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Home Local News HHS Grant Reversal Sparks Turmoil in Mental Health and Substance Abuse Programs

HHS Grant Reversal Sparks Turmoil in Mental Health and Substance Abuse Programs

Confusion erupts in mental health and substance abuse programs as HHS cuts, then reinstates grants
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Published on 15 January 2026
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NEW YORK – Elizabeth Woike felt a glimmer of hope as news emerged that the nearly $2 billion in grants, previously revoked by the Trump administration from substance abuse and mental health programs, might be reinstated. Her optimism was short-lived, however, as an email from the Substance Abuse and Mental Health Services Administration at 2 a.m. on Thursday reiterated the funding cuts, leaving her in a state of confusion.

“I just shook my head. It’s mass chaos,” said Woike, who serves as the CEO of BestSelf Behavioral Health, a treatment provider for mental health and substance use disorders in Buffalo, New York. Fortunately, the subsequent message was sent in error, and by Thursday morning, Woike, along with around 2,000 other grant recipients nationwide, received confirmation that their federal funding had indeed been restored.

Woike’s rollercoaster of emotions over those two days reflects a broader experience shared by service providers, state health agencies, and the many Americans relying on these crucial programs. The Trump administration’s decision to first revoke and then suddenly reinstate these grants has sown confusion and uncertainty among those supporting some of the country’s most vulnerable populations.

Program directors express frustration over what they describe as a recurring pattern of unpredictability from the administration. This inconsistency, characterized by abrupt funding cancellations and unexpected policy reversals, leaves organizations like Woike’s struggling to formulate long-term plans and maintain stability in their operations.

It builds on what program directors say has become a pattern of uncertainty from this administration, which has repeatedly canceled millions of dollars in federal funding without notice and at times reversed course in decisions about what will and won’t be covered. Woike said the unsteadiness makes it impossible for organizations like hers to make long-term plans.

“No one’s looking at expansion or really trying to ramp up services to meet the need in the community,” she said. “Everyone is just retrenching, looking at putting aside every penny and every resource.”

Trump administration surprised grant recipients

The administration first notified grant recipients that their funding was being pulled in emailed letters Tuesday evening, according to copies received by organizations and reviewed by The Associated Press.

On Wednesday, several organizations told the AP they were already making difficult decisions in response to the cuts, including laying off employees and canceling scheduled trainings.

By Wednesday evening, news reports were suggesting the cuts might be reversed — but grant recipients hadn’t yet been notified of the change. Some of them said they instead received confusing emails overnight that duplicated their termination notices or instructed them on how to to close down their grants within 30 days.

It wasn’t until Thursday morning that grant recipients started getting form emails saying the grant terminations were “hereby rescinded.”

Even then, not everyone could rest easy. Sara Howe, CEO of the Addiction Professionals of North Carolina, said members of her professional association are still nervous about whether their funding is guaranteed.

“Any time this happens, you wind up in a position where you’re like, is it OK to breathe?” Howe said. “It puts everybody on really unsteady, shaky ground.”

An administration official with knowledge of the decision who was not authorized to speak publicly on the matter confirmed the grants were restored, but didn’t say why. A spokesperson for the Department of Health and Human Services didn’t answer a question about the administration’s reasoning and declined to comment on the confusion that resulted from the situation.

Democrats blast the administration

Democratic lawmakers erupted at the Trump administration for the uncertainty and stress they caused in cutting grants and then abruptly reversing course.

House Appropriations Committee Ranking Member Rep. Rosa DeLauro described Health Secretary Robert F. Kennedy Jr.’s decision-making as dangerous and haphazard after grant recipients began laying off employees based on the original plans.

“He must be cautious when making decisions that will impact Americans’ health,” DeLauro, D-Conn., said in a statement. “I hope this reversal serves as a lesson learned.”

Democratic Sen. Tammy Baldwin of Wisconsin told the AP in a statement that the episode “caused chaos and real harm to Americans — and now, they need to come clean and give families some answers why they caused this mess.”

Providers said they were hustling to undo changes they’d already made in response to the cuts. Honesty Liller, CEO of the peer support organization the McShin Foundation in Richmond, Virginia, said she was working on the logistics of getting five laid-off employees their jobs back.

Ryan Hampton, founder of the nonprofit advocacy organization Mobilize Recovery, said he was relieved the funding was restored to his and other organizations, but criticized the administration for endangering lifesaving services in the first place.

“Restoring these grants was the only acceptable outcome, yet the chaos inflicted on frontline providers and families these past 24 hours is unforgivable,” he said. “We cannot normalize a political environment where overdose prevention and recovery are treated as leverage.”

Copyright 2026 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.

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