This Just In from the National Council re: HHS Proposed Budget Cuts

April 17, 2025

You may have seen news about the Office of Management and Budget (OMB) document indicating that the Trump administration is preliminarily proposing to eliminate or cut many programs within the Department of Health and Human Services (HHS) in its budget request for fiscal year 2026 (FY26).  

This preliminary proposal would implement large reductions in discretionary funding across HHS programs, including mental health and substance use care programs, and reflects previously announced plans to restructure certain agencies under HHS to the Administration for a Healthy America (AHA).  The proposals would impact grant programs that have been housed under the Substance Abuse and Mental Health Services Administration (SAMHSA), including elimination of funding for mental health awareness training grants, Certified Community Behavioral Health Clinic (CCBHC) grants, primary and behavioral health integration, and others.(Note that the proposed cuts would not affect the CCBHC demonstration or current state planning grants, which are funded under different authorities.) 

The proposals are merely the first steps in a long process to finalize federal funding. 

Most importantly, keep in mind that they are  not  the final presidential budget or the final outcome of the federal funding process. The National Council and our partner organizations are already pushing back on these proposed cuts, and we will continue fighting to preserve the critically needed funding you use to support your communities. 

When FY26 appropriations move through Congress, remember that it will require 60 votes in the Senate and 218 votes in the House — meaning there will need to be unanimity among Republicans plus support from Democrats to get a budget passed. 

While these proposals are concerning, we remain optimistic that there is both the opportunity and collective resolve to prevent them from moving forward. 

These are unprecedented times, but as an industry, we have successfully fought to preserve critical funding many times before, and with your help and support, we will again. 

We will keep you updated as we move forward. Please contact the National Council if you have any specific questions.