Federal funding cuts impact mental health and substance use disorder grants

Update: On April 17, 2025, a federal judge granted an extension of a temporary restraining order requiring the U.S. Department of Health and Human Services to continue pandemic-era public health, mental health, and substance use disorder funding while litigation proceeds. This decision extends protections initially granted under a temporary restraining order issued on April 3, allowing critical services in Washington and other states to remain in place for now. The case remains active in federal court, and further legal proceedings are expected.

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Update: On April 3, 2025, a federal judge ordered the U.S. Department of Health and Human Services to temporarily reinstate a variety of public health, mental health, and substance use disorder funds that were allocated to states during the COVID-19 pandemic. If you are interested, read Washington State’s declaration for the case. At this time, we do not have further details about when funding will be reinstated, but we will share updates as soon as more information is available.

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On March 24, 2025, the federal government terminated $160 million in pandemic-era funding for public health, mental health, and substance use disorder programs in Washington State, effective immediately. These cuts are part of a nationwide rollback of COVID-era grants, totaling nearly $11 billion across multiple states.

The funding, which was originally scheduled to continue through September 20, 2025, was allocated through the Substance Abuse and Mental Health Services Administration (SAMHSA). As a result, the Health Care Authority (HCA) has instructed approximately 200 contractors and providers to stop work on affected grants. The Washington State Department of Health (DOH) has issued similar notifications.

The cuts impact a wide range of services, including crisis response, outpatient treatment, housing support, school-based programs, and community-based behavioral health. Hundreds of small providers, community organizations, and tribal health programs will see immediate financial impacts. Affected organizations include Oxford Houses, Recovery Cafés, and peer-run behavioral health programs.

As of April 1, a legal challenge is underway. Attorney General Nick Brown joined a coalition of 24 states in filing a lawsuit against the U.S. Department of Health and Human Services and HHS Secretary Robert F. Kennedy, Jr., for terminating pandemic-era funding.

HCA is coordinating efforts with the Washington State Department of Health, the Attorney General’s Office, and the Governor’s Office.

HCA will provide updates as more information becomes available. Media inquiries should be directed to HCA Media Relations.