SAMHSA cancels, reinstates thousands of behavioral health grants

Key Takeaways

Late on Wednesday, January 14, the Administration announced that thousands of Substance Abuse and Mental Health Services Administration (SAMHSA) grants that had been terminated just one day earlier would be reinstated. This reversal brings relief to county governments and local providers across the country who rely on these grants to deliver essential mental health and substance use disorder services. Counties that received termination notices should not expect an interruption in funding at this time and can continue providing services under their existing awards.

What happened

On Tuesday, January 13, SAMHSA sent grant termination letters to awardees across the country, informing them that their funding was being canceled effective immediately. It was estimated that more than 2,000 grants totaling over $2 billion were affected. The form letters cited “non-alignment with SAMHSA priorities” as the reason for termination and provided little additional explanation or guidance.

Many of the affected grants were already well underway, supporting active programs, staff positions and services for individuals and families in need of mental health care and substance use treatment. Grantees reported that the abrupt timing raised immediate questions about whether services would need to be paused, staff laid off or contracts renegotiated.

By Wednesday evening, following significant pushback from lawmakers and stakeholders, administration officials confirmed that the grant cancellations were being rescinded and that the affected SAMHSA grants would be restored. While details continue to emerge, the announcement clarified that the terminations were reversed after approximately 24 hours.

Impact on counties

Counties play a central role in the nation’s behavioral health system and serve as both recipients and administrators of SAMHSA grants. These federal funds support county-run and county-partnered programs that address mental health needs, prevent and treat substance use disorders, respond to overdoses, operate crisis services and expand access to care in underserved communities.

The brief cancellation, and subsequent reinstatement, underscores how dependent county service delivery systems are on reliable federal funding. Counties often braid SAMHSA dollars with local revenues, Medicaid funding and state grants to sustain comprehensive systems of care. Even short-term uncertainty can strain county budgets, disrupt planning and create challenges for maintaining a stable workforce in an already stretched behavioral health sector.

For residents, the stakes are high. SAMHSA-funded programs frequently serve individuals experiencing mental health crises, substance use disorders or co-occurring conditions, including people reentering communities from incarceration, youth and families, veterans and individuals in rural or underserved areas. Interruptions or instability in funding can delay care, reduce service availability and undermine progress counties have made to expand access and improve outcomes.

The reinstatement of these grants avoids immediate disruptions, but counties will continue to monitor how SAMHSA administers discretionary grant programs. Stable, transparent federal support is essential to sustaining the mental health and substance use services that residents depend on every day.