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Return to Asbestos BlogNearly two decades after federal health authorities officially acknowledged the town’s public health disaster, its health clinic has shut its doors.
The town of Libby, Montana, has long stood as one of the most disturbing examples of environmental asbestos exposure in the United States.
Unfortunately it has returned to the public spotlight in the form of Federal defunding threats and purported mismanagement of a health clinic set up to address the asbestos issue and the many people affected by it.
The Center for Asbestos Related Disease (CARD), which for years provided screenings, diagnoses, and support for victims of asbestos-related illnesses, was forced to close in early May 2025. The closure followed a $3.1 million court judgment in favor of BNSF Railway and the seizure of the clinic’s property by the Lincoln County Sheriff.
As residents and public health advocates reel from the loss, many are asking how a clinic founded to address one of the deadliest environmental crises in U.S. history was left vulnerable to collapse. To understand the current situation, we have to revisit how Libby became a cautionary tale of what can happen when progress trumps safety checks, and what this latest development could mean for asbestos exposure victims across the country.
The Libby Crisis: A Brief Background
Libby’s health crisis stems from the mining and processing of vermiculite, which is a naturally occurring mineral once prized for its insulation properties. From the 1920s to 1990, the vermiculite mine just outside Libby was operated by various companies, most notably WR Grace & Co.
Asbestos-Contamination in Vermiculite
The problem? The vermiculite from Libby was contaminated with tremolite asbestos, an especially dangerous form of the mineral. As the mine operated for decades, asbestos fibers spread in the air, soil, water, and even into the homes and family vehicles of miners who unknowingly brought the dust home on their work clothes and gear.
By the time the Environmental Protection Agency (EPA) responded in the late 1990s, hundreds of residents had already died from asbestos-related diseases, and thousands more had been exposed.
Eventually, in 2009, Libby was declared the site of the first public health emergency in EPA history. Cleanup efforts have since cost over $600 million since that time, and some of the deepest scars have been left on the not only on the landscape surrounding the mine, but on the people living nearby.
WR Grace & the Hidden History of Contamination
WR Grace, the former operator of the Libby vermiculite mine, is central to the much larger story of U.S. asbestos exposure over the years. Investigations and lawsuits have revealed that WR Grace knew about the asbestos contamination in its product as early as the 1960s but, like many other manufacturers at the time, decided to prioritize profits over safety and brush the devastating effects under the rug.
WR Grace Trust: Cover-Up and compensation for those injured by asbestos
Even though internal documents would eventually be revealed showing knowledge of cancer risks associated with asbestos, rather than warn the public, WR Grace ramped up production. The company ultimately declared bankruptcy, and amid these proceedings, established an asbestos trust to settle claims. However, for many Libby residents, that action came too late. The damage had already been done.
CARD Clinic’s Role in the Community
The Center for Asbestos Related Disease (CARD) was established to provide a dedicated resource for Libby residents and others exposed to asbestos from the contaminated vermiculite mine. The clinic worked closely with radiologists and specialists in asbestos-related diseases to evaluate and treat individuals suffering from asbestosis, mesothelioma, lung and ovarian cancer, and other related conditions.
Medicare and Asbestos Compensation
One of CARD’s standout roles was helping people access federal Medicare benefits even if they were under the typical age requirement. With a diagnosis from CARD, patients could qualify for special federal programs created specifically for Libby exposure victims. The clinic also played a key role in research, community education, and the preservation of Libby’s public health history.
In 2023, one of the companies found liable for transporting contaminated vermiculite, BNSF Railway, filed a lawsuit against CARD Clinic. The railway claimed that the clinic had issued false diagnoses in order to bill Medicare fraudulently.
A Montana jury sided with BNSF, ultimately awarding the company $3.1 million in damages. In early 2025, the court authorized the seizure of CARD’s property as part of satisfying the judgment, which led to the clinic’s abrupt closure on May 8.
The legal battle caused confusion and outrage among residents and advocates. CARD Director Tracy McNew stated the clinic would fight to reopen, pointing to the fact that the BNSF itself had been held liable for the original asbestos contamination in Libby.
What This Closure Means
The shuttering of CARD is more than just the loss of a building. Its abrupt exit cuts off access to specialized medical screenings and disrupts the federal benefits process for current and future patients. Libby residents who have relied on CARD for decades are now left scrambling. People like Gayla Benefield, who suffers from asbestosis and requires constant oxygen support, fear for others who may now go undiagnosed or untreated.
CARD’s federal funding, which makes up the bulk of its budget, is also in jeopardy. The Trump administration had already been reviewing the clinic’s grants as part of broader federal cost-cutting efforts. Without a functioning clinic, that money may disappear entirely, even if the clinic wins an appeal or regains access to its property.
With the agency’s absence, many in the community are left wondering how, and if, they’ll be able to continue receiving the care and support they once counted on.
In the broader scope of things, the lawsuit raises difficult questions about the intersection of environmental justice, corporate accountability, and medical oversight, especially pertaining to Superfund sites like Libby where industrial contamination has already ruined the area for generations to come.
The Future of Asbestos Litigation
The CARD Clinic lawsuit may mark a new era in asbestos litigation. Traditionally, cases focused on workers’ compensation, corporate negligence, or product liability. Now, courts are also seeing disputes over medical diagnoses, benefit eligibility, and trust fund disbursements.
Some asbestos trusts, set up by bankrupt companies like WR Grace, have faced scrutiny over the years for allegedly trying to reduce payouts by challenging claim validity or destroying old documents. As litigation evolves, so do predictions for its future. Experts suggest that environmental exposure claims may rise, particularly as awareness grows around non-occupational sources of asbestos.
At the same time, newer defendants may emerge, including transportation companies, retailers, and even public agencies. The legal terrain is shifting, and communities like Libby may once again find themselves at the heart of the battle.
Moving Forward
The closure of the CARD Clinic is a blow not just to Libby, Montana, but to the broader fight against asbestos exposure and corporate accountability.
While the legal system sorts through appeals and damages, families in Libby are left wondering where to turn for answers, diagnoses, or even basic health checkups.
Libby’s story is one of tragedy, resilience, and ongoing risk. It also serves as a reminder that the legacy of asbestos is far from over, and that communities still living in its shadow need consistent, compassionate, and well-funded support. For now, the CARD building may be closed, but the fight for justice, health care, and accountability continues, and there is still hope for a future filled with promise—and safer communities.
