​On Tuesday, March 25, the Substance Abuse and Mental Health Services Administration (SAMHSA) notified DHS that several grants funded with federal COVID-19 dollars were abruptly terminated the prior day, March 24, 2025.  

​DHS has determined that the immediate cancellation of these grants rescinds up to $27.5 million from the Behavioral Health Administration. This highly abnormal and abrupt termination of funding will disrupt critical work across Minnesota, including programs that serve pregnant women seeking recovery and expand behavioral health services in schools. However unfortunate, it is probable that services under this funding agreement may not be compensated as of March 24, 2025.

​DHS is still assessing the impacts of the cancellation of these grants as we were given no advance notice of their expiration. We are diligently reviewing all affected contracts to determine downstream impacts to grantees, including counties, Tribes, mental health providers, substance use disorder providers, and local organizations dedicated to serving Minnesotans with behavioral health challenges.  

​It will take time to fully understand the impacts and we will provide updates as we finalize our review in the coming days. We do know there will be immediate impacts to work that has been in process. We are working to determine which grantees will need to terminate programmatic work and activities related to this grant funding and where contracted project work must immediately cease.

If you believe the funding for your work or services may be affected by the SAMHSA federal funding termination, please know that we are working on reviewing the contracts and will be in touch soon. 

​DHS knows that the work behavioral health grantees do is extremely valuable. You give people hope, tools for success and a path to stability. You help strengthen communities and make this state a better place to live for all Minnesotans. And in many cases, you save lives. Your work is essential, and we will continue advocating on your behalf as we navigate these changes at the federal level.