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February 6, 2025policy changehealthcare policyfederal grantsrural healthexecutive authorityhealthcarefederalismexecutive power

OMB Memo Halts HHS Funding to 1,400 Rural Health Clinics

An Office of Management and Budget memo directed the Department of Health and Human Services to freeze disbursements to approximately 1,400 federally qualified health centers and rural health clinics pending a review of grant compliance with executive orders on DEI and gender ideology. The freeze threatened immediate disruption to primary care for an estimated 30 million low-income patients. A federal judge issued a temporary restraining order within 48 hours.