In a sudden and sweeping move, the administration of former President Donald Trump has slashed funding for critical substance abuse and mental health programmes across the United States. Advocates warn the decision will endanger the lives of some of the nation's most vulnerable citizens.
Immediate Termination of Vital Grants
On Tuesday 13 January 2026, the Substance Abuse and Mental Health Services Administration (SAMHSA) cancelled approximately 2,000 discretionary grants, pulling back nearly $2 billion in funding. This represents about a quarter of the agency's total budget. An administration official, unauthorised to speak publicly, confirmed the scale of the cuts to The Associated Press.
Notification was delivered via email on Tuesday evening to shocked grant recipients. The letters, signed by SAMHSA Principal Deputy Assistant Secretary Christopher Carroll, cited a regulation allowing termination of awards that "no longer effectuate the program goals or agency priorities." Recipients expressed confusion, stating their work directly aligned with SAMHSA's stated aims.
Services and Jobs in Immediate Jeopardy
The funding withdrawal places a wide array of essential services in immediate peril. These include direct mental health support, opioid addiction treatment, drug prevention resources, and peer support for communities grappling with addiction, mental illness, and homelessness.
"Without that funding, people are going to lose access to lifesaving services," said Yngvild Olsen, former director of SAMHSA’s Center for Substance Abuse Treatment. "Providers are going to really need to look at potentially laying off staff and not being able to continue."
Organisations began reacting on Wednesday 14 January. The Las Vegas-based PACT Coalition, focused on substance use issues, lost three grants totalling $560,000. CEO Jamie Ross said their goals were entirely in line with SAMHSA's priorities.
Personal and Community Impact
The human cost of the decision is stark. Robert Franks, of the Boston-based Baker Center for Children and Families, said the loss of $1 million in grants will force staff layoffs and jeopardise care for around 600 families. One cancelled grant supported the National Child Traumatic Stress Initiative, a decades-old programme aiding children who have suffered trauma.
For Honesty Liller, CEO of Virginia's McShin Foundation, the loss of $1.4 million is deeply personal. The peer support organisation saved her life from heroin addiction 18 years ago. She has already laid off five staff, reducing their capacity to help incarcerated people recovering from substance abuse. "I've just never felt so gut punched," Liller said.
The National Association of County Behavioral Health Directors indicated the cuts largely targeted "Programs of Regional and National Significance." They noted that certain block grants, 988 suicide lifeline funding, and Certified Community Behavioral Health Clinics may have been spared.
The Department of Health and Human Services did not respond to requests for comment. Two SAMHSA sources said staff were not widely notified of the agency's drastic action, which was first reported by NPR.
