March 25, 2025
Below please see the content of the letter that SAMHSA sent out to numerous states across the country (including NYS and specifically OASAS) last night re: vital grant programs being terminated by DOGE. To my eyes, the letter is confusing and vague, and we know OASAS is seeking clarity as we speak.
IMPORTANT: During the Webinar Commissioner Cunningham urged providers to turn in their invoices related to the grants that are the subject of the termination from DOGE, as soon as possible. She also stated that if you have any outstanding issues with an invoice from a month that has passed where you are going back and forth with OASAS, do not let this stop you from turning in more recent /other invoices ASAP.
The NYS Council will fight this situation aggressively. To begin, we will immediately send a letter to the Governor’s Office, to the leaders of the Senate and Assembly, and to the relevant committee chairs, urging them to come together quickly to create a financial contingency fund to address this crisis impacting OASAS providers. (NOTE: It is my understanding OMH may have received a similar notice last night too but I do not have any details yet) to help OASAS providers address continuity of care issues, manage immediate fallout, and to address system needs beyond September 30. We will also contact the members of the NYS delegation in Washington to inform them of this development, and urge them to stand up for New Yorkers with substance use disorder service needs. Again, at the present time I do not have full information from OMH but we don’t want to wait for it. We are moving now and will add other details as we go.
We are working on a letter all members can send to their Assembly and Senate representatives, and to the Governor’s Office informing them of this crisis and urging lawmakers to go to their house leader immediately with an urgent request to make OASAS agencies whole in the short and long term. Stand by.
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SAMHSA Letter
Dear Single State Authority Director and State Mental Health Commissioner,
During the COVID-19 pandemic, the Substance Abuse Mental Health Services Administration (SAMHSA) awarded several pandemic-related grants including the funded Coronavirus Preparedness and Response Supplemental Appropriations Act, 2020 (H.R.6074) (CRRSA) which provided funds to respond to the coronavirus outbreak and the American Rescue Plan (ARP) Act of 2021(H.R. 1319) which provided additional relief to address the continued impact of COVID-19 (i.e., coronavirus disease 2019) on the economy, public health, state and local governments, individuals, and businesses.
On April 10, 2023, President Biden signed PL 188-3 terminating the national emergency concerning the COVID-19 pandemic. Consistent with the President’s Executive Order 14222, Implementing the President’s “Department of Government Efficiency” Cost Efficiency Initiative requiring a comprehensive review of SAMHSA grants, and where appropriate and consistent with applicable law, terminate such grants to reduce the overall Federal spending this grant is being terminated effective March 24, 2025. These grants were issued for a limited purpose: To ameliorate the effects of the pandemic. The end of the pandemic provides cause to terminate COVID-related grants. Now that the pandemic is over, the grants are no longer necessary.
In accordance with 45 CFR 96.30 (4), block grant award recipients are required to provide a Financial Status Report (FFR) within 90 days of the close of the applicable statutory grant period. Recipients must liquidate all obligations incurred under an award after the end of the award obligation and expenditure period (i.e., the project period) which also coincides with the due date for submission of the FINAL SF-425, Federal Financial Report (FFR). Reimbursements after termination are allowable if it results from obligations which were properly incurred before the effective date of this termination.
Recipients are expected to complete all work immediately and the reconciliation/liquidation process no later than 90-days after the award period end date.
The related Payment Management System accounts will be restricted from drawdown going further. Additional information will be provided in the revised Notice of Award that will be issued to initiate the award period end date.