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Nearly $300 million in federal CDC funding cut; New Jersey health commissioner warns local public health will feel immediate effects
Summary
Commissioner Dr. Baston told the New Jersey Senate Budget and Appropriations Committee that roughly $300 million in CDC funding to New Jersey was cut immediately, affecting about 93% of local health departments and pausing many federal grant invoices as of March 24.
Dr. Baston, Commissioner of the New Jersey Department of Health, told the Senate Budget and Appropriations Committee that nearly $300 million in federal support from the Centers for Disease Control and Prevention (CDC) was cut off immediately, and that local health departments statewide depended on much of that funding.
The commissioner said the loss of funds ranged across local public health grants and support for the state laboratory. "Just days ago, we received notice that nearly $300,000,000 in federal support from the CDC was being cut off immediately," Dr. Baston said. "About 93% of local health departments were depending on some of that funding."
Why it matters: Committee members pressed the department for specifics because the cuts arrived while many local agencies were mid‑implementation on prevention, testing, and community health projects. Senator Shelley sought clarification about whether the federal action represented a clawback of unspent money; Dr. Baston replied that only funds already spent could be invoiced and that encumbered but unspent awards had been stopped as of March 24.
The committee and the department discussed next steps. Dr. Baston said the department is communicating closely with counties and municipalities and will coordinate on prioritization and contingency planning, but she emphasized legal and practical limits: ongoing litigation and federal decisions will constrain immediate state responses. "We are following very closely, we're in close communication with them about the work, and we're gonna have to work together to make decisions that are tough decisions during this time, depending on what happens in the courts," she said.
Committee members asked for data the department said it can provide: a list of impacted awardees, award amounts, and timelines for when awards would have expired. The commissioner said the department can supply detailed tracking spreadsheets for grants routed through the Department of Health.
Context and next steps: The department indicated some grant funds had multi‑year spending windows extending into 2026 and 2027, so not all money would have been expended in a single fiscal year. Senators pressed for a breakdown of which programs and counties would be most affected and requested the department produce a material list of impacted agencies and the amounts tied to each award.
The department will continue to provide information to the committee and work with the Legislature on potential state actions if federal funding remains withdrawn.
