February 6, 2025

OMB memo halts HHS funding to 1,400 rural health clinics

Thousands without healthcare as bureaucracy kills programs

📋Public Policy✊Civil Rights

Community health centers serve more than 32 million Americans—covering one in five rural residents and one in three people living in poverty (NBC News).

On 2025-02-06, the Office of Management and Budget issued a two-page memo directing all federal agencies to pause obligations and disbursements of all federal financial assistance (NBC News).

New York Governor Kathy Hochul reported that her state would forfeit roughly $300 million in federal funding earmarked for rural county health departments due to the freeze (NPR).

📋Public Policy✊Civil Rights

Test Your Knowledge

What happens when rural health centers close permanently?

When patients miss appointments due to clinic closures, what happens to healthcare costs?

How many rural hospitals have closed since 2010?

Rural Americans are more likely than urban Americans to rely on community health centers.

What percentage of rural residents rely on Medicaid for health coverage?

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People, bills, and sources

Governor Kathy Hochul (Governor of New York)

stated that New York would lose approximately $300 million in rural health funding as a result of the freeze (NPR).

What you can do

Students eligible for Pell Grants, federal student loans or Federal Work-Study can continue to apply and check disbursement status at studentaid.gov, as these programs were exempted from the freeze (Inside Higher Ed).

Community health centers funded through the federal Addiction and Mental Health grant—scheduled to run through Sep. 2025—should monitor award and reimbursement requests via Grants.gov before the end of Sep. 2025 (NPR; grants.gov).

Rural residents seeking primary or emergency care can locate the nearest federally qualified health centers using the HRSA Rural Health Clinic Locator at https://www.hrsa.gov/rural-health.