Alliance Health Update: Response to ARPA Funding Changes

As you may have learned from news reports, the Trump administration announced it is pulling back around $11.4 billion in COVID-related funding from states and local public health departments.

The North Carolina Department of Health and Human Services contacted Alliance Health and other state healthcare partners about this federal announcement.  Below is the information DHHS shared on this call.  The Department is still sorting through the details of the announcement to determine impacts to the state; however, please know that Alliance is tracking this issue, and we are in the process of evaluating the impacts as well. Please note that future updates on this topic from DHHS may be modified and/or added to this info.

What We Know

Federal officials informed DHHS of an immediate termination of federal grant funding related to COVID and the American Rescue Plan Act (ARPA). This federal funding, which was scheduled to cease in September 2025, includes funds from the Centers for Disease Control and Prevention (CDC) and the Substance Abuse and Mental Health Services Administration (SAMHSA).

Key points shared by DHHS:

• COVID-related funding from the state to providers had already ceased before this announcement.
• The majority is this funding involves program arrangements between DHHS and providers directly (where Alliance is not involved).  DHHS is directly contacting providers impacted by this development.
• There are no reductions to Medicaid related to this announcement.
• DHHS is actively seeking alternative funding sources to minimize any service impacts.
• Provider spending utilizing these funding sources after March 24, 2025, may not be reimbursable.

Current Uncertainties

We acknowledge several aspects of this federal development remain unclear at this time:

• DHHS is still evaluating the full impact of the funding termination.
• The status of other ARPA funding streams coming directly from counties to Alliance or providers.
• Whether any replacement funding sources will be identified.

Alliance is currently compiling a comprehensive list of services funded through ARPA funds to help assess potential impacts.  DHHS has committed to providing additional updates in the near future which we will share with you.  Again, if funding to you is impacted by this development, DHHS informed us that the Department will contact you directly.  Additionally, if there are any impacts to funding from the state to providers that is passed through Alliance, you will hear directly from Alliance within the coming week.

We appreciate your patience as we navigate these challenges together.  Our focus remains on ensuring continuity of quality care for those we serve.