CT community health centers struggling to access funds amid Trump orders, officials say

CT Insider – Wednesday, February 12, 2025
By Cris Villalonga-Vivoni

Community health centers across Connecticut are experiencing disruptions in payment and communications as a result of President Donald Trump’s executive orders that froze federal funds, in addition to guidance from his administration, according a letter from the state’s congressional delegation that was delivered to the U.S. Department of Health and Human Services on Wednesday.

The letter, addressed to acting HHS secretary Dr. Dorothy Fink, said the funding freeze is causing confusion and cuts to health care services for many state residents who rely on community health centers. The issues will continue to grow into a “catastrophic” situation. If funding is fully paused again for a long period of time, the lawmakers’ letter said the centers have only 57 days of cash on hand and will need to cut services and staff within two weeks to keep their doors open.

“Health center leaders in Connecticut say that they are experiencing unprecedented panic from both staff and patients, who are unclear whether funds can be drawn down for services like cancer detection and early childhood development due to the recent Executive Orders,” read the letter signed by U.S. Sen. Chris Murphy, Sen. Richard Blumenthal, Congressman Jim Himes, Congressman John Larson, Congressman Joe Courtney and Congresswoman Jahana Hayes and Congresswoman Rosa DeLauro.

Community health centers rely on multiple grants from the federal government to help fund specific care or projects, like school-based health centers, behavioral health and even construction. However, the executive orders have caused complications, said Deb Polun, chief strategy officer at the Community Health Center Association of Connecticut.

Connecticut’s 17 community health center systems have reported being locked out of the payment management system, where they typically draw previously awarded federal funds, since late January. The centers are also experiencing delays in receiving their funds and are undergoing “unusual review processes” to access the money, the letter states.

New Haven’s Fair Haven Community Health Center, for example, is using congressionally directed funds to build a new structure that is around 80% complete. However, Polun said the staff weren’t sure if they could pay their contractors with the funding disruptions a few weeks ago.

Although a federal court order blocked the funding freeze, the disruptions have persisted, the letter states. Polun said there’s been a lot of delays with funding requests that typically turn around in 24 hours, and are now taking a few days or a week to arrive. She said the payment portal was overwhelmed by the number of requests after the freeze was rescinded, resulting in the delays.

The lawmakers’ letter added that at least one center is unsure if it’ll make its next payroll. In addition, patients are canceling appointments out of worry that they won’t be served.

“A threat to health center funding and operations is a threat to the health of our most vulnerable patients in Connecticut,” the letter reads, describing community health centers as a “lifeline” for those that rely on it.

Wheeler Clinic, Sabrina Trocchi, president and CEO, said her organization was among those unable to visit the federal payment system after the executive order was issued. Wheeler staff could re-access it a few days later after the freeze was rescinded, but it took around three days for them to receive a monthly reimbursement, prompting concern it may not arrive.

Federal funding only makes up about 3% of its total budget at Wheeler Clinic, so Trocchi said the center was “fortunate” to deliver care without interruption since they don’t rely on federal dollars as much as other community health centers.

However, there are concerns about how potential restrictions could be applied to the federal fund’s requirements that limit the centers’ services, such as gender-affirming care and supporting diversity, equity and inclusion work.

At the same time, Polun said the state can further support centers by raising the historically low Medicaid reimbursement rates.

“Community health centers are driven by their missions to provide high-quality care to all people in their communities, but you can’t run a business on a mission,” Polun said. “We do need the support from the federal government through grants and from the state through an increased Medicaid reimbursement.

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