US pulls back health funding

The US Department of Health and Human Services cancelled about $12billion in federal grants to states that were allocated for Covid-19 testing, vaccination and other responses to the Covid-19 pandemic – however, some of this appears to be cuts in addiction services. See our analysis.

As of March 27, 2025, evaluating the precise impact of Donald Trump’s health service cuts on addiction treatment involves looking at actions taken during his current term, which began in January 2025, as well as policies from his previous administration (2017–2021). While comprehensive data on the effects of recent cuts is still emerging due to the short timeframe, below is an analysis based on reported policy changes, historical context, and early indicators.

During Trump’s first term, his administration took steps to address the opioid crisis, such as declaring it a public health emergency in 2017 and securing $6 billion in funding over two years (2018–2019) to combat opioid abuse. This included efforts to expand access to medication-assisted treatment (MAT) like buprenorphine and naloxone, with notable increases in treatment access reported by 2019—approximately 347,000 more Americans received MAT compared to 2016. However, critics argued these efforts were undermined by attempts to repeal the Affordable Care Act (ACA), which expanded Medicaid coverage for addiction treatment, and by proposed budget cuts to agencies like the Substance Abuse and Mental Health Services Administration (SAMHSA). For instance, in 2017, Trump’s budget proposed a $400 million cut to SAMHSA, though Congress often restored such funding.
In his current term, reports indicate significant reductions in federal health spending, including cuts to SAMHSA, which oversees addiction treatment programs, suicide hotlines, and opioid initiatives. Posts on X and news outlets suggest that as of March 2025, the Trump administration, alongside efforts led by figures like Elon Musk in the Department of Government Efficiency (DOGE), has slashed billions from health services—estimates range from $1 billion to over $12 billion. These cuts reportedly affect substance abuse programs, mental health services, and related grants. For example, SAMHSA faced a 10% staff reduction in February 2025, with potential cuts of up to 50% looming, alongside a loss of about $1 billion in funding. This has raised concerns about disruptions to state and local addiction treatment efforts, such as opioid recovery programs and the 988 crisis hotline.
The immediate impact on addiction treatment is difficult to quantify fully this early, but anecdotal evidence and expert warnings point to potential consequences. In areas like Harlan County, Kentucky—highlighted in a March 2025 Washington Post article—residents in recovery, like Candice Fee, expressed fears that losing Medicaid-funded treatment could lead to relapse, homelessness, and job loss. Kentucky saw overdose deaths drop by nearly 10% in 2023, partly due to Medicaid-supported initiatives, but Governor Andy Beshear warned that federal cuts could reverse this progress by straining rural hospitals and treatment providers. Similarly, posts on X from March 2025 claim that treatment facilities have closed due to funding losses, potentially pushing recovering individuals back toward substance use.
On the other hand, some Trump supporters, like Keiley Harrison from Harlan, argue that cuts could target waste and fraud in Medicaid, which they see as rampant. The administration’s Agenda47 platform emphasizes enforcement-focused solutions—such as targeting drug trafficking—and expanding faith-based treatment, but it lacks detailed commitments to evidence-based MAT, raising questions about its effectiveness in replacing lost services.
Historically, Medicaid expansion under the ACA has been critical for addiction treatment, covering about 40% of those receiving opioid care. Any reduction in its funding or flexibility (e.g., ending continuous eligibility, as proposed by some Republicans) could shrink access, especially in states reliant on federal grants. With SAMHSA’s capacity diminished, the coordination of treatment programs may falter, potentially increasing wait times and reducing availability of counseling, MAT, and overdose prevention tools like naloxone.
In summary, Trump’s recent health service cuts, particularly to SAMHSA and related programs, appear poised to strain addiction treatment infrastructure, risking setbacks in overdose prevention and recovery support. While his administration touts efficiency and enforcement, the loss of funding could disproportionately harm vulnerable populations, though the full scope of these effects will only become clear as data accumulates over 2025. Historical tensions between Trump’s stated goals and policy actions suggest a mixed legacy—some gains in treatment access during his first term, now potentially offset by a focus on budget reduction over service expansion.