Dive Brief:
- A federal judge on Tuesday denied the Department of Health and Human Services’ attempt to dismiss a lawsuit contesting the department’s restructuring and sweeping layoffs last year.
- The suit, first filed in May by Democrat attorneys general in 19 states and Washington, D.C., argued the overhaul at the health department was unconstitutional and hindered its ability to manage critical health programs.
- The HHS attempted to dismiss the states’ complaint that sought to vacate the restructuring. But a judge for the district court in Rhode Island ruled the states have “plausibly alleged an entitlement to relief,” allowing the case to go forward.
Dive Insight:
The states, including New York, California, Washington, Illinois, Minnesota, Wisconsin and Hawaii, first brought the suit nearly a year ago in the wake of the HHS’ move to reorganize the department and lay off 10,000 workers.
The reduction in force was chaotic, plagued by mistakes and poor communication, workers told Healthcare Dive last spring.
Now, the department operates with about 15,000 fewer staffers than it did at the end of the Biden administration, as employees say they contend with increased workloads and fewer job flexibilities that have motivated some to look for other roles.
In their complaint, the states argued the restructuring and layoffs deprived them of resources needed to combat infectious disease, reduce smoking-related deaths and ensure families have access to crucial government programs, like child care program Head Start.
For example, the reorganization resulted in the Food and Drug Administration missing a vaccine application deadline and suspending a testing program for the virus that causes bird flu, the states said in their complaint.
The HHS moved to dismiss the lawsuit, arguing the court lacked standing to oversee the department’s employment decisions and that states hadn’t suffered valid injury.
However, on Tuesday the judge rejected the HHS’ claims, allowing the states’ complaint that HHS had overstepped its authority under the Constitution and the Administrative Procedure Act to move ahead.
The complaint “contains sufficient, plausible allegations” that the HHS’ restructuring and layoffs were arbitrary and capricious, District Judge Melissa DuBose wrote in the order.
“Specifically, Plaintiffs allege that Defendants failed to provide a reasonable basis in support of dismantling HHS and that they also failed to consider the consequences of their actions,” she said.
The HHS did not respond to a request for comment by press time.
