Federal Government Cancels Approximately $1.9 Billion in Mental Health and Substance Use Treatment Funding

January is Substance Use Disorder Treatment Month.

The Trump administration on Tuesday, January 13, 2026, abruptly cancelled approximately $1.9 billion in mental health and substance use treatment funds that had been awarded by the Substance Abuse and Mental Health Services Administration.

The Guardian reported (Melody Schreiber, "'People will die': Trump administration cancels up to $1.9bn for substance use and mental health," The Guardian, Wednesday, January 14, 2026):

"As many as 2,800 grantees through the Substance Abuse and Mental Health Services Administration (Samhsa) received a letter immediately ending their funding – about 26% of Samhsa’s entire budget.

"Staff at Samhsa were not consulted on the cuts or even told they were happening, according to two sources familiar with the cuts who asked for anonymity to speak about sensitive matters. The agency also endured massive cuts throughout 2025.

"Providers woke up this morning to learn they would need to lay off staff and end programs immediately, Hampton said. Many of these programs are on the frontlines of mental health and substance use, functioning as the first point of contact for people who need care.

"'These are programs that save lives, so the impact could be really devastating,' said Regina LaBelle, former acting director of the Biden White House office of national drug control policy and professor at Georgetown University."