Trump Cuts $2 Billion in Mental Health and Addiction Grants
President Donald Trump’s administration has moved to cancel nearly $2 billion in federal funding for mental health and substance use services, triggering alarm among treatment providers and advocates across the United States. The cuts target thousands of grants administered by the Substance Abuse and Mental Health Services Administration (SAMHSA), affecting programs that serve people with serious mental illness, opioid use disorder, and other substance use conditions.
Notices Went Out Late
Termination notices were sent late Tuesday to grant recipients around the country, giving programs little to no time to prepare for the loss of support. Many organizations say they learned of the change only when emails or faxes arrived after business hours, with letters stating that grants were terminated effective January 13 and that costs incurred after that date would not be reimbursed.
Scope of the Funding Loss
Early estimates from national behavioral health associations suggest that more than 2,000 grants, and possibly as many as 2,700, have been canceled, with total losses approaching $1.9–$2 billion—more than a quarter of SAMHSA’s discretionary grant portfolio. The affected grants include funding for overdose prevention and naloxone training, community-based addiction treatment, mental health programs in schools, street outreach to people who are homeless, and reentry services for people leaving jail and prison.
Administration’s Rationale
In the termination letters, officials say the decision is intended to “better prioritize agency resources” and align spending with new priorities focused on rising rates of mental illness, addiction, overdoses, and suicide. The letters cite federal rules that allow awards to be ended when they no longer advance agency goals, and they stress that the decision is final.
Fallout for Providers and Patients
Service providers warn that the abrupt cancellations will force staff layoffs, program closures, and the reduction or suspension of life‑saving services, particularly for low‑income and high‑risk patients. Some large nonprofits report losing millions of dollars overnight for initiatives such as training clinicians in evidence‑based addiction treatment, supporting people in recovery to find housing and work, and educating school personnel to recognize mental health crises among students.
Advocates argue that the timing is especially dangerous, as overdose deaths remain at historically high levels and demand for mental health care continues to outstrip available services. They warn that the combined impact of these cuts and earlier Medicaid reductions could unravel key parts of the nation’s behavioral health safety net.
Political and Legislative Response
Lawmakers from both parties who helped secure recent behavioral health funding say the move appears to contradict congressional intent. Members of Congress on addiction and mental health committees have pledged to press the administration for answers and to seek restoration of the grants in upcoming federal spending negotiations later this month.