Rhode Island health department warns $31.2M federal grant recapture could cut staff, programs

The Department of Health told the House Finance Subcommittee on Human Services on Wednesday that the governor’s recommended FY2026 budget of about $292 million relies on federal grants for roughly 52% of its funding and that federal authorities have notified the state this morning about the potential recapture of roughly $31.2 million in pandemic-era grant funds.

The recapture notice, department officials said, would affect line items in the current fiscal year and is likely to reduce staffing, contractor work and community contracts tied to COVID-related federal awards. "The department was notified today that remaining COVID-nineteen grant funds are targeted for federal recapture," the department’s budget presenter Chantal said during the briefing. Later the department director described the notification as planning by the federal government and said the funds were intended to help prepare for future pandemics.

Why it matters: the department told lawmakers the FY26 recommendation of $292 million is $64 million less than enacted budgeted spending partly because one-time construction costs for a new health laboratory drop out of the base. But officials warned that an…