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A newly revealed departmental memo warns that funding for federal programs run by the state Health Department could evaporate, possibly forcing employee furloughs. The document, obtained by Mississippi Today, signals serious fiscal uncertainty.
Risk of Furloughs as Funding Dries Up
The Health Department has clarified that no furloughs have been enacted so far. However, the memo’s release coincided with instructions requiring an undisclosed number of contract employees to suspend work this week due to the federal shutdown.
Because the agency relies heavily on federal dollars, it issued “stop-work orders” to numerous contract workers. Spokesperson Greg Flynn explained that employees were told to cease duties as their pay periods ended. Their compensation and roles will be paused until the shutdown concludes.
Dr. Dan Edney, the state health officer, distributed a memo after the federal government shut down, warning departmental staff about the fiscal fallout. Meanwhile, Congress remains at an impasse over funding bills as Republicans and Democrats brace for a prolonged standoff. President Trump has also prepared broader layoffs and cuts across the federal system.
Edney’s memo cautions that federally financed programs may face delays in reimbursements, disruptions to grant draws, or postponement of new commitments. Notably, the Health Department obtains 80% of its budget from federal sources—and that revenue sustains numerous essential services.
Impacts on Vital Services
One major program under threat is the Women, Infants and Children’s Nutrition Program (WIC), which provides supplemental food assistance to new mothers and small children. The memo asserts that WIC and other essential services will continue “as long as possible.” It remains unclear whether additional cuts will be necessary to preserve core functions.
If the shutdown drags on, Edney’s memo warns that the department may resort to temporary, unpaid furloughs. Flynn confirmed that a plan exists to prioritize which employees would be furloughed first—but that plan hasn’t yet been activated.
“Whether they become necessary depends on the federal government’s funding decisions in the coming days,” Edney’s memo states. “We are reviewing all available funding sources and will notify any impacted employees directly if furloughs are required.”
Recent Layoffs and Internal Restructuring
In addition to possible shutdown-related furloughs, the department has already terminated personnel this week. On Thursday, Mississippi Today reported the dismissal of at least 10 employees from divisions focused on preventive health and reducing health disparities. Officials described these changes as “personnel adjustments” made in response to “uncertainty around federal funding.”
One anonymous insider—briefed on internal decisions—told Mississippi Today that the layoffs partly stem from concerns raised in a report by State Auditor Shad White. That audit claimed Health Department lapses in monitoring taxpayer-backed allocations to the Office of Preventive Health and Health Equity.
Political Backdrop & Broader Implications
Senators returned to Capitol Hill Friday to vote on government funding—but no breakthrough appears imminent. Democrats demand expanded health care benefits extensions, while Republicans are pressing forward with daily votes to temporarily reopen government at current spending levels.
The central disagreement revolves around expiration of Biden-era health subsidies. Kaiser Family Foundation (KFF) analyses suggest that failure to renew the subsidies could cause marketplace insurance premiums to more than double next year.
Democratic Senator Raphael Warnock of Georgia has spotlighted the rising costs for his constituents—citing that a family of four insured by Anthem could see rates climb from $559 in 2025 to $2,131 in 2026. Mississippi’s Republican senators, Roger Wicker and Cindy Hyde-Smith, blame Democrats for the shutdown, asserting it threatens national security. Senate GOP leaders oppose bundling subsidy renewals into current funding bills, suggesting any extension should be handled separately.
In a rare move, the Trump administration has placed banners on government websites to blame Democrats directly. On the Department of Housing and Urban Development site, a message reads: “The Radical Left in Congress shut down the government. HUD will use available resources to help Americans in need.”
Department Response & Outlook
In his memo, Edney emphasized that the Health Department will strive to safeguard its workforce and maintain operations as much as possible.
“We understand that this uncertainty is difficult,” Edney wrote. “This is not the first time a federal shutdown has affected our agency, and we are committed to managing the situation with as little disruption as possible.”
As the financial standoff continues, department leaders must weigh which cuts are avoidable—and which may be inevitable.
FAQ
What triggers the stop-work orders for contract employees?
Because the Health Department depends heavily on federal funds, the shutdown forced the agency to instruct contract employees to suspend work until funding is restored.
How much of the department’s budget comes from federal sources?
Approximately 80% of the Health Department’s budget is sourced from federal funding, which underpins numerous programs and services.
Will essential services like WIC be discontinued immediately?
No. According to the department memo, programs such as WIC will continue “as long as possible.” Any additional cuts would only occur if funding gaps deepen or persist.
