Trump administration reverses itself, restores $2 billion in mental health, substance abuse grants

Less than 24 hours after terminating about $2 billion in substance abuse and mental health grants nationwide, the Trump administration reversed itself and restored the funding.  

In Montana, state public health officials and advocacy groups told Montana Free Press Wednesday that local suicide prevention, addiction recovery and other mental health programs had lost millions of dollars in federal funding overnight. Many expressed shock and confusion after receiving a letter from the U.S. Substance Abuse and Mental Health Services Administration, also known as SAMHSA, which said grant money that had already been distributed would be clawed back.

In a Thursday morning email to the Montana state health department, however, officials with SAMHSA directed the state to “disregard” the previous notification canceling the grants. The email was shared with MTFP by a state health department spokesperson.

“[T]he termination of your federal award, previously communicated on January 13, 2026, pursuant to 2 C.F.R. § 200.340(a)(4), is hereby rescinded,” the federal notice read. “Your award will remain active under its original terms and conditions. Please disregard the prior termination notice and continue program activities as outlined in your award agreement.”

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Health departments, mental health advocates, reel from sudden federal grant cuts

Montana public health officials and advocacy groups said that local suicide prevention, addiction recovery and other mental health programs had lost millions of dollars in federal funding, citing a letter from the Trump administration announcing that grant money that had already been distributed would be clawed back.

by Mara Silvers, JoVonne Wagner and Katie Fairbanks 01.14.202601.15.2026

The email did not provide an explanation for the sudden reversal. The state spokesperson, Jon Ebelt, told MTFP that the notices referred to two grants totalling roughly $2 million annually: the Partnerships for Success grant that aims to reduce youth substance misuse, and the Strengthening Families Initiative that works to prevent substance use disorders among pregnant and postpartum women.

Lewis and Clark Public Health Officer Drenda Niemann also confirmed to MTFP that her office received notice that the termination — which would have ended a $125,000 suicide prevention grant — had been rescinded. 

“We will continue to have the grant funds for suicide prevention work through September 2026 as originally planned,” she wrote in an email Thursday. 

Missoula County received notice that funding was being restored for the Systems of Care program, which expands mental health and supportive services for youth and families, according to communications manager Allison Franz. The county, Franz said, is still waiting to hear the status of a grant supporting the Frenchtown Community Coalition.

Casey Schreiner, chief strategy officer at Alluvion Health in Great Falls, said the organization received notice Wednesday that a $545,000 grant for a program addressing substance abuse disorder among young people was cut. Organization leaders began speaking with staff members on the program about potential impacts, but by Thursday, Alluvion received notice of the reversal. 

“It does not go without hiccups because you still had to have some hard conversations,” Schreiner said. 

Johns Hopkins Center for Indigenous Health, which on Wednesday announced the cuts would cancel a substance use prevention project on the Rocky Boy’s Reservation, wrote in a Thursday statement it was “tremendously relieved” to see the terminations reversed. 

“Yesterday was such a challenging one for our staff and the families we serve,” the group wrote in a public Facebook post. 

Also on Thursday morning, a spokesperson for U.S. Sen. Steve Daines emailed a MTFP reporter a link to a POLITICO article stating that the grants had been reinstated, with no other context or statements.

Daines’ office had not responded to Wednesday’s inquiries from MTFP about the cuts. A spokesperson, Gabby Wiggins, did not reply to an additional request for a statement from Daines about the reversal or a question about whether the senator had communicated with the Trump administration about the grant cuts.

Reporters Katie Fairbanks, JoVonne Wagner and Matt Hudson contributed to this story.