Hennepin County Accuses Trump Admin of Diverting $86M in Teen Funds
Lawyers for Hennepin County filed a legal challenge in the U.S. Court of Federal Claims accusing the Trump administration of unlawfully diverting up to $86 million in federal teen pregnancy prevention funds to a private consulting firm with ties to top health officials and no prior experience in the field, imprintnews.org reported.
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Key Clinical Takeaways:
- Hennepin County attorneys allege that a federal award of up to $86.1 million to the Virginia-based consulting firm Guidehouse bypassed standard public review and fair competition rules.
- Federal spending records show the contract is designated for adolescent social and youth engagement services through the Administration for Children and Families, replacing funds previously distributed to public and private teen pregnancy prevention grant recipients.
- The U.S. Department of Health and Human Services and Guidehouse declined or did not respond to requests for comment regarding the litigation and contract details.
Minnesota County Alleges Unlawful Diversion of Federal Prevention Funds
The legal dispute centers on a federal grant program traditionally providing approximately $100 million annually to local public health departments and community organizations. Congress authorized the funding to support evidence-based programs aimed at reducing teen pregnancies, with 75 percent dedicated to implementation and the remainder assigned to research on innovative practices. In June, the Trump administration canceled ongoing grants to dozens of entities, including Minnesota’s Hennepin County, citing agency priorities regarding the normalization of sexual activity for minors. Following those cancellations, federal authorities issued a Request for Quotations to a select group of contractors, resulting in an award to Guidehouse within 36 hours, according to the county’s court filings.
Attorneys for Hennepin County state in the bid protest that the procurement process violated four federal transparency and fair competition statutes, as well as the 2009 legislation establishing the Teen Pregnancy Prevention Program. The legal filing describes the contract decision as arbitrary, capricious, an abuse of discretion, contrary to law, and exceeding statutory authority. The lawsuit asks the court to permanently block the Guidehouse contract and mandate a redo of the application process.
Ties Between Federal Officials and the Awarded Consulting Firm
Public databases show the company received a maximum contract worth $86.1 million for adolescent social and youth engagement services under the Administration for Children and Families, an agency housed within the U.S. Department of Health and Human Services. The agency’s principal deputy assistant secretary since August 2025 is Cody Inman, whose LinkedIn profile indicates he served as an associate director at Guidehouse for more than four and a half years prior to joining the administration.
The contract has drawn criticism from lawmakers and public health advocates. California Representative Judy Chu called the consulting contract deeply concerning in an email statement. University of Washington social work professor Angelique Day stated that the influx of agencies that do not have the expertise to do the work does not bode well for the field. Meanwhile, organizations such as EyesOpenIowa, which lost funding earlier in the year, report that the grant terminations stripped away significant portions of their operating budgets.
Hennepin County Pursues Separate Legal Challenges
The bid protest filed by Hennepin County is distinct from a joint lawsuit filed in July by the county alongside a Des Moines, Iowa Planned Parenthood and other groups. A first hearing before a judge in the U.S. Court of Federal Claims is scheduled for Tuesday. Spokespeople for federal agencies, Hennepin County, and Guidehouse did not respond to requests for comment or declined to comment on the contract due to the ongoing litigation.