What's Happening at HHS and NIH?

As part of the federal government’s new “Workforce Optimization” initiative:

• 10,000 HHS employees are being laid off, including at NIH, CDC, SAMHSA, and CMS.
• SAMHSA is being folded into a new agency: the Administration for a Healthy America (AHA).
• Over 230 NIH grants were canceled, including HIV-related research efforts serving vulnerable youth and LGBTQ+ communities.
• A proposed 15% cap on indirect costs for NIH grants could severely reduce operating budgets at leading research institutions.
• NIH Director Dr. Jay Bhattacharya acknowledged these are “difficult changes” and pledged to implement them humanely.

The result? A massive reduction in both behavioral health research and community service funding — especially for programs that serve high-need populations.

Programs at Risk

This new direction puts key programs in jeopardy, including:

• Substance Abuse Prevention and Treatment Block Grant (SABG)
• Community Mental Health Services Block Grant (MHBG)
• State Opioid Response (SOR) Grants
• Certified Community Behavioral Health Clinic (CCBHC) Expansion
• Mental Health Awareness Training (MHAT)
• Project AWARE (school-based mental health)
• HRSA Behavioral Health Workforce Training

Each of these has supported prevention, treatment, education, and recovery nationwide. Their disruption will hit vulnerable populations hardest — especially youth, rural communities, and those with co-occurring mental health and substance use challenges.

What Behavioral Health Programs Can Do Now

Although states are suing to reverse these decisions, the government will continue to undergo a massive overhaul with drastic employee and expense cuts. Although it may feel as if programs are caught like a deer in the headlights, there are some positive steps that can be taken to future-proof against what is likely to come.

Engage with the AHA Transition

As HHS reorganizes, stay engaged with updates on the Administration for a Healthy America. Funding may reappear under new umbrellas — but only if voices from the field speak up.

Leverage Opioid Abatement Funds

With billions flowing from opioid settlements, behavioral health organizations have a rare opportunity to secure local funding for long-term care, technology, peer services, and wraparound support. This is the time to get in front of city and county decision-makers.

Build Value-Based Partnerships

Health systems and Medicaid plans are investing in behavioral health for better outcomes and reduced costs. Partner with those payers who need your expertise.

Tap Philanthropy and Earned Revenue

Foundations often step up in crisis. Meanwhile, diversifying through private pay, licensing, training, and tech services can help ensure long-term sustainability.

Technology as a Force Multiplier

Platforms like Pathroot are proving that you can scale care without scaling costs. With digital tools, you can:

• Deliver education and group support virtually.
• Involve the entire circle of care, not just the person struggling with addiction or mental health issues.
• Do more with less staff and by reducing burnout and admin load.
• Stay connected to clients post-discharge to be positioned for a shift to value based care.
• Monitor recovery using technology to ensure compliance with post discharge treatment plans.
• Flag relapse risk early to prevent costly readmissions.

Technology is no longer a “nice-to-have” — it’s essential infrastructure in an underfunded system.

Final Thoughts