Mental Health Grants Cut Then Restored in 24 Hours: Leading Organizations React to Environment of Uncertainty
Key Takeaways
- The abrupt $2 billion grant cut affected 2,000 organizations, causing immediate disruption and concern in mental health services.
- Advocacy groups and lawmakers swiftly opposed the cuts, leading to a rapid reversal and restoration of funding.
Government funding cuts to mental health and addiction programs create chaos, prompting swift restoration amid widespread concern from advocacy groups. Read the statement from the AFSP here.
On late Tuesday January 13, the government cut off approximately $2 billion in federal grant money for national mental health and addiction programs, per an announcement from the Substance Abuse and Mental Health Services Administration (SAMHSA).1 Then, in a rapid reversal, they restored the money on Wednesday night. This chaotic 24-hour period sent shockwaves through the country’s public health system, especially those that relies on grant funding.2
This decision impacted approximately 2000 organizations and 2706 discretionary grants.3 Leading mental health organizations have raised their voices and shared statements expressing their deep concern over the cuts and called for the restoration of the grants. Laurel Stine, the executive vice president and chief advocacy and policy officer at the American Foundation for Suicide Prevention (AFSP), has shared such a statement with Psychiatric Times, provided here:
“As the nation’s largest suicide prevention organization, we are deeply concerned by the abrupt termination—and rapid reversal—of up to $2 billion in critical federal mental health and suicide prevention grants administered through SAMHSA.
Hundreds of community organizations and front-line providers received termination letters ending their federal funding, effective immediately. These cuts would have impacted suicide prevention programs and behavioral health support—initiatives that Congress has largely prioritized on a bipartisan basis. The widespread ramifications of the cuts were immediate and created uncertainty, destabilized staff, interrupted services, and placed patient care at risk. Communities already facing high suicide rates and deepening mental health needs were left in crisis overnight.
Following swift backlash from national advocacy organizations, service providers and lawmakers, SAMHSA backtracked its decision within 24 hours and announced plans to fully restore the grants.
While AFSP is relieved by this reversal, the disruption underscores that behind every grant is a community counting on consistent, reliable lifesaving care—often in places where alternatives simply do not exist.
AFSP remains committed to increasing access to mental health care, supporting vulnerable communities, and advocating for stable, reliable investments that save lives. Together, we must ensure no community is left without the support it needs.”
This statement echoes the sentiments of other leading organizations, such as the American Medical Association (AMA) and the National Alliance on Mental Illness (NAMI).
“At a time when patients already face too many barriers to care, sudden funding disruptions risk leaving them without the support and treatment they urgently need,” shared the AMA.4
“These cuts are disheartening and cruel, and they threaten the life-saving work of hundreds of organizations that provide critical mental health support across the United States. Addressing our mental health and substance use crises in this country has never been political, which is why it continues to have bipartisan support in Congress. These abrupt and unjustified cuts will immediately disrupt suicide prevention efforts, family and peer recovery support, overdose prevention and treatment, and mental health awareness and education programming, along with so many more essential services, putting an unknown number of lives at stake. These aren’t just numbers on paper. These are decisions that have real and harmful consequences for millions of people and communities around the country,” said NAMI’s chief executive officer, Daniel H. Gillison, Jr.5
These messages reached members of Congress, leading to both Republican and Democratic lawmakers urging for a reversal of the decision. House Appropriations Ranking Member Rep. Rosa DeLauro shared the following statement: “After national outrage, Secretary Kennedy has bowed to public pressure and reinstated $2 billion in SAMHSA grants that save lives. These are cuts he should not have issued in the first place.”6
Official notices of restoration began reaching impacted organizations on the morning of Thursday January 15. A letter sent by SAMHSA to a clinician in upstate New York, shared that the termination of funding should be disregarded: "Your award will remain active under its original terms and conditions. Please disregard the prior termination notice and continue program activities as outlined in you award agreement."2
Yngvild Olsen, MD, MPH, an addiction treatment physician who served as the director for the Center for Substance Abuse Treatment until July 2025, told NPR that this decision raises questions about who in the federal government is responsible for making key public health decisions: "My understanding is that much of the staff at SAMHSA was caught unaware. These were decisions made without the input of experts in these programs and experts in this [addiction and mental health] field."2
Who decided to eliminate these grants is unclear, but the termination letters did share that the impacted programs no longer "aligned" with the Trump administration's public health agenda.2 While the restoration of funding offered relief, the situation has created what one source called “an environment of uncertainty” for all who accept federal grants.
References
1. Mann B. Trump administration sends letter wiping out addiction, mental health grants. NPR. January 14, 2026. Accessed January 21, 2026.
2. Mann B. 24 hours of chaos as mental health grants are slashed then restored. NPR. January 15, 2026. Accessed January 21, 2026.
3. Czachor EM, Lynch SN, Kaplan M. Trump administration reverses sudden cuts to grants for mental health and addiction treatment programs. CBS News. Updated January 15, 2026. Accessed January 21, 2026.
4. Aizuss DH. AMA statement on federal grant terminations for mental health, SUD care. AMA. January 14, 2026. Accessed January 21, 2026.
5. NAMI reacts to abrupt termination of SAMHSA grants. NAMI. January 14, 2026. Accessed January 21, 2026.
6. DeLauro statement on HHS reinstating billions in addiction and mental health grants after abrupt cancellation. January 14, 2026. Accessed January 21, 2026.
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