Dallas County Sues Trump Administration Over Order to Return Pandemic Funds

By Paul Harris, Jan 5, 2026

By Terri Langford, The Texas Tribune

DALLAS, TX — Dallas County, buoyed by a recent Harris County court win, has filed a federal lawsuit against the Trump administration over the clawback of $70 million in public health funds.

Dallas County’s lawsuit, filed in Washington, D.C. on Dec. 5, claims the demand last spring that $11.4 billion in unspent pandemic-era funding be returned to federal coffers was an illegal one. The argument mirrors one made in a lawsuit filed by a coalition of 23 states — all led by Democratic governors — and the District of Columbia, that the rescinding of the unspent money awarded under one president cannot be seized under a different one. The states’ court battle is ongoing.

Texas did not join the states’ lawsuit, despite losing an estimated $700 million.

In Dallas County’s case, the public health department lost $70 million in federal funding funneled through the Texas Department of State Health Services and as a result, the county had to lay off nearly two dozen employees. The sudden loss in funding will cause “significant harm” to Dallas County, the lawsuit states.

“The funding, which Dallas County received through new grant programs during the COVID-19 pandemic, was not limited to the duration of the pandemic and was generally expected to address the effects of the pandemic and prepare Dallas County for future public health crises,” Dallas County’s lawsuit states.

The federal government’s reasoning for the clawback was that the grants are no longer needed because the pandemic had ended.

Dallas County’s case is now before U.S. District Judge Christopher Cooper, the same judge who last summer ordered the return of $20 million in federal public health funds to Harris County.

Last spring, the Trump administration ordered health departments across the country to return $11 billion in unused pandemic-era public health funds. Although much of the pandemic-era funding was due to expire a few months after the Trump administration’s announcement, local public health departments had in some cases until 2026 to spend the money.