White House Reverses Proposed $2 Billion Cut to Addiction and Mental Health Grants

On January 14th, the White House reversed a $2 billion cut to federal grants supporting addiction treatment, overdose prevention, and mental health services, after widespread concern from lawmakers, providers, and grantees across the country.

Earlier this week, Substance Abuse and Mental Health Services Administration (SAMHSA) grantees were notified that their grants would be abruptly terminated, effective immediately. The notices cited “non-alignment with SAMHSA priorities” and left thousands of programs uncertain about their ability to continue providing services.

By Wednesday evening, administration officials confirmed that the grant terminations were being rescinded. Senator Tammy Baldwin (D-WI.), the ranking member of the Senate Labor-HHS-Education Appropriations Subcommittee, said there had been an “intervention” at the White House to halt the cuts.

The proposed funding rollback came at a time when overdose deaths have begun to decline nationally, underscoring the role that sustained investment in evidence-based treatment and prevention plays in saving lives. Providers also noted that the uncertainty compounded ongoing workforce shortages and financial strain already facing addiction and mental health systems.

While the reversal restores funding for now, advocates and service providers remain concerned about the broader instability created by sudden policy shifts. Programs serving people with substance use disorders and serious mental illness depend on predictable, long-term funding to maintain staff, deliver care, and respond to community needs.

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