Roughly 2,000 recipients of federal mental health and substance use disorder grants were briefly notified their funding had been terminated, only to later learn the grants had been reinstated, creating widespread confusion among providers and state agencies.
Elizabeth Woike, CEO of BestSelf Behavioral Health in Buffalo, New York, said she initially felt hopeful when media reports suggested funding might be restored. But a 2 a.m. email Thursday from the Substance Abuse and Mental Health Services Administration (SAMHSA) again confirmed the cuts, followed later that morning by a correction rescinding the termination.
“It’s mass chaos,” Woike said. “No one’s looking at expansion… Everyone is just retrenching.”
The Department of Health and Human Services (HHS) sent initial termination notices by email on Tuesday evening. By Wednesday, organizations had begun initiating layoffs and canceling programs. Late Wednesday, media reports indicated a reversal, but many recipients continued receiving conflicting or duplicate termination messages overnight.
On Thursday morning, HHS sent a form message stating that the terminations were “hereby rescinded.”
An HHS official, who was not authorized to speak publicly, confirmed the restoration but did not provide a reason. HHS did not respond to questions about the cause of the error or internal decision-making.
Some grant recipients remain concerned about the long-term stability of their funding. Sara Howe, CEO of the Addiction Professionals of North Carolina, said the uncertainty created lasting anxiety.
“Any time this happens, you wind up in a position where you’re like, is it OK to breathe?” Howe said.
Lawmakers have raised concerns about the federal handling of the issue. Rep. Rosa DeLauro of Connecticut, the top Democrat on the House Appropriations Committee, criticized Health and Human Services Secretary Robert F. Kennedy Jr.’s approach, stating that it appeared “dangerous and haphazard.”
Sen. Tammy Baldwin, D-Wis., said the situation “caused chaos and real harm to Americans” and called for an explanation.
Providers reported scrambling to reverse staffing and programming decisions. Honesty Liller, CEO of the McShin Foundation in Richmond, Virginia, said she was working to rehire five employees already laid off.
Ryan Hampton, founder of the nonprofit Mobilize Recovery, welcomed the funding’s return but questioned the handling, calling it disruptive to critical treatment efforts.
“Restoring these grants was the only acceptable outcome,” Hampton said, “yet the chaos inflicted on frontline providers and families these past 24 hours is unforgivable.”
