Sweeping Cuts to Substance Abuse and Mental Health Programs Spark Concern Nationwide

Immediate Impact on Critical Services

The cuts put mental health services, opioid treatment, drug prevention, peer support, and other vital programs at risk. “Without that funding, people are going to lose access to lifesaving services,” said Dr. Yngvild Olsen, former director of SAMHSA’s Center for Substance Abuse Treatment and now a national advisor at Manatt Health. Consequently, providers must consider layoffs and service reductions.

Agency Priorities and Grant Cancellations

SAMHSA, a division of HHS, sent emails to grant recipients ending their funding immediately. Principal Deputy Assistant Secretary Christopher Carroll signed the letters and cited a regulation that allows SAMHSA to end awards that “no longer effectuate the program goals or agency priorities.” However, many recipients disagreed, insisting their work matches the agency’s priorities.

“The goal of our grants is entirely in line with the priorities listed in that letter,” said Jamie Ross, CEO of the Las Vegas-based PACT Coalition, which lost $560,000 across three grants. HHS did not reply to requests for comment. Some SAMHSA staff also reported receiving no advance notice.

Programs and Communities at Risk

Organizations reported immediate layoffs and training cancellations due to the cuts. Now, many groups must seek alternative funding or plan service shutdowns. For example, Robert Franks, CEO of the Baker Center for Children and Families in Boston, said losing two federal grants totaling $1 million will force staff reductions and threaten care for about 600 families. One canceled grant supported the National Child Traumatic Stress Initiative, which helps children who survive trauma.

Franks emphasized his organization’s work directly supports SAMHSA’s mission and benefits society. “These programs are probably our most effective tool in addressing the issues they identify as being critical,” he said, expressing confusion about the decision.

Details on Affected Grants and Remaining Funding

The National Association of County Behavioral Health and Developmental Disability Directors told members that most rescinded grants were Programs of Regional and National Significance. They estimated about 2,000 grants, or $2 billion, were affected. However, block grants, 988 suicide and crisis lifeline funding, and Certified Community Behavioral Health Clinics appear to be safe from cuts.

Personal Impact and Community Voices

For Honesty Liller, CEO of the McShin Foundation in Richmond, Virginia, losing about $1.4 million in funding feels personal. Liller credits the organization, which helps people in recovery, with saving her life from heroin addiction. The canceled grant already forced five staff layoffs and will lower the number of peers supporting incarcerated people in recovery. “They need hope dealers like us, they need people with lived experience in recovery, and they need this funding,” Liller said. “I’ve just never felt so gut punched.”