On Tuesday evening, the White House sent hundreds of termination letters to federal grant recipients working in addiction recovery and mental health, according to NPR. Sources told the publication that the total amount cut could reach $2 billion.
The U.S. Substance Abuse and Mental Health Services Administration originally provided the affected grants. Many of the impacted grant recipients provide care to people experiencing addiction, homelessness and mental illness.
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Why did the administration cut the grants?
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More than 48 million Americans battled substance abuse in 2024, according to the American Addiction Centers.
While they have not publicly stated a reason for the decision, an NPR analysis of the letters stated that SAMHSA no longer believed the groups aligned with the administration’s goals.
The publication stated that the letter pointed to efforts to change the national health system by restructuring SAMHSA’s grant program. The letter noted that this “includes terminating some of its … awards.”
NPR reports that the terminations were effective Jan. 13. They also said that the letters specified that “costs resulting from financial obligations incurred after termination are not allowable.”
The cuts follow reductions to Medicaid that the Republican-controlled Congress passed late last year. Cuts to Medicaid were the reason Democrats refused to vote on the bill, which led to the longest shutdown in American history.
The Medicaid cuts affected several mental health and addiction care centers, according to NPR.
How will this impact addiction recovery groups?
NPR spoke to two people who received grant termination notices. One of the men, Andrew Kessler, heads Slingshot Solutions, a consultancy agency working with mental health and addiction recovery groups in the U.S.
Kessler said he saw several grant termination letters, which he said were from areas “all over the country.”
“We are definitely looking at severe loss of front-line capacity,” Kessler told NPR. “[Programs] may have to shut their doors tomorrow.”
Kessler went on to say that he and other care providers from across the country believe the safety net for those experiencing addiction or a mental health crisis is evaporating.
“In the short term, there’s going to be severe damage. We’re going to have to scramble,” he told NPR.
