Are CDC Grant Delays Causing Layoffs? Discover Where Our Funding Is Stuck!

Health departments across the U.S. are facing a troubling issue: funding from the Centers for Disease Control and Prevention (CDC) is delayed. This funding is crucial for local health initiatives, but many states report that they haven’t received their expected grants on time.

Typically, the CDC distributes federal funds to state and local health agencies, which then support local health work. However, CDC staff have indicated that the agency has not received its complete budget for the 2025 fiscal year, leading to significant delays. Some health officials describe the situation as “funding impoundment,” where essential funds are stuck and not being released.

Dr. Scott Harris, who leads Alabama’s health department, notes that federal funding forms over two-thirds of their budget. He highlights how critical timely funding is, saying, “Without a notice of award, we cannot move forward.” He also mentioned that fellow state health departments are experiencing similar issues, with many programs at risk.

The impact of these delays is already being felt. For instance, some states have seen interruptions in essential services. In Ohio, the HIV hotline was abruptly halted when funds expired. Likewise, the San Antonio AIDS Foundation had to pause its testing services due to uncertainty around funding.

This chaotic funding situation may stem from administrative delays after a new budget was passed. The process of distributing funding typically takes 45 to 60 days, but this year, significant delays have left health departments scrambling. One CDC senior leader described receiving funding in “30-day increments,” comparing it to getting money “with an eyedropper.”

Experts warn that if this delay continues, health programs might be forced to shut down entirely, affecting services critical for community health. Without the funds, essential health staff, such as disease investigation specialists, face layoffs, which could result in more significant public health risks.

Recent statistics underline the extent of the issue: According to an internal survey, nearly 70% of state health departments reported funding delays this year. The ongoing uncertainty has left health officials anxious about how to plan their services and continue supporting their communities.

As states wait for their grants, the frustration grows. Many leaders echo the concern that these delays could have long-term effects on public health, especially as they struggle to manage programs that directly impact health outcomes. The need for timely funding is more pressing than ever, as effective public health actions rely on it.



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