Trump administration reverses cuts, restores Lexington drug treatment funding

Beth Musgrave, Lexington Herald-Leader on Jan 15, 2026

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LEXINGTON, Ky. — A day after it abruptly notified Lexington-area service providers they would lose millions in already awarded federal funding for substance abuse and mental health services, President Donald Trump’s administration reversed course and reinstated the funding.

On Jan. 13, the U.S. Substance Abuse and Mental Health Services Administration, or SAMHSA, sent thousands of termination letters to providers of substance abuse and mental health treatment across the country, including at least four programs in Fayette County.

But after news broke that an estimated $2 billion was being pulled from various programs nationwide and furious lobbying in Washington D.C., U.S. Department of Health and Human Services Secretary Robert F. Kennedy Jr. reversed course and reinstated the funding on Jan. 14, according to multiple media outlets. Health and Human Services oversees SAMHSA.

The abrupt and puzzling axing of the already-awarded grants for substance abuse and mental health treatment was strongly condemned by social service providers and many Republican and Democrat politicians.

“After national outrage, Secretary Kennedy has bowed to public pressure and reinstated $2 billion in SAMHSA grants that save lives,” said U.S. Rep. Rosa DeLauro, D-Connecticut, the ranking Democratic member of the House Appropriations Committee. “These are cuts he should not have issued in the first place. He must be cautious when making decisions that will impact Americans’ health.

“Our policy must be thoughtful – not haphazard and chaotic. This episode has only created uncertainty and confusion for families and healthcare providers.”

In Lexington, the proposed cuts would have halted millions of dollars in funding for distribution of 8,000 Narcan kits, closed a program that helps connect homeless people with mental health and drug treatment services, and would have severely impacted a substance abuse treatment program for pregnant and parenting women.

Some of the agencies and groups that were initially cut and will now have funding restored include:

•Lexington-Fayette Urban County Government for a program that provides Narcan, the brand name for naloxone, which reverses drug overdoses, to Lexington police and fire and community groups.

•Chrysalis House for residential and other treatment programs for pregnant women and mothers.

•Community Action Council for a program that connects homeless people with mental health and substance abuse treatment.

•Hope Center for some of its programs involving homeless people.