Dueling HHS reversals whipsaw federal employees, grant recipients

The Health and Human Services Department has rescinded layoffs for around 400 employees that have sat on paid leave since April, though at the same time it has withdrawn billions of dollars in funding for grants focused on mental health and substance abuse. 

The reduction-in-force rescission came as welcome news to the employees whose fate has hung in the balance for more than nine months, those impacted told Government Executive. The National Institute for Occupational Safety and Health personnel, who primarily investigate outbreaks and illnesses within the workplace, were not provided a reason for their reversal of fate, but were told on Tuesday they were being placed back into active status with immediate effect. 

“You previously received a notice regarding the Department of Health and Human Services reduction in force,” the notice read. “That notice is hereby revoked; you are not affected by the RIF and remain employed in your position of record.” 

Employees reported to work on Wednesday. Their RIF rescission was first reported by Bloomberg. 

“Overjoyed for me and my colleagues,” said one reinstated employee of the decision. 

Andrew Nixon, an HHS spokesperson, did not say why HHS changed course, noting instead that the nation's public health functions "remain intact and effective."

“The Trump administration is committed to protecting essential services—whether it’s supporting coal miners and firefighters through NIOSH, safeguarding public health through lead prevention, or researching and tracking the most prevalent communicable diseases,” Nixon said. “Enhancing the health and well-being of all Americans remains our top priority.”

NIOSH, housed within the Centers for Disease Control and Prevention, previously recalled around 300 employees it had laid off in April, though the agency said at the time it would lay off one additional employee for each RIF rescission. The remaining employees stayed on paid administrative leave as a court battle prevented the agency from separating the workers. 

NIOSH also recalled recently hired employees who were fired while still in their initial probationary periods, according to two employees familiar with the matter. Those workers were originally terminated in February. 

“The administration’s attempt to lay off nearly every NIOSH worker was shameful and illegal, considering that much of NIOSH’s work is required by law,” said American Federation of Government Employees President Everett Kelley. “As the union representing these dedicated public servants, we are grateful that their jobs have been restored and we will continue fighting to ensure NIOSH has the resources and support it needs to serve the American public.”

He added the reinstatements would allow for the continuation of mine safety research, chemical hazard assessment and research on emerging occupational risks. The Trump administration proposed gutting NIOSH by 80% in its fiscal 2026 budget. Congress has yet to put forward a compromise appropriations bill for HHS, but the House has proposed a 13% reduction for the agency while the Senate has suggested it be fully funded. 

Also on Tuesday, the Trump administration notified thousands of Substance Abuse and Mental Health Services Administration grantees it was immediately clawing back promised funds amounting to billions of dollars in total.

The notices went out without any prior notice from SAMHSA’s workforce or the grant recipients, employees and impacted grantees told Government Executive. Between 2,500 and 2,900 grants were canceled, according to an employee with access to the data. Around $1.9 billion in unobligated funds from those grants was clawed back. 

SAMHSA employees were called into a meeting around 5 p.m on Tuesday and were informed about the grant terminations. The goal appeared to be to eliminate the vast majority of grants that originated in the Biden administration, the employee said. SAMHSA leadership learned of the terminations around the same time as the employees. 

Grant recipients received emails around 11 p.m. Tuesday evening informing them that their work did not “align with [the administration’s] priorities,” according to one such grantee.

Terminated awards ranged from programs that fund drug treatment at re-entry following incarceration to tuition for individuals in college programs to become clinicians or behavioral health professionals. 

“These cuts are disheartening and cruel, and they threaten the life-saving work of hundreds of organizations that provide critical mental health support across the United States,” said Daniel Gillison, CEO of the National Alliance on Mental Illness. "These abrupt and unjustified cuts will immediately disrupt suicide prevention efforts, family and peer recovery support, overdose prevention and treatment, and mental health awareness and education programming, along with so many more essential services, putting an unknown number of lives at stake."

Many of the grants were only around halfway through their scheduled four-year runways, according to internal documents reviewed by Government Executive. Agency leadership was provided a spreadsheet on Tuesday of every active SAMHSA, including a “proposed to cancel” or a “proposed to keep” tab. It was not immediately clear who made those decisions as SAMHSA staff were not involved. 

HHS did not offer a comment on the SAMHSA cuts, which were first reported by NPR.