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HHS Abruptly Cancels Nearly $2 Billion in SAMHSA Grants as Outcry Prompts Reported Reversal

Officials report a restoration is underway, creating uncertainty for grantees about timing and scope.

Overview

  • Late Tuesday, SAMHSA emailed termination notices to an estimated 2,000–2,800 grantees, citing non‑alignment with agency priorities and invoking 2 C.F.R. 200.340(a)(4).
  • An administration official later said the grants are being restored, and a House appropriations leader said Secretary Robert F. Kennedy Jr. reinstated the funding, but agencies have offered limited confirmation.
  • The cancellations targeted discretionary Programs of Regional and National Significance touching opioid treatment, homelessness, reentry services, and HIV/hepatitis C prevention, while programs such as 988, Certified Community Behavioral Health Clinics, and some block grants appeared spared.
  • Letters were signed by Principal Deputy Assistant Secretary Christopher Carroll, and multiple reports said many SAMHSA staff were not informed in advance, underscoring internal confusion over the process.
  • Providers and medical groups warned of immediate layoffs, halted trainings, and service interruptions that could drive vulnerable patients to emergency departments, as lawmakers from both parties pressed for answers.