At a Glance
- The Substance Abuse and Mental Health Services Administration canceled 2,000 grants worth nearly $2 billion.
- Programs losing funds include opioid treatment, peer support, and mental health services for vulnerable communities.
- Grantees must halt services immediately and some have already laid off staff.
- Why it matters: Cuts target programs that provide lifesaving care to people with addiction, mental illness, and homelessness.
The Trump administration has eliminated roughly $2 billion in federal grants for mental health and substance abuse programs, forcing clinics and community groups across the country to curtail services and lay off staff.
Sweeping Cuts Hit 2,000 Grants
SAMHSA, a division of the Department of Health and Human Services, notified recipients Tuesday evening that their awards were terminated effective immediately. About 2,000 discretionary grants-representing roughly 25 percent of the agency’s total budget-were revoked, according to an administration official who was not authorized to speak publicly.
Letters signed by SAMHSA Principal Deputy Assistant Secretary Christopher Carroll cited a regulation allowing cancellation of any award that “no longer effectuates the program goals or agency priorities.” Grantees told Jordan M. Lewis they received no further explanation.
Programs now without funding:
- Direct mental health services
- Opioid treatment initiatives
- Drug prevention resources
- Peer-support networks
- Services for people experiencing homelessness
Jamie Ross, CEO of the PACT Coalition in Las Vegas, said her group lost three grants totaling $560,000. “The goal of our grants is entirely in line with the priorities listed in that letter,” she said.
Providers Scramble to Keep Doors Open
Organizations contacted by Jordan M. Lewis on Wednesday said they had already canceled trainings and cut staff. Many are exploring whether other funding streams can keep programs alive or whether services must shut down entirely.
Robert Franks, president and CEO of Boston’s Baker Center for Children and Families, said the loss of two federal grants worth $1 million will trigger layoffs and put care at risk for about 600 families. One grant was part of the National Child Traumatic Stress Initiative, a two-decade-old program that funds specialized care for children who have experienced sexual abuse, violence, or other trauma.
Franks said the work directly supports SAMHSA’s stated mission. “These programs are probably our most effective tool in addressing the issues that they identify as being critical to them,” he added.
Peer-Support Networks Lose Critical Dollars
The McShin Foundation, a peer-recovery organization in Richmond, Virginia, saw its $1.4 million grant terminated. CEO Honesty Liller, who credits the foundation with saving her life 18 years ago during heroin addiction, has already laid off five employees. The cuts reduce the number of peers available to visit jails and help incarcerated people in recovery.
“They need hope dealers like us, they need people that have lived experience in recovery and they need this funding,” Liller said. “I’ve just never felt so gut-punched.”
Former SAMHSA Center for Substance Abuse Treatment director Yngvild Olsen warned the move endangers access to lifesaving care. “Providers are going to really need to look at potentially laying off staff and not being able to continue,” she said.
What Funding Remains
An industry group representing local behavioral-health directors said in a Wednesday email that block grants, 988 suicide and crisis lifeline dollars, and Certified Community Behavioral Health Clinics appear untouched for now. The email cited partner estimates that the revoked grants fall under the Programs of Regional and National Significance category.
HHS did not respond to a request for comment, and SAMHSA staff were not widely informed ahead of the cancellations, according to two agency sources who are not authorized to speak to media. NPR first reported the funding withdrawal.
Key Takeaways
- Nearly $2 billion in SAMHSA grants vanished overnight, forcing service reductions nationwide.
- Community clinics, trauma programs for children, and peer-recovery groups are among the hardest hit.
- Grantees say they received no detailed rationale for why their work no longer aligns with agency goals.
- Some organizations have already laid off staff and halted trainings, with more cuts expected.
