Federal Government Ends Key Mental Health Grants in North Carolina

Jan 15, 2026, 2:29 AM
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The North Carolina Department of Health and Human Services (NCDHHS) has confirmed the immediate termination of several federal grants aimed at mental health and substance use services. This decision, communicated by the Substance Abuse and Mental Health Services Administration (SAMHSA) on January 13, has been attributed to a "shift in federal priorities" under the Trump Administration.
The terminated grants include critical programs such as the NC Healthy Transitions for Youth and Young Adults with Serious Mental Disorders, the North Carolina Grants to Prevent Prescription Drug/Opioid Overdose-Related Deaths, and the NC System of Care Expansion. NCDHHS expressed concern over the sudden loss of funding, stating that it is "harmful to North Carolinians who rely on these services" and disruptive to local providers.
The abrupt cancellation of these grants has raised alarms among mental health advocates and service providers. NCDHHS is currently assessing the overall impact of these terminations and exploring options to maintain service continuity with existing resources. The department emphasized its commitment to advocating for those affected by the funding cuts.
This situation is not isolated to North Carolina. Similar terminations of mental health funding have been reported across the country, with a coalition of 24 attorneys general, including North Carolina's, filing a lawsuit against the US Department of Health and Human Services (HHS) for abruptly ending nearly $12 billion in public health grants. The lawsuit argues that these terminations lack legal justification and threaten essential public health services, including mental health support.
In addition to the federal cuts, North Carolina schools have also faced significant reductions in mental health funding. In April, the Department of Education canceled hundreds of millions of dollars in grants that were intended to increase mental health services in schools, including four grants specifically for North Carolina. The abrupt termination of these funds has left school leaders scrambling to make difficult decisions regarding staffing and service provision as the new school year approaches.
The mental health crisis among students in North Carolina is pressing. Recent data indicates that nearly 40% of high school students report persistent feelings of sadness and hopelessness, with 20% seriously considering suicide. The canceled grants were designed to address these alarming trends by providing much-needed mental health resources in schools, where many students first encounter mental health care.
The Bipartisan Safer Communities Act, passed in 2022, aimed to enhance mental health services in schools following the tragic Uvalde school shooting. However, the recent cuts have undermined these efforts, leaving many districts without the necessary support to address the mental health needs of their students.
North Carolina Senator Thom Tillis, a supporter of the Bipartisan Safer Communities Act, has expressed concern over the funding cuts and is working to ensure that the Department of Education aligns its grant programs with federal civil rights laws while maintaining the intent of the legislation.
The termination of these mental health grants has sparked a broader conversation about the federal government's role in supporting state mental health initiatives. Advocates argue that the loss of funding not only jeopardizes existing programs but also hinders the development of new initiatives aimed at addressing the growing mental health crisis in North Carolina and beyond.
As the NCDHHS and local providers navigate the fallout from these funding cuts, the future of mental health services in North Carolina remains uncertain. The department's commitment to advocating for affected individuals will be crucial in the coming months as they seek to mitigate the impact of these abrupt terminations.
In conclusion, the termination of major mental health grants by the federal government poses significant challenges for North Carolina's mental health landscape. With rising mental health needs among youth and families, the state must find ways to sustain and enhance its mental health services despite the loss of critical funding.

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