Department of Health layoffs were expected, due to end of Covid funding

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Government workers in Juneau protest at the State Capitol over Trump budget reductions in February, 2025.

The Alaska Department of Health has laid off 30 employees, a move attributed to the expiration of federal Covid-19 grants that funded their positions.

The department confirmed that all 30 roles were either fully or partially supported by these temporary funds, which were allocated during the height of the pandemic to bolster public health efforts.

According to DOH officials, the grants were never intended to be a permanent funding source. Most were set to expire in 2027, and are just expiring early due to the need to reduce federal spending.

The department had developed a strategic wind-down plan to align with the grants’ original termination date, ensuring a smooth transition as the extra resources phased out.

The layoffs come at a time when the Alaska Department of Health is grappling with a 12% vacancy rate across its workforce. The department is encouraging affected employees to apply for other open positions within the agency for which they are qualified.

To support the impacted employees, the DOH is collaborating with the Division of Personnel and the Department of Labor and Workforce Development. These agencies are offering job placement services, unemployment assistance, and additional resources to help the laid-off workers navigate their next steps.