Oregon Health Authority sees $117M in abrupt federal funding cuts

PORTLAND, Ore. (KOIN) – Amid efforts by the Trump administration to slash federal spending, the Oregon Health Authority announced Friday that around $117 million has been abruptly cut from the state agency.

According to OHA, the Department of Health and Human Services — through the Centers for Disease Control and Prevention and the Substance Abuse and Mental Health Services Administration — “abruptly terminated” the funding, which was meant to support a variety of programs including substance use treatment, immunizations and virus testing.

Those funding cuts will be immediately felt in every Oregon county and all nine federally recognized tribal communities, state health officials said — noting the funding cuts occurred at least one year before some of the federal grants were scheduled to end.

The funding included five grants for OHA’s Behavioral Health Division, which helped create the 988 crisis line, and were supposed to help fill gaps in community substance use treatment, prevention and recovery services – with a focus on communities of color, young adults and veterans.

Another grant established an Equity Office in OHA’s Public Health Division and provided training to rural healthcare providers, tribes, local public health departments and community organizations.

Immunization grants were also slashed, according to OHA, noting these grants supported vaccine-preventable disease work, including funding for clinics in local and tribal communities where COVID-19 and other vaccines are offered, along with training to keep health care providers up to date and education for community partners on vaccinations.

Other grants pulled from OHA supported growing laboratory capacity, modernizing data systems, along with increased surveillance, testing and response times to communicable diseases caused by respiratory viruses.

OHA notified local public health authorities about the cut funding on Friday, adding that the state health agency will continue to evaluate the impacts of the cut funds “including whether they are legal, and remains committed to improving the lifelong health of all people in Oregon.”

Now, Portland metro-area counties tell KOIN 6 News they are monitoring how the funding cuts will impact their communities.

“Multnomah County is working to determine the scope and impact of reported federal cuts on County services,” a spokesperson for Multnomah County told KOIN 6 News on Friday. “Once more information becomes available, the Chair’s Office, COO’s Office, and government relations staff will determine the County’s next steps.”

In Clackamas County, officials said they expect to return “nominal” funding.

“The Public Health Division has spent the bulk of its CDC COVID-related funding provided through our funding agreements with OHA. We anticipate any funding we may have to return to be nominal,” Clackamas County officials said. “It’s also important to know that other than a notification from the Oregon Health Authority yesterday specific to COVID and (American Rescue Plan Act) funds ceasing immediately, Clackamas County is not aware of any other concrete notifications regarding federal funding reductions/elimination impacts. Also, the county has not yet had time to evaluate the fiscal impact of the COVID/ARPA notification and are waiting for program-specific communication from OHA.”

A spokesperson for Washington County said they are also monitoring the impacts of OHA’s announcement.

Oregon Senate Majority Leader Kayse Jama (D-NE Portland, Boring, and Damascus) issued a statement on Friday decrying the funding cuts.

“When Oregonians send their federal tax dollars to the IRS every spring, they expect to see that investment coming back to the state to advance our health, safety, and wellbeing,” Jama said. “Sudden and severe cuts put our progress in jeopardy.”

According to the Senate Majority Office, Oregonians already paid the federal government nearly $41 billion in income taxes in 2023.

“Grants like the ones halted this week allow states to build services around local needs,” Jama said. “In Oregon, they were filling critical gaps in support for veterans, young adults, people of color, rural health care providers, laboratory technicians and more. We all deserve to see that funding restored.”

In a statement to KOIN 6 News, a spokesperson for the Oregon Senate Republican caucus said, “The Oregon Health Authority wasn’t functioning well even with the funding it had. More money doesn’t fix mismanagement; it only enables it. Time and again, we’ve seen that simply throwing more money at agencies like OHA doesn’t lead to better outcomes, it leads to more waste. Instead of panicking over federal funding reductions, Democrats should focus on making government work better with the resources it has. Oregon taxpayers deserve a government that works, not just one that grows.”

The announcement from OHA comes amid a major overhaul at the United States Department of Health and Human Services.

As reported by The Associated Press, DHHS announced plans to lay off 10,000 workers and close agencies. The department is also embroiled in rumors it will cut $11 billion in public health funding for cities and counties.


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