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Dear Community Partner,
We are writing to share important information regarding the sudden termination of federal funding for several grants that support mental health and substance use programs across North Carolina, including grants administered by NCDHHS. Late on January 13, 2026, NCDHHS received formal notification from the Substance Abuse and Mental Health Services Administration (SAMHSA), within the U.S. Department of Health and Human Services, that these grants were terminated effective immediately due to a shift in federal priorities.
We understand that many of you may have also received notices from SAMHSA related to grants that are directly between your organization and SAMSHA. The termination of your direct grants, grants administered by NCDHHS, as well as those administered by other organizations and agencies across the state, will have a devastating impact on critical efforts to support the health and well-being of North Carolinians.
We recognize the significant and immediate effects this federal action may have on staff, providers, partners, and – most importantly – the individuals, families, and communities these programs serve. NCDHHS is actively assessing the full scope of the impact, including potential effects on services, contracts, staffing, and community-based supports.
Programs administered by NCDHHS that are impacted by this federal decision include:
- NC Healthy Transitions for Youth and Young Adults with Serious Mental Disorders
- North Carolina Grants to Prevent Prescription Drug/Opioid Overdose-Related Deaths (PDO)
- FY2023 Strategic Prevention Framework – Partnerships for Success for States (North Carolina)
- North Carolina Strategic Prevention Framework for Prescription Drugs (SPF-Rx)
- NC System of Care Expansion: Focus on Governance Development and High-Fidelity Wraparound Program
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We also want to clarify that several major SAMHSA grants have not been impacted by this decision at this time, including the Mental Health Block Grant (MHBG), Substance Use Prevention, Treatment and Recovery Series (SUPTRS) Block Grant, and State Opioid Response (SOR) funding.
We understand how unsettling and painful this news is, particularly given the dedication and care that so many of you bring to this work every day. Please know that NCDHHS shares your concern and remains committed to transparency and collaboration as we navigate this moment together. We deeply value our partnership and will continue to communicate as more information becomes available.
All my best,
Kelly
Kelly Crosbie, MSW, LCSW
(she/her)
Director
Division of Mental Health, Developmental Disabilities, and Substance Use Services
North Carolina Department of Health and Human Services
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