* NPR…

The Trump administration sent shockwaves through the U.S. mental health and drug addiction system late Tuesday, sending hundreds of termination letters, effective immediately, for federal grants supporting health services.

Three sources said they believe total cuts to nonprofit groups, many providing street-level care to people experiencing addiction, homelessness and mental illness, could reach roughly $2 billion. NPR wasn’t able to independently confirm the scale of the grant cancellation. The U.S. Substance Abuse and Mental Health Services Administration (SAMSHA) didn’t respond to a request for clarification.

Ryan Hampton, the founder of Mobilize Recovery, a national advocacy nonprofit for people in and seeking recovery, told NPR his group lost roughly $500k “overnight.” […]

According to the letter, grants are terminated as of yesterday, Jan.13, adding that “costs resulting from financial obligations incurred after termination are not allowable.” […]

This move comes on top of deep Medicaid cuts, passed last year by the Republican-controlled Congress, which effect numerous mental health and addiction care providers.

We’ve started to reach out to Illinois officials and providers, so this post will likely be updated.

* STAT…

One high-level SAMHSA source told STAT that the agency’s staff were not aware of the cuts, which were not planned in consultation with agency staff or announced internally.

In letters informing grantee organizations of the funding cuts, SAMHSA said it was canceling grants to better align its spending with agency priorities, and informed recipient organizations that the decision was final. Documents reviewed by STAT showed that the cuts affect organizations providing a broad array of services, including comprehensive opioid treatment; addiction care for people experiencing homelessness; helping adults transition out of prison; and more.

The cuts did appear to spare certain programs, however, like Certified Community Behavioral Health Clinics, specialized facilities that offer 24/7 mental health and addiction care.

In its first year in power, the Trump administration has decimated SAMHSA, laying off hundreds of staffers and gutting entire teams devoted to school-based mental health or overseeing grant programs that worked to advocate for the rights of adults with serious mental illness. In 2025, the agency already terminated roughly $2 billion in grants for state behavioral health programs and overdose prevention.

* The Bulwark…

Rep. Paul Tonko, a New York Democrat who has been leading efforts to document and spotlight Trump administration attacks on mental health services, denounced the cuts in a statement that his office provided to me. […]

Tonko went on to note that the grants come from money that Congress already appropriated, and that are part of the agency’s budget—producing yet another instance of the Trump administration defying Congress by refusing to spend money it has approved.

“The cancellations were to bipartisan grants already approved by Congress and the President himself that cover programs from youth overdose prevention to prenatal and postpartum care for women,” Tonko said.

…Adding… US Sen. Dick Durbin…

U.S. Senate Democratic Whip Dick Durbin (D-IL) today released the following statement after the Trump Administration terminated an estimated $2 billion in grant funding from the Substance Abuse and Mental Health Services Administration (SAMHSA) to treat addiction, mental health, and provide homelessness services. The grant cuts also affect Durbin’s longstanding bipartisan priorities to address childhood trauma and bolster rural ambulance services. Durbin’s office was notified by Illinois constituents last night about these abrupt grant termination letters.

“President Trump’s war on drugs will take more than a new President in Venezuela. Last night’s termination of addiction treatment is a step backwards that will cost lives. Other cuts to mental health treatment and EMS services show this Administration is more interested in building White House ballrooms than life-saving clinics.”

Despite the Trump Administration’s claims about prioritizing opioid and fentanyl overdoses, or the mental health of children, the elimination of funding for suicide prevention and addiction treatment services across the country will risk lives and harm the economy.

The Trump Administration’s grant termination directly affects Durbin and U.S. Senator Shelley Moore Capito’s (R-WV) Resilience Investment, Support, and Expansion (RISE) from Trauma Act, bipartisan legislation to increase support for children who have been exposed to Adverse Childhood Experiences (ACEs) and trauma, including witnessing community violence, parental addiction, or abuse.

These cuts also affect Durbin and U.S. Senator Susan Collins’ Supporting and Improving Rural EMS Needs (SIREN) Reauthorization Act, legislation that supports rural EMS agencies in training and recruiting staff, conducting certification courses, and purchasing equipment, including naloxone to address the opioid overdose epidemic.

…Adding…The termination letter sent to providers…

Funding for the referenced award is hereby terminated pursuant to 2 C.F.R. § 200.340(a)(4). This letter constitutes a notice of termination, effective January 13, 2026.

Pursuant to the terms of the award and 2 C.F.R. § 200.340(a)(4), SAMHSA may terminate a federal award, “to the extent authorized by law, if an award no longer effectuates the program goals or agency priorities.”

SAMHSA’s current priorities, https://www.samhsa.gov/about/strategic-priorities, include focusing agency resources on promoting innovative programs and interventions that address the rising rates of mental illness and substance abuse conditions, overdose, and suicide and their connections to chronic diseases, homelessness, and other challenges our Nation’s communities face. A key component of this effort is innovations in grant making – developing grants tailored to states and communities that provide services and supports to effect immediate and positive health changes in the people and communities we serve; and to measure our success. As a result, SAMHSA is adjusting its discretionary award portfolio, which includes terminating some of its awards, in order to better prioritize agency resources towards the above-mentioned priorities.

Although in its discretion SAMHSA may suspend (rather than immediately terminate) an award to allow the recipient an opportunity to take appropriate corrective action before SAMHSA makes a termination decision, after review and consideration, no corrective action is possible here since no corrective action could align the award with current agency priorities.

Costs resulting from financial obligations incurred after termination are not allowable other than in accordance with 2 CFR § 200.472 or as may be provided in further instruction from the agency.

Nothing in this notice excuses either SAMHSA or you from complying with the closeout obligations imposed by 2 C.F.R. §§ 200.344-200.345. Consistent with 2 C.F.R. 200.344, you will have 120 days from the effective date of termination to liquidate all financial obligations incurred prior to termination of this award.

Christopher D. Carroll
Principal Deputy Assistant Secretary

Emphasis added.