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HHS terminates, then reinstates, thousands of grants for substance use, mental health

The Department of Health and Human Services initially cut nearly $2 billion affecting about 2,000 grants but reversed many within a day amid confusion and concern over priorities.

  • On Jan. 13, the Substance Abuse and Mental Health Services Administration terminated multiple congressionally‑appropriated grants, sending termination letters to Illinois nonprofit organizations and hundreds of grantees nationwide.
  • SAMHSA said it is terminating some awards to better prioritize resources toward innovative programs addressing rising mental illness and overdose, despite nearly $2 billion in grants ending amid bipartisan congressional support.
  • Haymarket Center reported losing all three federal grants Wednesday morning that funded substance use services, while Illinois Department of Human Services warned two grant terminations could cost millions annually.
  • Providers warned the cuts will immediately disrupt suicide prevention and overdose treatment programs, and the Illinois Department of Human Services Division of Behavioral Health & Recovery, Director David Albert, said they are exploring all appropriate actions, including legal action.
  • NAMI and advocates urged Congress to reverse the terminations and contact lawmakers, warning these cuts harm millions of Americans dependent on mental health and substance use services.
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Confusion erupts in mental health and substance abuse programs as HHS cuts, then reinstates grants

Providers, state health agencies and others are feeling whiplash and confusion after the Trump administration eliminated and then abruptly reinstated grants that support substance abuse and mental health programs nationwide.

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Politico broke the news in on Wednesday, January 14, 2026.
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