The Trump administration announced on Wednesday a $700 million initiative labeled as “new funding” aimed at mental health and addiction programs, with a strong focus on addressing homelessness caused by severe untreated mental illness.Â
However, behavioral health experts quickly questioned this claim, asserting that the $700 million referred to existing grants long approved by Congress and already planned for expenditure by the federal government.Â
In fact, many funding notices released this week by the Substance Abuse and Mental Health Services Administration (SAMHSA) had previously been delayed for several months, causing concern among state behavioral health officials and local treatment organizations that depend on federal funding.Â
Nevertheless, during a Clinton, Michigan announcement, Health and Human Services Secretary Robert F. Kennedy Jr. portrayed these funding notices as distinctive accomplishments of the Trump administration.Â
“Through more than $700 million in new investments, we are advancing President Trump’s Great American Recovery Initiative and addressing the addiction and serious mental illness that fuel homelessness across America,” he stated.Â
The SAMHSA announcement included numerous programs that have been available for years and were previously funded during the Biden administration, such as grants for opioid response in Native American tribes, expanding access to drug courts offering treatment instead of jail time, and mobilizing communities to enhance long-term recovery support for substance use disorders.Â
While addiction researchers were relieved to see the funding notices posted, Andrew Kessler, a behavioral health advocate, and political consultant, noted that Kennedy’s hope for innovative approaches overlooked the field’s extensive experience. He also emphasized that most people affected by addiction are not homeless.
“The treatment and recovery community have an excellent grasp on what works. Our evidence base is extensive,” he remarked. “Our biggest challenges remain a shorthanded workforce, poor reimbursement, and not enough resources to handle the challenges we face.”Â
The Trump administration also announced $96 million for a new initiative called Safety Through Recovery, Engagement, and Evidence-based Treatment and Support, or STREETS, aimed at tackling substance use and severe mental illness among the homeless.
“STREETS is designed to help people living with addiction and serious mental illness off the streets and into treatment, and recovery and stability,” Kennedy explained.Â
Experts informed STAT that the STREETS funds seem to be reallocated from existing programs and do not represent “new funding,” contrary to the administration’s claims. SAMHSA, responsible for overseeing most substance use and mental health policy and grants within HHS, has not seen a budget increase in years.Â
During the announcement, Kennedy, alongside Great American Recovery Initiative co-chair Kathryn Burgum, indicated the administration’s focus on collaborating with faith-based organizations. However, the STREETS funding announcement specified that only cities, counties, and Native American tribal organizations could apply for the funding, excluding direct applications from religious organizations.Â
Kennedy also took the opportunity to criticize harm reduction strategies, which aim to reduce drug-related death and disease without requiring immediate abstinence. While several such strategies, like syringe exchange and fentanyl test strips, are widely recognized as effective, others, such as supervised consumption, remain contentious.
Overall, the health secretary acknowledged that the funding might not dramatically change the public health situation.
“We have a huge drug problem here in our country,” he said. “$700 million is not going to solve that problem. But the good news is, there’s about $50 billion that have been put aside during the litigation by the states against the opioid companies, and that money is now going to be available to the states over the next 20 years.”Â
STAT’s coverage of chronic health issues is supported by a grant from Bloomberg Philanthropies. Our financial supporters are not involved in any decisions about our journalism.

