Democrat blasts HHS for creating confusion in cutting, then reinstating SAMHSA grants

Health and Human Services Reverses Course on $2 Billion Mental Health and Substance Abuse Grant Cuts

In a dramatic reversal, the Department of Health and Human Services has reinstated nearly $2 billion in substance abuse and mental health grants just one day after abruptly canceling them, leaving healthcare providers and advocacy groups scrambling.

The sudden policy shift drew sharp criticism from top Democrats, including House Appropriations Committee Ranking Member Rep. Rosa DeLauro (D-Conn.), who condemned Health Secretary Robert F. Kennedy Jr.’s approach as “dangerous and haphazard.”

“He must be cautious when making decisions that will impact Americans’ health,” DeLauro said in a statement Wednesday. “I hope this reversal serves as a lesson learned.”

The Substance Abuse and Mental Health Services Administration (SAMHSA), an HHS sub-agency, had initially canceled approximately 2,000 grants on Tuesday evening via emailed notices, according to an administration official not authorized to discuss the cuts publicly. By Wednesday evening, numerous media outlets reported the administration was walking back those cuts.

The sudden reversal came too late for some organizations that had already taken drastic measures in response to the funding loss. Several grant recipients told The Associated Press they had begun laying off employees and canceling scheduled trainings before learning their funding might be reinstated.

As of late Wednesday, many affected organizations reported they had not yet received official notification that their grants would be continued, leaving them in a state of uncertainty. HHS spokespeople did not respond to requests for comment on the reason for the policy reversal.

The original cancellations had represented about a quarter of SAMHSA’s overall budget and threatened to undermine a wide range of critical mental health and substance abuse programs nationwide. The cuts would have eliminated funding for direct mental health services, opioid treatment, drug prevention resources, peer support programs, and services for communities affected by addiction, mental illness, and homelessness.

“Without that funding, people are going to lose access to lifesaving services,” said Yngvild Olsen, former director of SAMHSA’s Center for Substance Abuse Treatment and a national adviser at Manatt Health, speaking earlier Wednesday.

The grant termination notices, signed by SAMHSA Principal Deputy Assistant Secretary Christopher Carroll, had cited a regulation allowing the agency to terminate federal awards that “no longer effectuates the program goals or agency priorities.” This justification left many recipients confused, as they believed their work directly aligned with SAMHSA’s stated mission.

Jamie Ross, CEO of the Las Vegas-based PACT Coalition, which temporarily lost funding from three grants totaling $560,000, expressed bewilderment at the initial decision. “The goal of our grants is entirely in line with the priorities listed in that letter,” Ross said.

The funding cuts appeared to focus primarily on Programs of Regional and National Significance, according to the National Association of County Behavioral Health and Developmental Disability Directors. The association noted that certain block grants, funding for the 988 suicide and crisis lifeline, and Certified Community Behavioral Health Clinics were apparently spared from the cuts.

Robert Franks, CEO of the Boston-based Baker Center for Children and Families, had been facing the loss of two federal grants totaling $1 million. One supported the National Child Traumatic Stress Initiative, a more than 20-year-old program providing specialized care for children who have experienced traumatic events ranging from sexual abuse to school violence.

“Our work directly advances SAMHSA’s goals to address mental illness,” Franks said Wednesday afternoon, before the reported reinstatements. He emphasized that trauma care provided through his organization helps people from all backgrounds while reducing burdens on other parts of society.

The mental health funding turmoil comes amid other wide-ranging cuts at HHS, including the elimination of thousands of jobs and the freezing or cancellation of billions of dollars earmarked for scientific research. These rapid policy shifts have created an atmosphere of uncertainty throughout the mental health and substance abuse treatment sectors, which are already struggling to meet growing demand for services amid ongoing opioid and mental health crises.

As of late Wednesday, organizations were still awaiting official confirmation of the grant reinstatements, leaving many providers and the vulnerable populations they serve in a precarious position.