MILWAUKEE — A Wisconsin nonprofit leader is warning of serious consequences after the Trump administration slashed $2 billion from mental health, suicide prevention, and substance abuse programs, forcing nonprofits to scramble as federal grants are abruptly canceled.
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The U.S. Substance Abuse and Mental Health Services Administration (SAMHSA) issued grant cancellation notices late Tuesday night, cutting funding for programs that support people struggling with mental illness and addiction.
"It's incredibly frustrating, because we know the need is there, and we know the work is urgent, but it's not prioritized by this administration," Steib said. "It's devastating for myself, my colleagues and the people who are served by this grant."
Mental Health America of Wisconsin was among the organizations affected by the cuts. MHA provides advocacy and education around suicide prevention and relies on a mix of federal, state and local funding.
Program manager Erica Steib received an email Wednesday morning notifying her that a major federal grant had been stripped away.
Watch: Wisconsin nonprofit leader warns of impact from Trump Administration’s $2B cut to mental health funding
Steib said the termination notice was vague and appeared to be a template sent to multiple organizations.
SAMHSA said in the email:
“This letter constitutes a notice of termination, effective January 13, 2026. Pursuant to the terms of the award and 2 C.F.R. § 200.340(a)(4), SAMHSA may terminate a federal award, 'to the extent authorized by law, if an award no longer effectuates the program goals or agency priorities.'"
This means the organization is losing its Garrett Lee Smith Youth Suicide Prevention Grant, which Steib said was supposed to run through August 2027. She said the grant supported suicide prevention efforts in about 40 schools across Wisconsin, including Milwaukee Public Schools.
"Schools really rely on this funding to be able to hold these trainings and to support their students and their staff with this. So that has to halt immediately," Steib said.
In addition, Milwaukee Public Schools confirmed one of its mental health grants was terminated by SAMHSA. In a statement, Stephen Davis, MPS Media Relations, sent:
“Mental health supports are critical for our students. We have increased those supports in recent years, and will continue to offer them. This grant is one of many components of our support network. We did receive a letter yesterday terminating this grant, which was in its last year. It provided $6.4 million in support, with $4.6 million already received. We are actively working to determine how best to reduce any negative impact to students.”
For Steib, the loss of her organization's funding is gutting — but not surprising. After experiencing significant cuts in March of 2025 from the U.S. Department of Health, she says nonprofits like hers are bracing for what comes next.
"I think we're going to see really, really essential programs be cut overnight, and that's going to create more acute needs and leave people struggling, and it will absolutely result in more unnecessary suffering and even death, because people rely on these," said Steib.
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