Vermont to Lose Millions as Part of Federal Grant Cuts
Mar 27, 2025
Vermont expects to lose nearly $7 million in federal funding as a result of the Trump administration's move this week to cancel billions of dollars in federal grants awarded to state and local health departments. The funding, authorized by Congress as part of COVID-19 relief bills, had been
scheduled to run through September 2025. But the U.S. Department of Health and Human Services began notifying local health departments that it would instead be rescinded immediately as President Donald Trump and Elon Musk slash federal spending. "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," the federal agency said in a statement this week. Vermont's Agency of Human Services was unable to provide someone for an interview and said it was still assessing the impact of the cuts. But in a written statement, the agency warned that cuts would have real consequences. For the state Department of Health, the cuts will terminate roughly $7 million in federal grants that have been used to track infectious disease, improve access to vaccines and address health disparities. The Vermont Department of Mental Health also expects to lose hundreds of thousands of dollars as a result of now-discontinued grants from the Substance Abuse and Mental Health Services Administration. "These funds have supported important mental health services, including community-based support, crisis response, and access to care for vulnerable Vermonters," the agency's statement read. Among the impacted programs are those that help young people get early treatment for psychosis. The Trump administration also announced on Thursday that it planned to drastically reduce the staff of the U.S. Health and Human Services Department. Some 10,000 workers were expected to be laid off on top of 10,000 others who have accepted early retirements. The grant cancellations will likely lead to legal challenges. But if they're upheld, "there is no doubt that they will negatively impact public health in our state,” the Vermont Agency of Human Services said in its statement… ...read more read less