The Caledonian Record – May 5, 2025
CONCORD — The abrupt termination of more than $81 million in federal pandemic-related grants has created unexpected service gaps in New Hampshire’s public health and social service infrastructure, according to a new report from the New Hampshire Fiscal Policy Institute. The NHFPI report, released this week, details how funding from multiple federal COVID-19 relief programs — originally set to continue through 2026 — was suddenly ended earlier this year, leaving state agencies and community partners scrambling to fill in the gaps. The money had supported a wide range of initiatives, including immunizations, disease surveillance, health equity efforts, and mental health programs.
“The early end to these grants removed critical resources that were already allocated or being used to sustain public health infrastructure developed during the pandemic,” the NHFPI stated. On March 24, New Hampshire’s Department of Health and Human Services (DHHS) received notice from the U.S. Department of Health and Human Services that several grants were being terminated “for cause,” the report says. While federal officials referenced the formal end of the COVID-19 public health emergency, the termination notice did not specify other reasons.
The terminated grants were part of broader emergency funding measures passed by Congress during the pandemic, including the Coronavirus Response and Relief Supplemental Appropriations Act of 2020 and the American Rescue Plan Act of 2021. Funding was administered through agencies such as the Centers for Disease Control and Prevention and the Substance Abuse and Mental Health Services Administration. The largest loss came from the Epidemiology and Laboratory Capacity (ELC) program, which supported efforts to detect and respond to infectious disease outbreaks. Approximately $51.1 million of ELC funding was rescinded, including $37.7 million from the “Enhancing Detection Expansion” component that supported expanded lab testing and public health data systems.
An additional $20.7 million in immunization grant funding was also cut. These grants have helped expand vaccine outreach, data tracking, and local health partnerships. Another $5 million earmarked for health equity initiatives — designed to address disparities in underserved communities — was also lost. Mental health and substance use services saw a $4.4 million reduction, affecting programs meant to improve behavioral health infrastructure, staffing, and access to services.
State officials have appealed the federal government’s decision to terminate the grants. In the meantime, DHHS is reassessing program budgets and considering which efforts can continue with existing resources. The NHFPI report warns that without replacement funding, the early termination of these grants could hinder New Hampshire’s ability to manage future public health challenges. “This sudden loss of funds not only disrupts current programming but also undermines the investments made to improve long-term public health capacity,” the report said.
New Hampshire is not alone. The report notes that federal pandemic-related aid is winding down nationwide, often abruptly and without transition plans. In April, the U.S. Department of Justice canceled more than $800 million in grants affecting hundreds of organizations that work in public safety and victim support. Many of those groups, like their public health counterparts, had made long-term plans based on the availability of funds through 2026.
Other sectors in New Hampshire are also bracing for the consequences of expiring federal aid. Child care providers, for example, are expected to feel significant pressure as one-time pandemic-era investments run out by September 30. New Hampshire received about $146 million in temporary federal child care funding since 2020, much of which has supported staffing, safety improvements, and subsidies for low-income families. According to the NHFPI, the cumulative loss of federal funds across sectors threatens to unravel progress made during the pandemic, especially for vulnerable populations.
The report urges state policymakers to assess current service levels and consider how to sustain critical programs without continued federal support. “The reliance on one-time federal investments highlights the importance of consistent and adequate state funding to meet the ongoing needs of Granite Staters,” the report concludes.