RALEIGH, N.C. — Construction has come to a standstill at the North Carolina State Health Laboratory in Raleigh, a facility that was slated to play a crucial role in the state’s future response to public health crises. With updated testing infrastructure and safety systems still unfinished, officials now warn that the lab won't be ready should another public health emergency emerge.

In the middle of a partially completed lab, where floors are covered in protective plastic and new benches and biosafety cabinets await use, Dr. Scott Shone, Director of the North Carolina Department of Health and Human Services (NCDHHS) State Public Health Laboratory, offered a stark assessment.

“You can see new benches and vial safety cabinets, which are designed to keep our staff safe from what they’re working on,” Shone said.

But the lab’s progress has been abruptly halted. Last month, federal funding—approximately $230 million earmarked for the NCDHHS—was frozen by the Trump administration. Roughly $2 million of that was allocated specifically for the lab's ongoing renovations, leaving the state without critical resources to finish the facility.

“The federal funding cuts and the unpredictability of them really present a challenge with how we can navigate each day, much less the next,” Shone explained.

The facility serves as the backbone of North Carolina’s public health response, identifying and tracking threats like avian flu, measles, and other infectious diseases. It’s also where blood screenings for every newborn in the state are conducted, and where public health staff test for human exposure to hazards such as lead, rabies, and other contaminants.

“We are here to keep North Carolina safe,” said Shone. “We have the staff and the expertise to respond to the threats that we currently face. The reality is that federal funding cuts jeopardize the sustainability of that response.”

Due to the funding lapse, laboratory staff have had to consolidate operations into a much smaller portion of the facility. For now, they’re managing to keep pace with current demand, but a major outbreak could easily overwhelm the limited space and capacity.

In addition to the funding freeze at the state level, federal budget cuts have also affected the CDC—another key partner in disease surveillance and response. That’s creating a new layer of strain on state laboratories like North Carolina’s.

“That does shift the burden to the states and where we have to look at testing that was previously done in Atlanta,” Shone noted. “Is that something we now need to pick up here in Raleigh and is that funded?”

The timing of the funding freeze is especially frustrating for public health leaders, given the significant progress made since the early days of the COVID-19 pandemic. Much of the expansion and renovation work now on hold was initiated in direct response to the shortcomings the pandemic exposed.

“All of this work started with COVID, but it’s addressing these long-standing infrastructural challenges in public health and public health laboratory sites,” said Shone.

Renovation efforts at the State Health Lab began in earnest in 2021, with the most recent phase of construction starting in October 2024. That final stretch of improvements was intended to complete a years-long transformation of the facility into a modern, responsive hub for public health diagnostics.

With construction suspended, state officials are exploring alternatives to keep the project on track. Options being considered include potential legal action to challenge the federal cuts and appeals to state lawmakers to fill the funding gap.

For now, the fate of the project—and its role in protecting North Carolinians from future health threats—remains uncertain.

Originally reported by Russ Bowen in CBS 17.