By I. Edwards HealthDay Reporter
FRIDAY, Jan. 16, 2026 (HealthDay News) — Federal funding for mental health and addiction treatment programs will continue after the Trump administration abruptly reversed a plan to end nearly $2 billion in grants across the country.
Late Tuesday, thousands of grants overseen by Substance Abuse and Mental Health Services Administration (SAMHSA) were suddenly terminated.
By Wednesday, the decision had been undone, according to sources who spoke with CBS News.
The funding supports thousands of programs that provide care for mental illness, substance use disorders and recovery. More than 2,700 grants were briefly terminated before the decision was stopped.
A source familiar with the situation said the move came from political appointees within the Trump administration, not agency staff.
U.S. Health and Human Services Secretary Robert F. Kennedy Jr. reversed the action.
"After national outrage, Kennedy has bowed to public pressure and reinstated $2 billion in SAMHSA grants that save lives. These are cuts he should not have issued in the first place," said U.S. Rep. Rosa DeLauro of Connecticut, the top Democrat on the House Appropriations Committee.
A termination notice reviewed by CBS News said the grants were being ended so the agency could “better prioritize agency resources.” But a source said that explanation wasn't exactly correct.
"This was not SAMSHA's idea," CBS News' source said. "This was money going to people on the ground who are providing mental health treatment, substance use treatment, recovery support and prevention resources, which this administration says is a priority."
Among the programs briefly affected: The Opioid Response Network, which receives about $15 million a year to provide training and education for communities responding to substance use disorders.
Another was Building Communities of Recovery, a program supported by a $6 million grant that helps expand long-term recovery services.
The funding reversal comes as the Trump administration is also moving forward with major Medicaid cuts. These are expected to affect an array of public health services, including mental health and addiction care, later this year.
More information
The Substance Abuse and Mental Health Services Administration (SAMHSA) has more on its grants.
SOURCE: CBS News, Jan. 15, 2026
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