Democrat blasts HHS for creating confusion in cutting, then reinstating SAMHSA grants

NEW YORK– A prominent Democrat criticized the Trump administration Wednesday night for creating “uncertainty and confusion” by cutting thousands of grants for addiction and mental health, then abruptly reversing course.

Rep. Rosa DeLauro, a ranking member of the House Appropriations Committee, described Health Secretary Robert F. Kennedy Jr.’s decision-making as dangerous and haphazard after grant recipients began laying off employees based on initial plans.

“He must be careful when making decisions that will impact the health of Americans,” DeLauro, Democrat of Connecticut, said in a statement. “I hope this reversal will serve as a lesson.”

The Substance Abuse and Mental Health Services Administration canceled some 2,000 grants worth nearly $2 billion in funding late Tuesday, according to an administration official with knowledge of the cuts who was not authorized to discuss them publicly.

But as of Wednesday evening, those cuts were being reversed, according to reports in the New York Times, NPR, the Washington Post and others.

Grant recipients whose funding was canceled Tuesday told The Associated Press they had not yet been informed of the reinstatements. Some had already made difficult decisions in response to budget cuts, including laying off employees and canceling scheduled training.

The reason for the reversal was not immediately clear, and spokespeople for the U.S. Department of Health and Human Services did not respond to requests for comment Wednesday evening.

Grant cancellations had reduced funding for a wide range of discretionary grants and accounted for about a quarter of SAMHSA’s overall budget. They build on other wide-ranging cuts that have been made at HHS, including eliminating thousands of jobs and freezing or canceling billions of dollars earmarked for scientific research.

The cuts have jeopardized programs that provide direct mental health services, opioid treatment, substance abuse prevention resources, peer support and more to communities affected by addiction, mental illness and homelessness.

“Without this funding, people are going to lose access to vital services,” Yngvild Olsen, former director of SAMHSA’s Substance Abuse Treatment Center and national advisor to Manatt Health, said Wednesday.

SAMHSA, a sub-agency of HHS, informed grant recipients that their funding would be canceled effective immediately in letters emailed Tuesday evening, according to multiple copies received by the organizations and reviewed by The Associated Press.

The letters, signed by Christopher Carroll, SAMHSA’s principal deputy secretary, justified the terminations using a regulation that states the agency can terminate any federal grant that “no longer aligns with program objectives or agency priorities.”

Grant recipients who were informed of the cancellations said they were confused by this explanation and did not get more details about why the agency felt their work did not align with SAMHSA’s priorities.

“The focus of our grants is entirely consistent with the priorities listed in this letter,” said Jamie Ross, CEO of the Las Vegas-based PACT Coalition, a community organization focused on substance use issues that lost funding for three grants totaling $560,000.

The organizations, shaken by Wednesday’s news, told the AP they had already been forced to cut staff and cancel training. In the long term, many wondered whether they could keep the programs alive by splitting them among different funding sources or whether they would have to stop services altogether.

Robert Franks, CEO of the Baker Center for Children and Families, a Boston-based mental health provider that learned Tuesday it was losing two federal grants totaling $1 million, said Wednesday afternoon that the loss of funding would force his organization to lay off staff and jeopardize care for some 600 families who receive it.

One of his organization’s canceled grants was through the National Child Traumatic Stress Initiative, a more than 20-year-old program supporting specialized care for children who have experienced traumatic events ranging from sexual abuse to school violence.

Franks said his organization’s work directly advances SAMHSA’s goals in combating mental illness. He said the trauma care provided to children through his organization helps people from all walks of life and reduces the burden on other parts of society. He could not be reached Wednesday evening to respond to the news of the reinstatement of grants.

Ross and Ryan Hampton, founder of the nonprofit Mobilize Recovery, told the AP they had not yet been informed of any reversal of the grant cuts they learned about Tuesday evening.

The National Association of County Directors for Behavioral Health and Developmental Disabilities, a group that represents local organizations that provide social welfare services, sent a letter to its members Wednesday noting that several of its partners estimated the reduced grants totaled about $2,000 and likely amounted to about $2 billion. The group said funding withdrawals appeared to be focused on grants classified as programs of regional and national significance.

The group said it believed some block grants, funding for 988 Suicide and Crisis and certified community behavioral health clinics were spared from the cuts.