Policies & Analysis

A group of municipalities and a municipal employees’ union filed suit against the Department of Health and Human Services (HHS) and the Centers for Disease Control and Prevention (CDC), challenging the abrupt termination of over $11 billion in federal grants designated for outbreak prevention and COVID-19 response programs. The plaintiffs contend that the agencies failed to follow statutory requirements that mandate evaluating each grant recipient individually for any alleged violations of federal law or the Constitution before rescinding funding. Instead, the agencies canceled the grants collectively without identifying any specific legal violations by recipients. The plaintiffs assert that the agencies’ actions violated the separation of powers, the Spending Clause, and the Administrative Procedure Act. They sought declaratory relief, reinstatement of the terminated grants, resumption of normal program operations, and attorneys’ fees.