DMH Receives Notice of SAMHSA Covid Grant Cancellations

DMH received notice on March 24, 2025 that SAMHSA-provided COVID grants available to the state during FY25 were being discontinued immediately. The total amount of these grants that was available for distribution to providers during FY25 was $10,959,626. Of that, $3,424,365.23 has been reimbursed to providers as of March 24, with $7,535,260.77 remaining. These had been multi-year federal grants starting in FY21 with an end date of 9/30/25.

The grants were allocated across a variety of mental health and substance use programs and services, and the total grant funding were originally scheduled to expire 9/30/25. Providers have been aware of that date since the funds were initially awarded.

You can view a list of the services and supports that have been impacted by clicking here. These are the only grants that we have been notified of as of this time that have been terminated.

While this federal notice ends these grants approximately six months early, DMH has received federal guidance that DMH will be able to draw down and reimburse for services provided through March 24.

DMH is working to assess how much existing funding from the 3% alcohol tax revenue and federal block grant funding is available for use for the remaining three months of state fiscal year 2025 for some of the programs where these federal grants have been discontinued. DMH will be assessing both the availability of funds and the utilization of these services by the providers in determining the allocation of any additional funds.

DMH has shared all the information it has with providers, and staff have spoken with providers as well. DMH, like the providers receiving these grants, was expecting the funding to be available through September 2025 and was unaware of any cut until March 24. Our agency remains committed to supporting behavioral health services and recognizes the vital role that state agencies, community providers, families, and advocates play in assisting Mississippians in need. We will continue to collaborate closely and share more information as it becomes available.