A federal judge has ruled that the Department of Health and Human Services (HHS) must face a lawsuit filed by a coalition of 19 states and the District of Columbia. The lawsuit challenges the agency's restructuring and mass layoffs initiated by Health Secretary Robert F. Kennedy Jr. The states argue that the actions are unconstitutional and illegal.
What happened
On March 27, 2025, HHS announced it would issue termination notices to employees as part of a plan to restructure the department. The plan involved collapsing 28 agencies into 15 and closing half of HHS's 10 offices. The states filed a lawsuit in early May, alleging the changes and layoffs were unconstitutional.
How many employees affected
HHS planned to send termination notices to 10,000 employees as part of the restructuring.
Why layoffs happened
The HHS restructuring was part of RFK Jr.'s plan to “Make America Healthy Again.” The lawsuit alleges that the administration systematically deprived HHS of necessary resources. The states argue the cuts targeted “disfavored work and programs.”
Company background
The Department of Health and Human Services (HHS) is a U.S. government agency responsible for protecting the health of all Americans and providing essential human services.
Industry impact
The lawsuit claims that the restructuring and layoffs have negatively impacted critical agency functions. The states allege that factories were shut down, labs stopped testing for infectious diseases, and partnerships were suspended. They also claim the FDA missed a vaccine application deadline and canceled a key test for the bird flu virus.
What's next
The judge rejected the Trump administration's bid to dismiss the lawsuit, allowing the states' case to proceed. The judge had previously granted a preliminary injunction to halt the changes. The case will now move forward in the U.S. District Court for the District of Rhode Island.
Source: fiercehealthcare.com