The federal government’s decision to rescind up to $27.5 million in critical behavioral health funding from Minnesota is not just short-sighted — it’s dangerous. This action threatens to dismantle essential mental health and substance use disorder services that thousands of Minnesotans rely on every day.
On March 25, the Substance Abuse and Mental Health Services Administration (SAMHSA) notified DHS that several grants funded with federal COVID-19 dollars were abruptly terminated the prior day. Now, despite the continued need, SAMHSA is attempting to pull that money back. These actions have left community programs scrambling, and have put lives at risk.
These cuts will have real, human consequences. Minnesota stands to lose funding for youth mental health programs in schools, overdose prevention and response efforts, and services for pregnant women seeking recovery. In Greater Minnesota, mobile crisis units that have been a lifeline for rural families are now uncertain about their future. In the Twin Cities, funding cuts would reduce the availability of First Episode Psychosis services for individuals experiencing early serious mental illness. And across Minnesota, residents could lose access to Warmlines, in which peer specialists provide emotional support, connection, and resources to individuals experiencing mental health challenges before they escalate to crisis.
Some have argued this was “COVID-era” funding, and that the pandemic has ended. The behavioral health crisis unleashed by COVID-19, however, has not disappeared. It’s deepened. In fact, youth mental health concerns have spiked since 2020, with ER visits for suicidal ideation among teens climbing significantly. Providers are still overwhelmed. Communities are still healing. To pull this support now is like taking away the life raft before we reach the shore.
What makes this even more troubling is the chaotic, inconsistent way these cuts have been rolled out. States were given little notice and even less clarity. And now, significant staff time has been spent assessing the impact of these cuts, determining legal ramifications and communicating with partners. These actions do not achieve efficiency for taxpayers – instead, they threaten to waste previous investments and destabilize the entire behavioral health infrastructure that we’ve built since 2020.
These cuts are not occurring in a vacuum. They come at a time when the current administration is also proposing significant cuts to Medicaid, which would have disastrous effects for behavioral health care in Minnesota. Medicaid covers 20% of all mental health treatment in our state, and 50% of substance use disorder treatments.
Fortunately, there is some legal recourse in motion. Minnesota Attorney General Keith Ellison has joined a coalition of 23 states suing the federal government over this reckless decision. A federal judge has now granted a temporary restraining order, pausing these cuts for the time being.
In the meantime, Governor Tim Walz has launched a new federal funding disruption tracker to monitor and respond to these threats in real-time. This tool, announced last month, is designed to increase transparency and ensure that Minnesota leaders — and Minnesotans themselves — can stay informed about what’s at risk. You can find this tool at mn.gov/mmb/budget/federal-investments/data-and-reporting/.
To our partners across the state: we see the uncertainty this creates for you, and we share your frustration. We promise to keep communicating clearly and promptly as this legal process unfolds. And most importantly, we will not stop advocating for the behavioral health services that save lives, support recovery, and strengthen Minnesota communities every day.
Our work continues — because every Minnesotan deserves access to the behavioral health care they need.
Teresa Steinmetz is assistant commissioner of the Behavioral Health Administration at the Minnesota Department of Human Services.
Last Updated on May 5, 2025