the injunction affects all $11 billion including the $80 million threat for New Hampshire. Lawyers for the plaintiff states argued that while the money was distributed during the pandemic it was not intended solely for COVID-19 response.
They maintained in their suit it was to support the public health system for the long term. New Hampshire Health and Human Services Commissioner Lori Weaver said her agency was reviewing how the $80 million cut could affect services. This week, the New Hampshire House of Representatives will be voting on a proposed two-year state budget Thursday that doesn’t account for the potential cut.
The state’s all-Democratic congressional delegation penned a letter Monday urging Kennedy to reverse course. “Clawing back these funds does nothing to improve our state’s public health system,” they wrote . “Instead, you are needlessly putting our communities’ health at risk and jeopardizing our constituents’ livelihoods and their organizations.
We urge you to reinstate this vital funding immediately.” [email protected].
