New Jersey Faces $350M Health Cut Amid Lawsuit
New Jersey stands to lose $350 million in federal funding for critical health programs that track infectious diseases, provide mental health services, and combat addiction, as part of a larger $11.4 billion funding clawback by the Trump administration. The cuts are now being challenged in court by a coalition of 23 states seeking to block what they describe as an “illegal” action.
Gov. Phil Murphy warned that the funding reduction would create “an unfillable void in funding that will have disastrous ramifications for our most vulnerable neighbors,” according to NorthJersey.com. The governor indicated that New Jersey may join other states in litigation against the administration.
The U.S. Department of Health and Human Services (HHS), led by Secretary Robert F. Kennedy Jr., has justified the cuts by claiming they target unnecessary COVID-19 programs. “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 agency stated.
Beyond COVID: Critical Programs at Risk
State officials dispute the administration’s characterization, emphasizing that the funding supports a much broader range of public health initiatives. In New Jersey, the money has been essential for tracking influenza, RSV, measles, tuberculosis, and bird flu outbreaks over the past year.
The funding has also bolstered the state’s response to the opioid crisis, helping provide addiction treatment and mental health counseling. These efforts have shown promising results, with New Jersey’s overdose deaths dropping from 3,171 in 2022 to 2,816 in 2023.
“It will make it harder for our state to combat the deadly threat of fentanyl, which the Trump administration has repeatedly claimed as a priority,” Murphy stated.
This week, the Trump Administration ripped away $350 million in funding for public health, mental health, and addiction services in New Jersey.
— Governor Phil Murphy (@GovMurphy) March 27, 2025
We will do everything we can to restore this funding — including taking legal action — so we can keep New Jerseyans safe and healthy. pic.twitter.com/uQnYjpDXjr
Part of a Larger Health Funding Crisis
The cuts to state programs come as New Jersey already braces for significant reductions to the $14 billion it receives from the federal government for Medicaid, which provides healthcare for low-income residents and funds the majority of nursing home care in the state.
Additionally, New Jersey scientists face potential losses from the more than $400 million in annual medical research grants from the National Institutes of Health due to federal budget cuts.
The funding reductions coincide with massive layoffs at federal health agencies. According to Associated Press, approximately 10,000 workers at HHS are expected to lose their jobs, including 3,500 at the Food and Drug Administration, 2,400 at the Centers for Disease Control and Prevention, and 1,200 at the National Institutes of Health.
States Unite in Legal Challenge
On Tuesday, attorneys general from 23 states filed a lawsuit in federal court in Rhode Island challenging the administration’s authority to rescind the funding. The coalition includes New York Attorney General Letitia James, Colorado Attorney General Phil Weiser, and the District of Columbia, as well as the governors of Kentucky and Pennsylvania.
The lawsuit argues that the cuts lack a “rational basis” and will result in “serious harm to public health,” putting states “at greater risk for future pandemics and the spread of otherwise preventable disease.” It seeks an immediate injunction to prevent the administration from clawing back the money.
“Slashing this funding now will reverse our progress on the opioid crisis, throw our mental health systems into chaos, and leave hospitals struggling to care for patients,” James said in a news release.
Nationwide Impact
Other states face similarly devastating cuts. California could lose almost $1 billion supporting substance use disorder prevention, vaccination campaigns, and infectious disease monitoring. North Carolina estimates losses of $230 million, affecting dozens of local health departments, hospital systems, universities, and rural health centers.
“There are legal ways to improve how tax dollars are used, but this wasn’t one of them,” North Carolina Attorney General Jeff Jackson stated. “Immediately halting critical health care programs across the state without legal authority isn’t just wrong — it puts lives at risk.”
The impact extends beyond state health departments. More than two dozen COVID-related research grants funded by the National Institutes of Health have already been cancelled, and CDC data shows that COVID-19 continues to claim 411 lives each week on average.
“This decision is not just a loss of jobs — it is a direct threat to the approval of new medicines, our response to immediate public health crises, and the future of American biomedical research and scientific innovation,” warned Stephen C. Jameson, president of the American Association of Immunologists.
