A wide range of organizations and agencies that depend on federal health department funds say they have been locked out of the online system responsible for tracking and depositing their money, in the wake of the White House’s move to freeze funding across the Trump administration.
These include state Medicaid programs which have been unable to log into the Payment Management Services web portal, or PMS, run by the Department of Health and Human Services, which handles billions of dollars of payments every year. The website currently warns that due “to Executive Orders regarding potentially unallowable grant payments, PMS is taking additional measures to process payments. Reviews of applicable programs and payments will result in delays and/or rejections of payments.”
A spokesperson for HHS did not immediately respond to a request for comment on why recipients have been locked out of the portal.
White House press secretary Karoline Leavitt told reporters Tuesday that Medicaid recipients and others who directly receive federal funding will continue to receive it. “It does not affect individual assistance that’s going to Americans,” she said. She also insisted the funding pause is “temporary.”
But other recipients of federal health dollars have also reported being locked out of the payment system, including Head Start early childhood education programs and community health centers.
“My staff has confirmed reports that Medicaid portals are down in all 50 states following last night’s federal funding freeze. This is a blatant attempt to rip away health care from millions of Americans overnight and will get people killed,” Oregon Democratic Sen. Ron Wyden posted on X.
“Multiple states locked out of Medicaid portal,” Sen. Brian Schatz of Hawaii tweeted. “This is a Trump shutdown, except this time it’s unlawful.”
Missouri Republican Sen. Josh Hawley said he was assured Medicaid would not be affected.
“What the White House has told us just now is that Medicaid is not, categorically not, covered by this,” Hawley said. “In other words, there will be no interruption to Medicaid or Medicare or any grant that floats to individuals.”
A spokesperson for the National Association of Medicaid Directors says they have formally sought guidance from the Trump administration to explain the interruption. Joann Alker of the Georgetown University Center for Children and Families called on the administration to issue a statement clarifying that Medicaid should not be affected, warning it is a “major crisis” as states look to draw down funding for the month.
“Any pause in federal funding of Medicaid — the largest source of federal funding received by states — would be disastrous for states as they need to draw down federal funds to meet their financial obligations to the health care providers and health plans serving Medicaid and CHIP beneficiaries,” Alker said.
In a statement ahead of the lockout, HSS also announced that it would be reevaluating its payment processes in light of the funding freeze. The agency said it is working to ensure that essential services are not disrupted as a result of the pause in funding.
The freeze on federal funding has sent shockwaves through the healthcare industry, with many organizations expressing concern about the impact it will have on their ability to provide care to vulnerable populations. Head Start programs, which serve low-income children and families, are particularly at risk as they rely heavily on federal funding to operate.
Community health centers, which provide essential healthcare services to underserved communities, are also facing uncertainty as a result of the funding freeze. Many of these centers rely on federal grants to cover the cost of providing care to patients who may not have access to other healthcare options.
The inability to access federal funding through the PMS portal has left many organizations scrambling to find alternative sources of funding to keep their operations running. Without the support of federal funds, these organizations may be forced to cut services or even shut down, leaving thousands of Americans without access to essential healthcare services.
The Trump administration’s decision to freeze federal funding has been met with widespread criticism from lawmakers and advocacy groups who argue that it will have a devastating impact on the healthcare system. Many are calling on the administration to reverse course and release the funds needed to keep critical services operating.
In the meantime, organizations that rely on federal funding are left in limbo, unsure of when or if they will be able to access the money they need to continue providing care to those who need it most. As the funding freeze continues, the future of many healthcare organizations hangs in the balance, with the health and well-being of millions of Americans at stake.
