Funding delays have pushed several community health centers nationwide to close or cut back on staff, citing issues accessing federal funding.
The financial problems, the centers say, appear to stem from last week’s temporary domestic funding grant freeze and the implementation of new executive orders.
“We will do everything we can to keep our patients from experiencing the effects of the federal funding freeze, as it pertains to the delivery of health care,” said Erin Trapp, CEO of La Pine Community Health Center in La Pine, Ore., which has had to reduce its workforce because of the funding pause. “We believe this will be a temporary change and plan to restore our workforce soon.”
Many grant programs, including Head Start and Title X, continue to experience financial shortfalls despite an injunction issued against the freeze.
The community center funding issues come as Elon Musk’s Department of Government Efficiency has targeted programs, grants and even entire agencies across the administration that it believes are not an efficient use of government funding.
A White House spokesperson said the Department of Health and Human Services and the administration are aware of the problem, and that it isn’t related to DOGE. The system is up and running now, but some users are experiencing lags because of high volume of requests, which HHS is working to resolve, the spokesperson said.
Federally qualified health centers serve about 1 in 10 Americans, or 32.5 million individuals annually, and are a critical part of the social safety net caring for low-income people and children.
Amanda Pears Kelly, CEO at Advocates for Community Health, a membership organization of community health centers, said the issue is affecting health centers in Virginia, Maine, Nebraska, Illinois, Rhode Island and Michigan. Centers have been unable to access funding from the federal platform that allows organizations to access awarded grants. Other centers remain unaffected, adding to the confusion.
“While we don’t have an answer for the reasoning behind it, we do know that health centers cannot afford to wait, and it is critical that Congress and [the Health Resources and Services Administration] get to the bottom of it,” Kelly said. “We fear that more closures and furloughs are on the way.”
Federally qualified health centers, or FQHCs, offer preventive, dental and mental health care services and must serve all patients regardless of their ability to pay. They’re supported by both discretionary funding appropriated by Congress and mandatory funding required through the Community Health Center Fund.
On average, about 11 percent of health center funding comes from federal grants.
Most recently, Congress extended bipartisan funding in its December stopgap spending law, with discretionary funding extended through March 14 and mandatory funding through the Community Health Center Fund through March 31.
Amy Simmons Farber, a spokesperson for the National Association of Community Health Centers, said in an email that the organization is continuing to respond to the reports of delays in being able to access funds. The group is currently in Washington, D.C., for a forum and is “providing real-time guidance and support” to members.
“As critical primary care providers operating with minimal financial margins, CHCs require consistent, reliable funding to deliver vital primary care services and meet their communities’ healthcare,” she said in a written statement. “Our ongoing engagement with bipartisan Congressional leaders and the Trump Administration focuses on maintaining stable funding for the Health Center Program.”
The initial clinic closures were reported in Virginia by Virginia Public Media on Tuesday, stating that half of their FQHCs were still unable to access federal funding.
Since then, clinics in other states have reported similar problems and had to take cost-saving actions.
Congress
Twenty-two members of Congress wrote to acting Health and Human Services Secretary Dorothy Fink on Thursday citing concerns about the “significant delays” that health centers and other HRSA grantees have been experiencing.
The letter, led by Sens. Tim Kaine and Mark Warner, both Virginia Democrats, requests information about the status and total number of pending payments, how many payments have been denied and what the timeline for fixing the issue will be. The senators seek the information by Feb. 12.
Other lawmakers have expressed concern based on conversations with constituents.
Rep. Seth Magaziner, D-R.I., posted on social media that health centers in his state are also experiencing issues, calling it “dangerous and unacceptable.”
Magaziner’s office said late Thursday that the portal is back online but “many Rhode Island organizations continue to be cut off from federal funding they have been awarded, including West Bay Community Action, CCAP, and Tri-County Community Action, among others.”
“Donald Trump and Elon Musk must stop their illegal hold on vital funding that Rhode Islanders rely on,” he said.
Sen. Ruben Gallego, D-Ariz., also shared that he had met with community health centers from his state “who are feeling the effects of Trump’s chaos cuts. Some still can’t access funds to serve their patients. It’s unacceptable, it’s illegal, and we’re getting to the bottom of it.”
Sen. Jeanne Shaheen, D-N.H. also met with New Hampshire’s centers “ to discuss how President Trump’s funding chaos continues to impact them.”
Discussion during an Energy and Commerce Health Subcommittee hearing Thursday delved into the ongoing financial issues being experienced by the nation’s health centers.
“While it is of concern that health centers in Virginia may have closed, my understanding is all that’s getting worked out,” said Rep. Morgan Griffith, R-Va., adding that while one center in his district did have issues, it did not result in a clinic closure. “No closure has resulted that I’m aware of in my district.“
Rep. Raul Ruiz, D-Calif., referring to Griffith said, “I’m not sure the people in his district who are served by two FQHCs that closed and now must drive miles upon miles, even up to two hours for care, will think that these actions are inartful but just downright harmful and costly.”
Rep. Marc Veasey, D-Texas, also spoke of issues in his district.
“There were federally qualified health care centers across Texas that couldn’t get into the database,” he said, also acknowledging the issues in Virginia. “This isn’t some sort of a game. This is serious, and lives are at stake.”
Targeted organizations
St. John’s Community Health, a group of FQHCs in Los Angeles, said they lost a Centers for Disease Control and Prevention HIV prevention program grant that had been used to serve transgender adults because of the president’s executive order about “gender ideology.”
“We will not succumb to fear mongering and threats — Trump’s attacks on immigrant and transgender communities won’t stop us from delivering the care our patients need,” said Jim Mangia, president and CEO of St. John’s Community Health.
The organization plans to sue in response to the grant termination.
On Thursday, St. John’s Community Health said they were unsuccessful in attempting to draw funding for their mental health services for trans and nonbinary people. The latest freeze compromises an additional $4 million in federal funds.
Musk personally vowed to end funding for several organizations connected to the Lutheran church — organizations that receive several grants to provide health care and housing assistance — after former national security adviser Michael Flynn accused the church of money laundering.
Some of the organizations Flynn highlighted operate health centers, including Lutheran Social Services of Central Ohio.
“The DOGE team is rapidly shutting down these illegal payments,” Musk posted on X Sunday.
On Sunday, Bishop Elizabeth Eaton, who presides over the Evangelical Lutheran Church in America, called the accusations “false.”
“Despite misinformation and baseless doubt cast today on funding that supports Lutheran organizations across our country, the ELCA remains steadfast in our commitment and work with our many Lutheran partners and expressions of our church,” Eaton said in a video statement.
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