'So unexpected': MAGA state agencies left reeling as Trump admin yanks health funds

Some North Dakota health agencies are trying to adjust to the sudden loss of federal funding.

The North Dakota Department of Health and Human Services learned last week it lost about $3.2 million in federal funding for substance-use treatment and mental health programs after block grants were rescinded by a federal agency.

In an evening email on March 24, the federal Substance Abuse and Mental Health Services Administration told HHS that the COVID-19 pandemic-era grants were taken back in accordance with President Donald Trump’s executive order empowering the Elon Musk-led Department of Government Efficiency to cut costs.

“These grants were issued for a limited purpose: To ameliorate the effects of the pandemic,” the email stated. “The end of the pandemic provides cause to terminate COVID-related grants. Now that the pandemic is over, the grants are no longer necessary.

The grants were scheduled to expire Sept. 30.

Pam Sagness, executive director for the Behavioral Health Division for the Department of Health and Human Services, said in 2021 the department received the five block grants to target substance abuse prevention, treatment and mental health programming totaling about $9.5 million. The funding for these grants came from the Coronavirus Preparedness and Response Supplemental Appropriations Act and the American Rescue Plan Act of 2021.

Renae Moch, public health director for Bismarck-Burleigh Public Health, said the organization received $115,000 from HHS to develop plans for a 24/7, 365-day facility to focus on crisis response, mental health and addiction services, rather than treating patients in an emergency room.

“How we were notified and how this kind of went down has just been unbelievable,” Moch said.

She said she received a general notification from HHS last Tuesday morning that their block grant funding was going to be impacted, but she was still unclear about what that meant and what funding was being rescinded. She got a call back about 4:30 p.m. from the department, 45 minutes before she was to present and hopefully award funding from the grant during a Bismarck City Commission meeting.

“I had to kind of refocus and compose myself before going up to the meeting at 5:15 p.m.,” Moch said. The presentation and contract award were pulled from the agenda.

Sagness said 42 grantees statewide will lose federal funding.

“Our focus now is on ensuring that services continue by identifying alternative funding and working with providers to minimize disruptions,” Sagness said in a statement. “It’s important for North Dakotans to know that support remains in place. Anyone struggling should continue to reach out for help, including through (calling) 988 or their local behavioral health provider.”

The department received notice the grants were being terminated the day the funding was rescinded, Sagness said.

Holly Scott, a spokesperson for Fargo Cass Public Health, said its state partners confirmed that its funding for social detox center operations will run out after September.

“Our leadership team is currently working to determine the impacts of these changes, while also reviewing alternate sources of funding to assure long-term sustainability,” Scott said in an email.

Other organizations impacted by the loss of block grant funding:

Connect Us Therapy, Williston – $50,000 for crisis response and law enforcement mental health supportCorner Post Counseling, Mandan – $30,000 for crisis response and law enforcement mental health supportPublic Health & Tribes, 23 contracts – $200,000 for substance-use preventionFlint Communications, Fargo – $824,951 for Parents Lead, opioid messaging initiatives and marketing statewideBeMoreColorful, Fargo – $160,000 for behavioral health workforce tools

“All of the planning and all of the work that has gone into it and now, here we are,” Moch said.

She said they don’t want to abandon the project, but the organization is going to have to come up with alternate funding sources.

“We will be losing months,” Moch said. She’s also hopeful a new grant or funding source can be identified before the city and county begin their budget discussions over the summer.

Separate federal funding through the Health Equity Immunization Grant was also rescinded for Bismarck-Burleigh Public Health, she said. That funding impacted the organization’s ability to provide free COVID-19 tests and a portion of the salary for a vaccine specialist.

“It’s all related to the same decision,” Moch said. She added that arguments about the pandemic being over and the funding not being needed don’t hold water because they are still working through the impacts of COVID-19. That funding was supposed to continue until 2026, Moch said.

“The abrupt impacts on us at the local level is what is just so unexpected and so we’re just really trying to scramble now because there was no notice,” she said.

In an interview with the North Dakota Monitor, Gov. Kelly Armstrong said the COVID-19 pandemic has been over for three years, but he has been in contact with HHS to get a handle on the impacts to state health providers.

“I’m glad it happened during the legislative session so we can figure out how we readjust our budget and figure out how to finish off the session,” Armstrong said.

In a news release, the Department of Health and Human Services said it was evaluating funding options for the loss in federal block grants and will collaborate with other state agencies, organizations and private partners to address priority areas. The department said it will provide updates as more information becomes available.