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24 hours of chaos as mental health grants are slashed then restored

NPR | Thursday, January 15, 2026 
24 hours of chaos as mental health grants are slashed then restored

After a tense day of confusion and backroom negotiations, the Trump administration moved Wednesday night to restore roughly $2 billion in federal grant money for mental health and addiction programs nationwide. The money had been cut off late Tuesday without warning, sending shockwaves through a segment of the country’s patchwork system of public health that relies on grant funding. “After a day of panic across the country, non-profits and people with mental health conditions are deeply alarmed, but also hopeful that this money is being restored,” said Hannah Wesolowski with the National Alliance on Mental Illness. An administration official confirmed to NPR that the cuts, first announced by the Substance Abuse and Mental Health Services Administration (SAMHSA), were being reversed. They asked not to be identified because they didn’t have permission to speak publicly about the decision. They said all of the roughly 2,000 organizations affected by the whiplash series of events were being notified that full funding would be restored. Official notice of grant restoration began reaching organizations Thursday morning. According to a letter sent by SAMHSA to a care provider in upstate New York, which was shared with NPR, the termination of federal funding communicated Tuesday “is hereby rescinded.” “Your award will remain active under...Read more

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