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A Sudden End to Vital Health Grants

USAWednesday, January 14, 2026
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The Trump administration has made a sudden and significant change, canceling numerous federal grants that support addiction and mental health services. The cuts could total $2 billion, according to three sources, though the news remains unconfirmed.

Nonprofits Face Immediate Termination of Funding

Many nonprofits received letters stating their grants were ending immediately. These organizations provide critical services to individuals struggling with addiction, homelessness, and mental illness. One source warned that programs could close as soon as tomorrow.

Ryan Hampton, founder of Mobilize Recovery, lost $500,000 overnight. He called the move cruel, warning it would cost lives. Recovery centers are shutting down, and the safety net for vulnerable populations is being severely weakened.

Grants No Longer Align with Administration's Priorities

The termination letters claimed the programs no longer fit the administration’s priorities. The Substance Abuse and Mental Health Services Administration (SAMHSA) is reshaping the national health system, which includes ending certain grants. The cuts began on January 13th, and no further funding will be allowed after that date.

Widespread Impact on Behavioral Health Services

The National Association of County Behavioral Health and Developmental Disability Directors estimates that over 2,000 grants are affected. The full impact is still being assessed.

Additional Cuts to Medicaid Funding

This is not the only recent cut. Last year, Congress passed deep Medicaid cuts, which also impact mental health and addiction care providers. Advocates fear the safety net for those in crisis may unravel.

Experts Warn of Life-Threatening Consequences

Regina LaBelle, a Georgetown University professor, emphasized that these grants fund life-saving services, from first responders to drug courts. Federal funding is crucial in combating the overdose epidemic, which remains a public health emergency. With overdose deaths finally decreasing, she argues that now is not the time to cut funding.

No Response from SAMHSA or HHS

Neither SAMHSA nor the Department of Health and Human Services (HHS) responded to requests for comment.

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