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HHS Awards $96.7 Million to Expand Mental Health and Addiction Services Nationwide

The U.S. Department of Health and Human Services awarded $96.7 million in grants to strengthen behavioral health services across the country, with most funding directed toward people experiencing homelessness and serious mental illness.

MTNYC Editorial TeamAugust 26, 20265 min read
Medically reviewed by MTNYC Medical Advisory Board, MD, FASAM, LCSWReviewed August 26, 2026
Federal grant allocation diagram with resources flowing to homelessness services, mental health programs, and addiction treatment centers across the United States

The U.S. Department of Health and Human Services last week awarded $96.7 million in grants and cooperative agreements to expand behavioral health services across the country, directing most of the funding toward people experiencing homelessness and serious mental illness while supporting suicide prevention, addiction treatment, and crisis response.

The largest allocation, $63.4 million, will support the Projects for Assistance in Transition from Homelessness (PATH) program across all 50 states, Washington, D.C., and five territories. States and territories will distribute that funding to local organizations providing street outreach, case management, mental health care, substance use treatment, and housing-related assistance. The program also connects participants with employment, education, and additional health services.


Breaking Down the Funding

The grant package, administered through HHS's Substance Abuse and Mental Health Services Administration (SAMHSA), spreads resources across multiple priority areas:

Suicide Prevention and Early Intervention: $16.8 Million

The Garrett Lee Smith State/Tribal Suicide Prevention and Early Intervention program will receive $16.8 million to support efforts by states and tribal governments to reduce suicide and suicide attempts among young people. This program has been a cornerstone of federal youth mental health strategy since its establishment in 2004.

Early Psychosis Intervention: $7.1 Million

Community programs identifying young people age 25 and younger who face an elevated risk of psychosis will receive $7.1 million. The funding covers evidence-based interventions intended to prevent psychotic disorders or reduce their severity. Research consistently shows that early intervention in psychosis significantly improves long-term outcomes.

Substance Use Disorder Training: $2.9 Million

SAMHSA will provide $2.9 million for training, mentoring, and technical assistance to help health care professionals identify and treat substance use disorders, particularly those involving opioids and alcohol. This funding addresses a persistent gap in the addiction treatment workforce, where many primary care providers lack specialized training in recognizing and managing substance use disorders.

Crisis Support and Additional Services: $4.8 Million

The national Disaster Distress Helpline will receive $1.9 million to provide confidential emotional support for people affected by natural disasters and other emergencies. A national Center of Excellence for Eating Disorders will receive $1.8 million to fund training for medical providers on screening, intervention, and treatment referrals. Statewide mental health organizations operated by people with lived experience will receive $1.7 million to strengthen peer-support services.

Health Equity Focus: $1.1 Million

An additional $1.1 million will support substance use treatment and related services in communities disproportionately affected by addiction and co-occurring mental health conditions. Recipients will use public health data to identify local treatment needs and tailor interventions accordingly.


What This Means for New York

While the grant announcement does not specify state-by-state allocations, New York's substantial homeless population and extensive behavioral health infrastructure position the state to receive significant PATH funding. The state's Office of Mental Health and Office of Addiction Services and Supports (OASAS) typically coordinate applications for federal behavioral health grants.

New York providers have until late September to submit continuation applications for existing PATH grants, with new awards distributed by October 1, the start of the federal fiscal year. Local homeless service providers, community mental health centers, and substance use treatment programs should contact their county mental health departments or OASAS regional offices for information on subgrant opportunities.


Context: Grants Amid Uncertainty

The funding announcement comes as SAMHSA faces significant administrative changes. Earlier this year, the Trump administration terminated hundreds of SAMHSA grants effective immediately, affecting programs including overdose prevention, naloxone distribution, and peer recovery support. The $96.7 million announcement represents a continuation of previously appropriated funding rather than new congressional spending.

"These investments will expand access to treatment, strengthen behavioral health services, and help more people move from crisis to recovery," HHS Secretary Robert F. Kennedy Jr. stated in the announcement.


For Those in Crisis

People experiencing a mental health crisis can call or text 988 or access online support at 988lifeline.org. Treatment facilities and providers can be located through FindTreatment.gov.

In New York, the state's OASAS website provides directories of addiction treatment providers by county, including programs specifically designed for people experiencing homelessness or co-occurring mental health conditions.

Written by

MTNYC Editorial Team

The 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.