MDH Experiences $226 Million Hit from Federal Covid-19 Grant Cut

March 27, 2025

On March 25, the federal government announced cuts of $11.4 billion in COVID-19 related grants nationwide.  

In Minnesota, the impact is a loss of approximately $226 million in funding to the Minnesota Department of Health (MDH), approximately 25% of its current budget. Although a large proportion of the funds were scheduled to expire in July 2026, Commissioner of Health Brooke Cunningham, MD, PhD, indicated, on MPR’s Minnesota Now program, that planning and preparation underway to adapt to that “cliff” has been disrupted.  

“Abrupt terminations of grants and contracts is unprecedented and will impact our work and that of our partners,” Cunningham said. “Every dollar rescinded had been thoroughly reviewed and approved for its intended purpose by the federal government.” 

One specific casualty of the cuts is the MDH Prep Alliance Project, an initiative advocated for by the MMA, which was aimed at documenting challenges faced by physicians and other healthcare professionals during the pandemic that could help inform improved medical-public health collaboration in future public health emergencies. 

 

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