Federal public health cuts could cost Texas $700 million

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New preliminary figures out Wednesday indicate Texas’ share of federal plans to clawback $11.4 billion in pandemic-era grants to states means Texas could face more than $700 million in public health funding cuts.

The number — the first dollar figure released about what Texas state and local public health agencies could lose — was announced by Kirk Cole, senior adviser to Texas Department of State Health Services Commissioner Dr. Jennifer Shuford, during an agency committee meeting.

Two weeks ago, the U.S. Department of Health and Human Services notified states it was putting an end to public health grants to states made during the COVID-19 pandemic. Many state and local agencies have spent most of the grant money that was set to expire this summer. But most of the recalled money includes grants that were not due to expire until mid-2026.

“It is money we knew was going to end but just not quite so soon,” said Cole at Wednesday’s DSHS Public Health Funding & Policy Committee meeting.

It’s not clear yet whether $700 million, given to the state by HHS, is a final cost number for Texas. A spokesperson for the state health agency says additional calculations have indicated that the number may be closer to $550 million.

Of that, about $147 million is the latest estimated cost to local public health agencies, Cole said.

Cole and others at the meeting noted how long awaited data projects, public health outreach and staffing are being impacted as a result of the cuts.

While the grants were designed to help with immunization efforts and other COVID-19-related health costs, state and local public health agencies were given leeway under the Biden administration to use the money for other public health efforts, including immunization for measles and efforts to provide better health care access for low-income Texans. It is not clear if the reductions would mean layoffs within the state health agency.

“We’re reviewing impact to staffing,” Cole said. “A lot of things to consider as we move forward.

DSHS’ annual budget is about $1 billion. About half of it comes from federal funds, Cole said.

Local public health departments are now scrambling to find a way to keep from laying off staff because of the federal cuts. Dr. Philip Huang, Dallas County’s public health director, said he has had to lay off 21 staffers as a result. Lisa Dick, Brownwood’s public health director, said she has had to eliminate five positions but reduced the loss to three by moving positions around and factoring in a retirement.

“It is difficult,” she said.

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