The White House has abruptly canceled hundreds of federal grants supporting mental health and substance use disorder treatment services nationwide, NPR first reported Jan. 14.
The Substance Abuse and Mental Health Services Administration sent termination notices to hundreds of grant recipients late on Jan. 13. While the exact scale of funding cuts was not immediately clear, sources told NPR they believe more than 2,000 grants were canceled, amounting to as much as $2 billion.
Becker’s has reached out to SAMHSA for comment and to confirm the total number of grants and funding terminated.
Many grant recipients were nonprofit organizations, offering street-level care to people experiencing substance use disorders, mental health issues and homelessness, according to the report.
In termination letters reviewed by NPR, federal officials highlighted efforts to restructure SAMHSA’s grant program to better align with the Trump administration’s priorities, which includes award terminations.
Grants terminations took effect Jan. 13, and “costs resulting from financial obligations incurred after termination are not allowable,” the letter says.
The grant cuts could force community mental health and addiction programs to close or sharply reduce services immediately, leading to an increase in overdoses and other preventable emergencies, nonprofit leaders told NPR.
Combined with upcoming Medicaid reductions under the One Big Beautiful Bill Act, the grant cancellations could further erode community-based behavioral health capacity and increase pressure on hospitals through higher emergency department use, more uncompensated care and harder-to-place behavioral health patients.
The White House did not immediately respond to NPR‘s request for comment.
