SAMHSA Terminates $2 Billion Grant Funding, Quickly Rescinds Terminations

On Tuesday evening, the Substance Abuse and Mental Health Services Administration (SAMHSA) sent letters to grantees of approximately $2 billion in federal discretionary funding for mental health and addiction programs across the country. The unexpected letters claimed that the awarded funds were terminated immediately due to “non-alignment” with SAMHSA’s strategic priorities.  

The termination letters sparked widespread confusion and alarm as service providers, advocacy groups, and other stakeholders sought to gather information on the full scope of impacted programs. Additionally, many of terminated grants were already underway, supporting vital behavioral health programs and staff positions.  

However, after widespread and bipartisan pushback to the abrupt terminations, officials from the Department of Health and Human Services confirmed late Wednesday evening that the termination decision is being reversed and grants are being restored. The National Association of Counties (NACo) has shared that counties who received termination notices should not expect an interruption in funding and may continue to providing services under the existing awards. County behavioral health departments that received the initial termination notices subsequently received notifications that the funds were being restored.