SAMHSA Sends $794 Million in Block Grants to States for Mental Health and Addiction
SAMHSA distributed $794 million in federal block grants to all 50 states for community mental health and substance abuse treatment, the first allocation of the annual award cycle.
On February 4, 2026, the federal government quietly sent close to $800 million to states across the country — no new legislation required, no press conference with fanfare. It was the first annual block grant distribution of the cycle, and for the addiction treatment programs that depend on it, the arrival of those funds is anything but routine.
The Substance Abuse and Mental Health Services Administration distributed $794 million in block grant funding to all 50 states, the District of Columbia, Puerto Rico, and a dozen other U.S. territories. The money flows through two separate programs that together form the backbone of community behavioral health in America.
Where the Money Goes
The larger share — $475 million — goes to the Substance Use Prevention, Treatment, and Recovery Services Block Grant, which funds the clinics, outreach workers, and treatment programs that serve people who often have no other options. The remaining $319 million funds the Community Mental Health Services Block Grant, directed toward adults with serious mental illness and children with serious emotional disturbance.
New York is among the largest recipients in the country, given its population and the scale of its behavioral health system. The state's allocation will flow through OASAS and the Office of Mental Health into a network of roughly 1,700 licensed programs statewide.
The Politics Behind the Announcement
The release carries a notable signature. HHS Secretary Robert F. Kennedy Jr., whose appointment raised concerns among addiction medicine professionals about the future of federal substance use funding, framed the distribution in terms consistent with the administration's stated priorities. "These block grant allocations put our commitment into action — meeting people where they are and strengthening behavioral health services nationwide," Kennedy said in the agency's statement.
For treatment providers who spent much of 2025 watching federal Medicaid negotiations with anxiety, the block grant distribution offers at least short-term reassurance that core funding streams remain intact. Whether that holds through the next budget cycle is a separate question — one that state agencies and advocacy organizations are already beginning to ask.
Written by
MTNYC Editorial TeamThe MTNYC Editorial Team is a group of healthcare writers, researchers, and addiction specialists dedicated to providing accurate, compassionate, and evidence-based information about addiction treatment and recovery resources in New York State.
