October 03, 2025<\/h6>\nKFF Health News: Health Centers Face Risks as Government Funding Lapses<\/h2>\n\n
\n ![\"\"](\"https:\/\/retiredamericans.org\/wp-content\/uploads\/2025\/10\/10-10-25-KFF-2-300x199.png\")
\n <\/a>St. John\u2019s Community Health in Los Angeles is one of the roughly 1,500 community health centers, some of which run multiple clinics, that are bracing for cuts to government funds they rely on to operate. (Jackie Forti\u00e9r\/KFF Health News)<\/figcaption><\/figure>\nApproximately 1,500 federally funded health centers across the United States are grappling with severe financial difficulties as a government shutdown exacerbates existing revenue cuts. These centers, which provide essential services to millions of low-income individuals, may be forced to reduce staff or services, and some could even close their doors. Advocates warn that this could lead to increased pressure on already overcrowded hospital emergency rooms.<\/p>\n
\u201cThis is the worst time in all the years I have been working in health care,\u201d stated Jim Mangia<\/a>, president and CEO of St. John\u2019s Community Health<\/a>, which operates 28 clinics serving over 144,000 patients in California. \u201cWe are facing federal cuts and extreme state cuts that will impact services.\u201d<\/p>\nSt. John\u2019s and other federally qualified health centers provide primary care and a variety of services either free of charge or on a sliding fee scale. Nationwide, these centers serve nearly 34 million patients<\/a> in the most underserved areas of the country.<\/p>\nFunding for these centers primarily comes from two sources: grants from the federal Community Health Center Fund<\/a> and reimbursements from programs like Medicaid, which provides health insurance for low-income individuals and those with disabilities. However, both funding routes are currently facing challenges.<\/p>\nRecently, Congress has approved grant money in small increments. In March, lawmakers extended funding until September 30, but that funding expired after the Republican-controlled Congress failed to pass a funding law, resulting in a government shutdown.<\/p>\n
Advocates argue that health centers require long-term funding solutions to plan effectively, ideally through a multiyear funding commitment. In early 2024, the centers received $4.4 billion in grants, but the National Association of Community Health Centers is advocating for at least $5.8 billion<\/a> annually for two years to maintain operations.<\/p>\nThe challenges facing the health center safety net are multifaceted, according to Vacheria Keys<\/a>, vice president of policy and regulatory affairs for the association. The new spending law, dubbed the \u201cOne Big Beautiful Bill Act\u201d by Republicans, proposes significant cuts to Medicaid, further threatening the financial stability of health centers.<\/p>\nMedicaid accounted for 43% of the $46.7 billion in health center revenue in 2023. Advocates warn that reduced Medicaid payments will widen the gap between funding and operational costs.<\/p>\n
Additionally, funding for workforce programs is crucial to support healthcare delivery, as centers struggle to hire and retain staff, according to Feygele Jacobs<\/a>, director of the Geiger Gibson Program in Community Health at George Washington University.<\/p>\nThe first community health clinics emerged in the 1960s, with Congress typically providing bipartisan support for their funding. However, the current struggle began when the Trump administration froze domestic aid<\/a> in January, preventing some centers from accessing already approved grant money, leading to closures or mergers in states like Virginia.<\/p>\nAs these cuts loom, patients are expected to face new challenges. Changes in Medicaid under President Trump\u2019s tax-and-spending law will require enrollees to report work or service hours to maintain their benefits. Furthermore, enhanced tax credits provided by the Biden administration to assist consumers with Affordable Care Act health insurance are set to expire at year-end, potentially increasing costs for many.<\/p>\n
One reason for the government shutdown is the disagreement over extending these tax credits, which protect consumers from rising insurance costs. The Republican funding bill did not include an extension, with leaders suggesting the issue should be addressed separately.<\/p>\n
\u201cConsumers will need more support than ever,\u201d Jacobs noted, emphasizing that Medicaid cuts and the expiration of tax credits could \u201cpotentially throw people out of coverage.\u201d<\/p>\n
Notably, 90% of health center patients live at or below the federal poverty level<\/a>, with 40% identifying as Hispanic<\/a>. \u201cWe are receiving 300 calls per day from patients concerned about their coverage,\u201d Mangia added.<\/p>\nWhile Republicans are not directly targeting health centers, their support for Medicaid cuts will impact clinic finances. Many argue that Medicaid spending has ballooned and that reducing its growth is essential for sustainability.<\/p>\n
State and Local Support<\/strong><\/p>\nIn the face of these challenges, health centers are also seeking support from local governments and communities. Some states, including Connecticut, Minnesota, Illinois<\/a>, and Massachusetts<\/a>, have allocated funds for health centers in their annual budgets. Maryland, Oregon, and Wisconsin have also provided support.<\/p>\nHowever, the sustainability of this funding remains uncertain. While some states have increased their support, others, like California, are making cuts<\/a> to their programs in anticipation of Medicaid reductions.<\/p>\nIn Los Angeles, Mangia suggested that collaboration with county partners could be a potential solution, noting the county’s large population. \u201cWe can tax ourselves to increase funding for health care services,\u201d he proposed.<\/p>\n
Health center leaders are forming a coalition that aims to include key stakeholders in the county\u2019s healthcare system\u2014community health centers, clinics, hospitals, doctors, health plans, and unions\u2014to initiate a ballot petition. The goal is to allow voters to decide on tax measures to support health centers.<\/p>\n
\u201cWe are learning that the federal government and the state government are not reliable when it comes to continuing to fund health care,\u201d Mangia concluded.<\/p>\n
By Paula Andalo<\/strong><\/a><\/p>\nKFF Health News<\/a> is a national newsroom that produces in-depth journalism about health issues and is one of the core operating programs at KFF\u2014an independent source of health policy research, polling, and journalism. Learn more about KFF<\/a>.<\/em><\/p>\n<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"October 03, 2025 KFF Health News: Health Centers Face Risks as Government Funding Lapses St. John\u2019s Community Health in Los Angeles is one of the roughly 1,500 community health centers, some of which run multiple clinics, that are bracing for cuts to government funds they rely on to operate. (Jackie Forti\u00e9r\/KFF Health News) Approximately 1,500 […]<\/p>\n","protected":false},"author":1,"featured_media":1645,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[57],"tags":[],"class_list":["post-3036","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-retirement"],"_links":{"self":[{"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/posts\/3036","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/comments?post=3036"}],"version-history":[{"count":0,"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/posts\/3036\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/media\/1645"}],"wp:attachment":[{"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/media?parent=3036"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/categories?post=3036"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/tags?post=3036"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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![\"\"](\"https:\/\/retiredamericans.org\/wp-content\/uploads\/2025\/10\/10-10-25-KFF-2.png\")
\n <\/a>
Approximately 1,500 federally funded health centers across the United States are grappling with severe financial difficulties as a government shutdown exacerbates existing revenue cuts. These centers, which provide essential services to millions of low-income individuals, may be forced to reduce staff or services, and some could even close their doors. Advocates warn that this could lead to increased pressure on already overcrowded hospital emergency rooms.<\/p>\n
\u201cThis is the worst time in all the years I have been working in health care,\u201d stated Jim Mangia<\/a>, president and CEO of St. John\u2019s Community Health<\/a>, which operates 28 clinics serving over 144,000 patients in California. \u201cWe are facing federal cuts and extreme state cuts that will impact services.\u201d<\/p>\n St. John\u2019s and other federally qualified health centers provide primary care and a variety of services either free of charge or on a sliding fee scale. Nationwide, these centers serve nearly 34 million patients<\/a> in the most underserved areas of the country.<\/p>\n Funding for these centers primarily comes from two sources: grants from the federal Community Health Center Fund<\/a> and reimbursements from programs like Medicaid, which provides health insurance for low-income individuals and those with disabilities. However, both funding routes are currently facing challenges.<\/p>\n Recently, Congress has approved grant money in small increments. In March, lawmakers extended funding until September 30, but that funding expired after the Republican-controlled Congress failed to pass a funding law, resulting in a government shutdown.<\/p>\n Advocates argue that health centers require long-term funding solutions to plan effectively, ideally through a multiyear funding commitment. In early 2024, the centers received $4.4 billion in grants, but the National Association of Community Health Centers is advocating for at least $5.8 billion<\/a> annually for two years to maintain operations.<\/p>\n The challenges facing the health center safety net are multifaceted, according to Vacheria Keys<\/a>, vice president of policy and regulatory affairs for the association. The new spending law, dubbed the \u201cOne Big Beautiful Bill Act\u201d by Republicans, proposes significant cuts to Medicaid, further threatening the financial stability of health centers.<\/p>\n Medicaid accounted for 43% of the $46.7 billion in health center revenue in 2023. Advocates warn that reduced Medicaid payments will widen the gap between funding and operational costs.<\/p>\n Additionally, funding for workforce programs is crucial to support healthcare delivery, as centers struggle to hire and retain staff, according to Feygele Jacobs<\/a>, director of the Geiger Gibson Program in Community Health at George Washington University.<\/p>\n The first community health clinics emerged in the 1960s, with Congress typically providing bipartisan support for their funding. However, the current struggle began when the Trump administration froze domestic aid<\/a> in January, preventing some centers from accessing already approved grant money, leading to closures or mergers in states like Virginia.<\/p>\n As these cuts loom, patients are expected to face new challenges. Changes in Medicaid under President Trump\u2019s tax-and-spending law will require enrollees to report work or service hours to maintain their benefits. Furthermore, enhanced tax credits provided by the Biden administration to assist consumers with Affordable Care Act health insurance are set to expire at year-end, potentially increasing costs for many.<\/p>\n One reason for the government shutdown is the disagreement over extending these tax credits, which protect consumers from rising insurance costs. The Republican funding bill did not include an extension, with leaders suggesting the issue should be addressed separately.<\/p>\n \u201cConsumers will need more support than ever,\u201d Jacobs noted, emphasizing that Medicaid cuts and the expiration of tax credits could \u201cpotentially throw people out of coverage.\u201d<\/p>\n Notably, 90% of health center patients live at or below the federal poverty level<\/a>, with 40% identifying as Hispanic<\/a>. \u201cWe are receiving 300 calls per day from patients concerned about their coverage,\u201d Mangia added.<\/p>\n While Republicans are not directly targeting health centers, their support for Medicaid cuts will impact clinic finances. Many argue that Medicaid spending has ballooned and that reducing its growth is essential for sustainability.<\/p>\n State and Local Support<\/strong><\/p>\n In the face of these challenges, health centers are also seeking support from local governments and communities. Some states, including Connecticut, Minnesota, Illinois<\/a>, and Massachusetts<\/a>, have allocated funds for health centers in their annual budgets. Maryland, Oregon, and Wisconsin have also provided support.<\/p>\n However, the sustainability of this funding remains uncertain. While some states have increased their support, others, like California, are making cuts<\/a> to their programs in anticipation of Medicaid reductions.<\/p>\n In Los Angeles, Mangia suggested that collaboration with county partners could be a potential solution, noting the county’s large population. \u201cWe can tax ourselves to increase funding for health care services,\u201d he proposed.<\/p>\n Health center leaders are forming a coalition that aims to include key stakeholders in the county\u2019s healthcare system\u2014community health centers, clinics, hospitals, doctors, health plans, and unions\u2014to initiate a ballot petition. The goal is to allow voters to decide on tax measures to support health centers.<\/p>\n \u201cWe are learning that the federal government and the state government are not reliable when it comes to continuing to fund health care,\u201d Mangia concluded.<\/p>\n By Paula Andalo<\/strong><\/a><\/p>\n KFF Health News<\/a> is a national newsroom that produces in-depth journalism about health issues and is one of the core operating programs at KFF\u2014an independent source of health policy research, polling, and journalism. Learn more about KFF<\/a>.<\/em><\/p>\n <\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":" October 03, 2025 KFF Health News: Health Centers Face Risks as Government Funding Lapses St. John\u2019s Community Health in Los Angeles is one of the roughly 1,500 community health centers, some of which run multiple clinics, that are bracing for cuts to government funds they rely on to operate. (Jackie Forti\u00e9r\/KFF Health News) Approximately 1,500 […]<\/p>\n","protected":false},"author":1,"featured_media":1645,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[57],"tags":[],"class_list":["post-3036","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-retirement"],"_links":{"self":[{"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/posts\/3036","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/comments?post=3036"}],"version-history":[{"count":0,"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/posts\/3036\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/media\/1645"}],"wp:attachment":[{"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/media?parent=3036"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/categories?post=3036"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/tags?post=3036"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}