Nonprofit addiction and mental health programs got an abrupt jolt Tuesday night when the Trump administration sent hundreds of letters canceling a sea of federal grants that fund treatment, outreach, and recovery services nationwide, according to nonprofit leaders and consultants. Sources who spoke to NPR estimate the total loss to nonprofits—including groups working with people experiencing addiction, homelessness, and serious mental illness—at close to $2 billion, though the outlet could not independently verify the figure. Sources tell STAT News that the cancelation affects up to 2,800 grants valued at $1.9 billion.
Andrew Kessler of Slingshot Solutions said he has seen termination notices from "all over the country" and warned of a "severe loss of front-line capacity," with some programs potentially closing "tomorrow." Ryan Hampton, who leads the national advocacy group Mobilize Recovery, said his organization lost about $500,000 "overnight." He said the larger move amounted to "cruelty," forcing front-line workers to "cease overdose prevention, naloxone distribution, and peer recovery services immediately" in the midst of a "raging crisis."
Letters reviewed by NPR say the Substance Abuse and Mental Health Services Administration no longer considers the defunded programs aligned with Trump administration priorities and describe the cuts as part of a broader effort to reshape the health system. However, a high-level employee at the agency tells STAT that staff were not consulted. The cutoff comes in the wake of earlier Medicaid reductions and the termination of roughly $2 billion in grants for state health programs and overdose prevention last year, per STAT. By June, canceled research grants totaled more than $12 billion, affecting research on treatments for cancer, tuberculosis, and other deadly diseases. per PBS.
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