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Date: January 14, 2026
To: BHS Contracted Service Providers
From: Nadia Privara, MPA, Director, Behavioral Health Services
General Topic: Impact of Federal SAMHSA Cuts to County BH Services
Subject: UPDATE | Impact of Federal SAMHSA Cuts to County Behavioral Health Services
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BHS Contracted Providers,
As we continue to work in this challenging environment, BHS remains committed to sharing information as expediently as possible. The Trump administration issued termination letters on Tuesday, January 14, 2026, effective immediately, for federal SAMHSA grants that support mental health and addiction services. As of today, County BHS has not received any federal notices related to the elimination of SAMHSA grant funds.
Overview:
- It is estimated that over 2,000 grants could be canceled, totaling up to $2.0 billion—over one-quarter of SAMHSA's overall budget.
- This figures come from the Programs of Regional and National Significance (PRNS) budget (pg. 26)
- The cuts primarily affect non-profit organizations providing street-level care to individuals experiencing addiction, homelessness, and mental illness.
- SAMHSA staff were reportedly not informed or consulted prior to these decisions.
Legal Challenges: Legal challenges are expected and already underway.
- A coalition of 23 states has filed lawsuits to block the administration’s decision to rescind over $11 billion in public health funding.
- Earlier grant terminations (from March 2025) resulted in a federal judge issuing a temporary restraining order to halt the terminations.
Impact to BHS:
- County BHS receives SAMHSA grant funds that include the Substance Use Block Grant (SUBG), Mental Health Block Grant (MHBG), and Projects for Assistance in Transition from Homelessness (PATH).
- We are actively working with the California Behavioral Health Director’s Association and the Department of Health Care Services (DHCS) to assess the impact and will keep you updated on any changes.
Thank you for your continued partnership while we navigate these rough waters. I truly appreciate you all.
Nadia
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Past Communications
Visit Optum to view all Behavioral Health Services provider communications sent on behalf of the department.
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