Chicago – January 15, 2026
After a chaotic day marked by uncertainty and behind-the-scenes talks, the Trump administration announced late Wednesday that it would reinstate nearly $2 billion in federal funding for mental health and addiction services across the U.S. The funding had been abruptly halted Tuesday night without prior notice, causing widespread concern among organizations that depend on these grants to support public health services.
“Following a day of nationwide panic, nonprofits and individuals living with mental health conditions remain shaken, but there is renewed hope now that the funding appears to be returning,” said Hannah Wesolowski of the National Alliance on Mental Illness.
A senior administration official told that the Substance Abuse and Mental Health Services Administration (SAMHSA) decision to cut the funds was being reversed. The official spoke anonymously, citing a lack of authorization to comment publicly. According to the official, all approximately 2,000 impacted organizations are being informed that their full funding will be reinstated.
