White House reverses $2B cuts to mental health, addiction grants

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The White House has reversed the terminations of 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 move spurred significant pushback from lawmakers and leaders at nonprofit organizations that provide day-to-day mental health and addiction care, who warned the abrupt loss of funding could leave vulnerable populations without access to critical services.

“These programs help physicians and communities provide lifesaving, evidence-based care, and losing this funding would make it harder for patients to access critical services such as medications for opioid use disorder, naloxone, and mental health treatment, especially in rural and underserved areas,” AMA Trustee David Aizuss, MD, said in a Jan. 14 statement. “These programs are also essential to educating and training physicians and care teams to meet the needs of patients with these illnesses. At a time when patients already face too many barriers to care, sudden funding disruptions risk leaving them without the support and treatment they urgently need.”

The White House did not immediately respond to NPR‘s request for comment.

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