Thursday’s announcement from HHS on the reorganization of the agency and the merger of AHRQ with ASPE is the central topic of today’s Situation Report. We also offer guidance to affected researchers, share an update on state and local health funding and an opportunity to share your story with media. The AcademyHealth Stand with AHRQ toolkit has also been updated for the field’s use to advocate for AHRQ.
In today’s issue:
- AcademyHealth Decries Lack of Transparency Around the HHS Reorganization Announcement
- Guidance for Health Services Researchers Amid HHS Reorganization
- Trump Administration Revokes State and Local Health Funding
- FDA, NIH Leadership Confirmed
- Opportunities to Share Your Story with Press
AcademyHealth Decries Lack of Transparency Around the HHS Reorganization Announcement
AcademyHealth is raising urgent concerns about the transparency and implications of the recent HHS reorganization announced by Secretary Robert F. Kennedy, Jr. The merger of the AHRQ with ASPE could jeopardize essential health research funding and patient care initiatives. AcademyHealth calls for immediate clarity and action to preserve AHRQ's critical role. Read the full statement here and join us in our advocacy with our updated toolkit here.
Guidance for Health Services Researchers Amid HHS Reorganization
The recent reorganization of the U.S. Department of Health and Human Services (HHS) is expected to impact funding for federal research agencies, potentially affecting ongoing and future grants and contracts. If you are an HHS employee seeking information on current or future workforce restructuring initiatives, it is advisable to consult directly with your agency's Human Resources department or monitor official HHS communications for the most accurate and up-to-date information. While the full consequences remain uncertain, health services researchers should take proactive steps to assess risks and prepare for potential disruptions.
Immediate Steps to Manage Uncertainty
- Review Grant Terms and Conditions – Examine your grant agreement to understand provisions related to funding continuity, modifications, or early termination.
- Stay in Contact with Program Officers – Proactively engage with your funding agency’s program officers or grant administrators for updates on how the reorganization may impact your funding.
- Monitor Policy Changes – Stay informed on official announcements from HHS, NIH, CMS, and other agencies that may affect research priorities and funding streams.
- Ensure Timely Drawdowns and Invoicing – Confirm that all allowable funds have been drawn down or invoiced on schedule to avoid disruptions in case of administrative slowdowns.
- Review all costs (labor and otherwise) for activities performed since the last drawdown/invoice to ensure accuracy and completeness.
- Confirm that funding for subcontracts and other partners is appropriately obligated.
- Be prepared to submit termination terms that maximize funding recovery if your grant or contract is terminated early.
- Document and Report Progress – Maintain clear records of project milestones, expenditures, and deliverables to ensure compliance and strengthen any future funding requests.
Planning for Potential Funding Losses
Even if you haven’t received official word about cuts, it’s wise to prepare for different scenarios:
- Assess Your Financial Resilience – Review your funding timeline, any carryover funds, and institutional support options to determine how long you can sustain your work if funding is reduced.
- Identify Contingency Plans – Explore alternative funding sources, including private foundations, professional societies, and state-level grants.
- Prioritize Key Project Milestones – If resources become constrained, focus on the most critical components of your research to preserve impact.
- Engage Stakeholders Early – If funding losses could affect collaborators, staff, or trainees, start discussions now about potential adjustments.
- Understand Termination Procedures – If your grant or contract is subject to early termination, familiarize yourself with the relevant regulations:
- Contracts: FAR Part 49 - Termination of Contracts
- Cooperative Agreements & Grants: 2 CFR §200.340-346 - Post Federal Award Requirements
Trump Administration Revokes State and Local Health Funding
The Department of Health and Human Services (HHS) has abruptly canceled $11.4 billion in federal grants that state and local health departments were using to track infectious diseases, monitor health disparities, and provide vaccinations and mental health services. The stop-work notices, issued late Monday, cite the official end of the COVID-19 pandemic as justification for terminating the funding.
While HHS claims the move will refocus efforts on chronic disease and "Make America Healthy Again," public health officials warn the cuts could disrupt essential services, including responses to measles outbreaks and upgrades to outdated health data systems. HHS has not clarified how it plans to recover already-allocated funds.
FDA, NIH Leadership Confirmed
The Senate on Tuesday confirmed Drs. Jay Bhattacharya to lead the NIH and Marty Makary to lead the FDA.
Opportunities to Share Your Story with Press
Several media outlets are soliciting stories of how HHS reorganization is affecting people, including KFF Health News, STAT News, and ProPublica.
Previous Updates
This is the latest in a series of Situation Report updates from AcademyHealth. You can find prior issues here.
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