As Trump Moves to Politicize Federal Grants, Rep. Pettersen Leads Push to Protect Mental Health and Substance Use Treatment Funding

WASHINGTON - Today, Representative Brittany Pettersen (D-CO) led 45 members in calling on the Trump Administration to reverse course on their policy effort to politicize the federal grantmaking process, allowing political appointees to have the final say on whether or not communities receive taxpayer funding. In her letter to Office of Management and Budget (OMB) Director Russel Vought and Department of Health and Human Services (HHS) Secretary Robert F. Kennedy Jr., Pettersen specifically highlights the importance of non-partisan grant making for programs under the Substance Abuse and Mental Health Services Administration (SAMHSA), which would also be at risk under the administration's proposal.

"My mom, like far too many Americans, struggled with substance abuse disorder for decades until she was finally able to get the help she needed and enter recovery. In the fight to save her life, I realized just how broken our health care system is, especially for mental health and substance use. I've spent 15 years in elected office building up our behavioral health system, and it has worked. Colorado recently saw a 35% reduction in fentanyl-related deaths," said Rep. Pettersen. "But Trump wants to backtrack on all the progress we have made. SAMHSA performs critical work, and its grants make sure communities in Colorado, especially our rural areas, have access to high-quality care when they need it. I am so lucky that my mom was able to get help, but that opportunity should be open to everyone who needs it. Federal grants are existential for many of these treatment programs, and we must ensure they continue to be awarded based on evidence, not by Trump's political goals and vendettas."

In the letter, the members wrote, "The proposed rule would fundamentally alter how federal grants are awarded by shifting decision-making away from an established, neutral criteria. Instead of relying on statutory requirements, expert agency review, and merit-based evaluation, the rule would allow appointed officials to decide which communities, institutions, and programs receive federal support. It's a sharp break from long-standing Uniform Guidance."

The members continued, "The proposed rule would undermine the longevity of vital programs, including those that support care for mental health and substance use disorder in the United States. By destabilizing the very framework that enables sustained federal investment in these services, the rule threatens the backbone of our national response and the programs that rely on predictable, reliable grant administration to reach the communities most in need."

SAMHSA operates grant programs that help states and local communities prevent and treat substance use disorder, expand mental health services, strengthen the behavioral health workforce, and support crisis response and suicide prevention efforts. These efforts have shown incredible success, with preliminary data from the Centers for Disease Control and Prevention (CDC) showing a 14% drop in overdose deaths in 2025. But earlier this year, SAMHSA terminated over 2,000 grants - totaling more than $2 billion - deepening widespread insecurity across our federal grantmaking system. After pressure from Congresswoman Pettersen, the Trump Administration reversed this decision.

Trump's Office of Management and Budget's (OMB) so-called "Regulation for Federal Financial Assistance" would fundamentally alter how federal grants are awarded by shifting away from an established, neutral criteria, instead allowing political appointees to determine which communities, institutions, and programs receive federal support. This is an unprecedented move, which would further their efforts to use the federal government as a tool to settle political scores against certain states and communities rather than a non-partisan support for the American people.

Colorado has been a consistent target of the Trump Administration's politically motivated funding attacks. The Administration has moved to freeze more than $300 million for child care and other essential services, $94 million from Jefferson County Public Schools, and canceled $109 million in transportation grants for rail safety improvements, public transit, and electric vehicle infrastructure. These were resources already approved to help Colorado families and communities, but the Administration withheld them because Colorado would not fall in line with its political agenda. This proposed rule would give the Administration broad authority to deny federal funding from specific communities and localities, further jeopardizing the services and development projects that Coloradans rely on.

This rule also comes in the aftermath of over two years of grant instability caused by widespread impoundment, cancellations, and delays of federal funding under the Trump Administration. Millions of organizations, local governments, and providers in every state depend on federal funding through the grantmaking process to perform essential services and critical scientific and medical research. One-third of nonprofits reported experiencing a disruption in government funding in the first months of 2025, including 21 percent that lost funding and 27 percent that experienced a delay, pause, or freeze. These disruptions have forced child care providers, schools, local governments, health care organizations, and research institutions to operate under constant uncertainty, threatening the services families rely on and the research that drives American innovation and strengthens our global standing.

Rather than correcting the instability of recent years, this rule risks deepening it - creating new barriers, injecting additional uncertainty into the grantmaking process, and undermining the ability of communities to plan and deliver the programs Americans depend on.

Rep. Pettersen has consistently spoken out against the Trump Administration's politicization of federal funding and its targeting of Colorado and the resources families rely on. Rep. Pettersen led 83 members of the Democratic delegation alongside Speaker Emerita Nancy Pelosi in demanding that the Trump Administration immediately reverse course on its freeze of over $10 billion in child care funding for five Democratic-led states. After this pressure, the Trump Administration recently announced that it would lift its freeze.

The full version of Pettersen's latest letter can be found here and below:

Dear Director Vought:

We write to express our deep concerns with the Office of Management and Budget's (OMB) proposed rule, "Regulation for Federal Financial Assistance," released on May 29, 2026. This rule would revise Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, otherwise known as "Uniform Guidance," and it carries significant implications for our mental health and substance use disorder services and systems. Uniform Guidance has existed for over a decade. It serves as the framework for managing financial assistance while also consolidating OMB requirements for federal awards. This guidance has historically supported the financial and physical security of federal grant operations, providing a durable oversight structure that safeguards federal dollars, preserves interagency integrity, and anchors the stability that the proposed rule now places at risk.

The proposed rule would fundamentally alter how federal grants are awarded by shifting decision-making away from an established, neutral criteria and toward processes that could allow for political influence over funding determinations. Instead of relying on statutory requirements, expert agency review, and merit-based evaluation, the rule would invite political actors to decide which communities, institutions, and programs receive federal support. It's a sharp break from long-standing Uniform Guidance.

The proposed rule would undermine the longevity of vital programs, including those that support care for mental health and substance use disorder in the United States. By destabilizing the very framework that enables sustained federal investment in these services, the rule threatens the backbone of our national response and the programs that rely on predictable, reliable grant administration to reach the communities most in need. Our concerns arise from recent instances that have demonstrated the importance of safeguarding the foundation, stability, and predictability of Substance Abuse and Mental Health Services Administration (SAMHSA) grants.

In January 2026, SAMHSA announced the abrupt termination of over 2,000 grants, totaling more than $2 billion. Upon notification, awardees received minimal justification regarding the cancellation. Only twenty-four hours later, administration officials rescinded this decision confirming that all impacted grant funding would be restored. Despite this reinstatement, the unanticipated announcement sent awardees across the country into widespread alarm. The whiplash of termination, reinstatement, and subsequent recovery time demonstrated how fragile program stability becomes when foundational guardrails are weakened, underscoring the critical need to safeguard predictability for SAMHSA grantees and the communities they serve.

Funding for substance use disorder treatment and mental health services is not a partisan priority; it is a responsibility of the government and must not be left to the priorities of political actors. All fifty states and the District of Columbia offer programs and strategically invest in resources and services to support individuals with substance use disorder and those living with mental health conditions. Combatting this epidemic and reducing overdose deaths remains a collaborative effort. Preliminary data from the Centers for Disease Control and Prevention (CDC) demonstrates a 13% decline in U.S. overdose deaths this year. This decline is the result of long-term investment in substance use disorder funding and resources, and further progress must not be delayed or threatened. Individuals, communities, and families across the nation are depending on reliable resources that are anchored to dependable funding sources, including the federal investments that sustain critical mental health and substance use disorder programs.

Given the overwhelming support to preserve and protect grant funding that expands access to treatment and resources for mental health and substance use disorder, we request that OMB immediately repeal any proposed changes to Uniform Guidance. At a moment when progress against overdose deaths is finally emerging and demand for mental health services continues to rise, it is essential that we maintain, not weaken, the foundation that allows these lifesaving programs to operate. Fracturing that foundation would jeopardize the future of critical services that individuals, families, and communities depend on every day.

We appreciate your attention to this matter.

Sincerely,

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