The Trump administration has backtracked on a plan to pull millions of dollars in grants for mental health and substance use disorder services from Illinois state agencies and nonprofits — a headspinning reversal that came after a day of shock and confusion for providers across the state.
The federal government will no longer terminate the grants, an administration official confirmed Thursday morning. The news followed a difficult day for many nonprofit organizations, the leaders of whom woke to letters Wednesday from the federal Substance Abuse and Mental Health Services Administration saying their funding was terminated as of Jan. 13.
The initial letters said that the administration was “terminating some of its awards, in order to better prioritize agency resources.”
Illinois state agencies stood to lose nearly $6 million that goes toward behavioral health and suicide prevention, the agencies said in a joint news release Wednesday night. In the release Gov. JB Pritzker called the terminations “nothing short of abject cruelty.”
State agencies did not immediately respond to a request for comment Thursday morning on the reversal.
Illinois nonprofit groups also reported Wednesday that they stood to lose millions of dollars that supported services for people struggling with homelessness, substance use disorders and that go toward training programs related to mental health.
Dr. Dan Lustig, CEO and president of Haymarket Center, said Thursday morning he was “stunned and excited” that the grants had been restored. But he said the episode has created “a level of uncertainty and fear.”
Haymarket Center, which serves people with substance use disorders in Illinois, had stood to lose about $1.8 million a year, which goes toward helping people who are homeless with housing, employment and behavioral and physical health treatments.
“Really? We’re going to yank funding and then 24 hours later replace it?” Lustig said. “I’m excited it’s restored, but there was a lot of scrambling yesterday and a lot of stress on staff yesterday that was uncalled for. … People’s lives depend on this.”
Nationally, nearly $2 billion in grants across the country may have been affected, estimated Jonah Cunningham, president and CEO of the National Association of County Behavioral Health and Developmental Disability Directors.
Dr. David H. Aizuss, chair of the board of trustees for the Chicago-based American Medical Association, said in a statement Thursday morning he was “pleased” to see the grants restored.
“The broad-based, bipartisan push to restore this funding, combined with massive grassroots support, speaks to the immense impact of these programs and their vital role in ensuring access to care for patients in need,” Aizuss said.
More to come.
