Alliance Alert: New York leaders are fighting back against recent federal cuts to service funding. In response to the Trump administration’s decision to rescind $400 million in health and behavioral health funding, Attorney General Letitia James—joined by 23 other state attorneys general—has filed suit to stop these devastating cuts.
These funds support essential services provided by the Department of Health, Office of Mental Health, and OASAS, as well as local organizations tackling food insecurity, maternal health, LGBTQ+ and immigrant health, and more. Cuts have already triggered layoffs and service shutdowns, with far-reaching impacts across the state.
We applaud this legal action and stand with all those working to protect the life-saving programs New Yorkers depend on. At a time when the need for mental health support and substance use services, among other health services, is growing, these cuts only reverse efforts to fix a struggling system.
The Alliance will continue to push for restored funding and investments in services that support all New Yorkers. Read below for more.
New York Sues the Trump Administration Over $400M in HHS Cuts to the State
By Katelyn Cordero | Politico | April 1, 2025
ALBANY, New York — New York Attorney General Letitia James and 23 other attorneys general are suing the federal government to restore $400 million in funding that the U.S. Department of Health and Human Services clawed back from the state last week.
James is joining a coalition of prosecutors led by Colorado Attorney General Phil Weiser who contends the termination of $11.4 billion in funding from the Centers for Disease Control and Prevention as well as $1 billion from the Substance Abuse and Mental Health Services Administration will lead to a breakdown of the country’s health system.
“The Trump administration’s illegal and irresponsible decision to claw back life-saving health funding is an attack on the well-being of millions of Americans,” James said in a statement. “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.”
Why this matters: New York stands to lose $400 million in grant funding provided to the state and New York City. The state Department of Health, Office of Mental Health and Office of Addiction Services and Supports are slated to lose a total of $300 million, while the city Department of Health and Mental Hygiene stands to lose $100 million due to the federal cuts.
The austerity has already triggered layoffs; 23 public health employees in New York have lost their jobs as a result of the cuts with more layoffs expected, according to James’ office. The cuts impacted more than 200 local organizations that provide services to tackle food insecurity, mental health issues and maternal health.
In addition, the state Department of Health has ceased its efforts aimed at addressing health disparities as well as programs focused on immigrant and LGBTQ+ health, the attorney general’s office said. The cuts also impact resources for school immunization efforts.
What’s next: The coalition is seeking to restore funding they claim the federal government had no basis to rescind. The funding was allocated to states by Congress, and the attorneys general contend in their lawsuit that efforts to pull that funding undermine Congress’ constitutional power of the purse.