NAMI Statement on Proposed Federal Funding Cuts for FY 2026

Arlington, VA — The National Alliance on Mental Illness (NAMI) is deeply alarmed following the release today of President Trump’s proposed discretionary funding levels for Fiscal Year (FY) 2026, which seek unprecedented and drastic funding cuts across the federal government. While the proposal is a high-level document without specifics on all programs that may be impacted, the extent of possible cuts could be devastating for people with mental illness.

The proposed budget, if enacted, would cut federal non-defense spending by more than $163 billion. Specifically, it proposes to cut nearly $18 billion (40 percent reduction) from the National Institute of Health (NIH) and nearly $1.1 billion (15 percent reduction) from programs currently under the Substance Abuse and Mental Health Services Administration (SAMHSA). NAMI previously expressed concern with proposed changes to SAMHSA that would move its programs to be under the new Administration for a Healthy America within the Department of Health and Human Services (HHS), as well as significant staff cuts that have already occurred at SAMHSA and across HHS.

“Mental health care is one of the few issues where there is strong and deep bipartisan support – largely because no family is untouched by our nation’s mental health, overdose, and suicide crises,” said Hannah Wesolowski, NAMI’s Chief Advocacy Officer. “Cuts of this magnitude would certainly disrupt critical research and programs that help people with mental illness get well and stay well, resulting in more people’s symptoms getting worse and putting people out of work, on the streets, and in jails and emergency rooms.”

An early draft of the president's budget leaked last month detailed extensive service eliminations and cuts, such as funding for the LGBTQ+ youth specialized services for the 988 Lifeline, Certified Community Behavioral Health Centers (CCBHCs), Assertive Community Treatment (ACT) for Individuals with SMI, and Consumer and Family Network Grants – all of which collectively help millions of people each year. While today's release does not get into that level of detail, NAMI remains worried about these cuts and eliminations and their negative impacts on people affected by mental illness.

Each year, the Administration proposes a budget to Congress, but it only serves as a blueprint for the president’s priorities. Ultimately, Congress controls final appropriations decisions for FY 2026, which starts on October 1.

“We strongly urge Congress to preserve funding for mental health research, life-saving programs, and criminal justice diversion efforts, with a focus on any programs targeted for elimination,” Wesolowski said. “This proposal isn’t just a list of numbers on a page. These cuts will directly hurt people with mental illness and their families.”

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Congress has returned from recess, and House committees are now negotiating on how to implement cuts laid out in the recently passed budget resolution. That resolution directs the House Energy & Commerce Committee to cut $880 billion in 10 years, which would be impossible without significantly cutting Medicaid.

That’s why YOUR voice matters so much. Many policymakers, including Republicans, have expressed concern with what would happen if they cut Medicaid – thanks to advocates who have shared the impact of Medicaid on their lives and their entire communities. Tell your members of Congress to reject any budget package that cuts Medicaid. Protect Medicaid. Protect Mental Health.

Learn more about NAMI’s ongoing advocacy to “Protect Medicaid. Protect Mental Health.” at nami.org/Medicaid.

A Jersey City police officer won’t face charges in the shooting death of a 52-year-old in 2023, officials with the Attorney General’s Office said Tuesday.

A grand jury declined to file charges against officer Stephen Gigante after he fatally shot Andrew Washington, 52, of Jersey City in an encounter on Aug. 27, 2023.

Body worn camera recordings released by the Attorney General’s Office in September 2023 appeared to show Washington with a butcher’s knife after Jersey City police kicked in the door to his apartment when the man was having an apparent mental health crisis.

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The sheriff did not share his secret with anyone.

He arrived at a Turkish restaurant in Clifton seemingly in good spirits on a chilly, overcast afternoon in January 2024.

Flanked by one of his deputies, Richard Berdnik sat at his usual table and ordered an appetizer and a water. The popular Passaic County Sheriff then posed for a photo with the owner of Toros — his de facto second headquarters — smiling for the image as he had countless times before in his 13 years in the elected post.

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LGBTQ+ young people in need of mental health support would face dire, potentially life-threatening circumstances if President Trump’s plan to cut funding for the 988 Suicide and Crisis Lifeline is approved by Congress, advocates say.

“If this goes through, and this vital program is eliminated, there will be lethal consequences and millions of LGBTQ+ young people in the country (will) lose access to a proven life-saving resource,” said Mark Henson, the director of federal advocacy and government affairs at The Trevor Project.

A budget draft from the U.S. Department of Health and Human Services shows that the Trump administration is seeking to cut specialized services for LGBTQ+ young people who call the 988 Suicide and Crisis Lifeline. The draft offers the first full look at the health and social service priorities of President Donald Trump’s Office of Management and Budget as it prepares to send his 2026 fiscal year budget request to Congress, according to The Washington Post, who first reported on the document. The budget would go into effect in October if approved by Congress.

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The Education Department this week began cutting about $1 billion in mental-health-related grants created in response to mass school shootings, claiming that schools that want to diversify their pool of psychologists are misusing the funds.

School psychology professionals across the country are scrambling to figure out how to move forward after being told funding for their multiyear programs will expire at the end of December if they don’t decide to appeal. The two grants affected received an additional $1 billion after President Joe Biden signed a sweeping bipartisan gun-control bill into law in 2022, a month after the mass shooting at Robb Elementary School in Uvalde, Texas.

The cuts that started Tuesday are in line with President Donald Trump’s executive order that seeks to eliminate programs that foster diversity, equity and inclusion in schools. Last month the administration canceled grants funding gun-violence prevention programs and crime-victim advocacy.

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Between 4.6 million and 5.2 million adults could lose Medicaid in 2026 if work requirements are imposed, cutting federal funding to states by $33 billion to $46 billion in the first year and $362 billion to $504 billion over a decade. States overall could see a $43 billion to $59 billion reduction in economic activity in 2026; a loss of 322,000 to 449,000 jobs; and a $3.2 billion to $4.4 billion reduction in state and local tax revenues. The DC matching rate reduction would cut $712 million in federal funding in 2026 and lead to 7,300 total jobs lost in DC and neighboring states.

This study also estimates between 115,000 and 131,000 in NJ would lose coverage.

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The Department of Health and Human Services (HHS) released what it called a "comprehensive review" of transgender care for children and teens on Thursday, calling for broader use of psychotherapy for young people with gender dysphoria rather than gender-affirming care.

The more than 400-page document details alleged harms from medical interventions for youth, including the use of puberty blockers, and alleged risks, such as infertility.

The "review of evidence and best practices report" is a response to a January executive order issued by President Donald Trump, saying the federal government would not "fund, sponsor, promote, assist or support" transition care for those under age 19.

"Our duty is to protect our nation's children -- not expose them to unproven and irreversible medical interventions," Dr. Jay Bhattacharya, director of the National Institutes of Health, said in a statement on Thursday. "We must follow the gold standard of science, not activist agendas."

Gender-affirming care is supported by multiple major medical organizations. It can range from allowing a child to pick their pronouns to treatments typically prescribed for older teens. Studies show treatments are generally safe and that care has a positive impact on mental health, which psychotherapy alone cannot provide, experts said.

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