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Senator Warren Questions HHS Nominee on Legality of Cancelling Grants

Strategic Insights

— 2 min read

At a Senate Finance Committee hearing, U.S. Senator Elizabeth Warren (D-Mass.) questioned Michael Stuart, nominee for general counsel of the Department of Health and Human Services (HHS), on the legality of canceling grants that benefit the health of the American people. The hearing focused on the Department's mass cancellation of grants, including Substance Abuse and Mental Health Services Administration (SAMHSA) grants, and the conditions under which HHS can terminate these grants. Senator Warren read Mr. Stuart the relevant law, which states that HHS can terminate SAMHSA grants only if "a state has materially failed to comply with the agreements or other conditions required for the receipt of the grant."

Key Takeaways:

  • The Department of Health and Human Services (HHS) has been subject to more than a dozen lawsuits alleging that the Department has illegally cancelled contracts and grants, including SAMHSA grants.
  • Federal law states that HHS can terminate SAMHSA grants only if "a state has materially failed to comply with the agreements or other conditions required for the receipt of the grant."
  • Senator Warren read Mr. Stuart the relevant law and questioned him on whether Secretary Kennedy could cancel a grant simply because someone's work is no longer necessary or because the secretary doesn't like their face.
  • Mr. Stuart refused to commit to advising Secretary Kennedy that cancelling SAMHSA grants for being "no longer necessary" would be unlawful, despite a clear ruling from a federal judge indicating these actions were illegal.
  • Senator Warren expressed concern that Mr. Stuart's advice might be inconsistent with the law and asked him to deliver a message to Secretary Kennedy to follow the terms and conditions of the agreement.
  • The hearing highlighted the importance of following the law and ensuring that grants are cancelled only under the correct conditions.
  • Mr. Stuart's responses suggest that he will follow the law and oppose cancelling grants without proper reason, but his initial failure to commit to providing such advice raises concerns about his ability to serve as the top lawyer at HHS.

Statistics:

  • Since January, the Department of Health and Human Services has been subject to more than a dozen lawsuits alleging that the Department has illegally cancelled contracts and grants.
  • The Department of Health and Human Services has cancelled SAMHSA grants worth tens of millions of dollars.
  • The Substance Abuse and Mental Health Services Administration (SAMHSA) grants support substance abuse and mental health treatment programs in various states.
  • The Department of Health and Human Services has been accused of improperly cancelling grants for reasons not specified in the contracts.

Sources:

  • Transcript: Hearing to Consider the Nomination of Michael Stuart to be General Counsel at the U.S. Department of Health and Human Services, Senate Finance Committee, July 31, 2025.
  • 42 USC 300x 55.

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