Alliance Alert: The fight to protect critical funding for health services is showing results. Last week, a federal judge issued a temporary restraining order blocking the Department of Health and Human Services from rescinding over $1.3 billion in mental health and substance use funding authorized through the Community Mental Health Block Grant (MHBG) and the Substance Use Prevention, Treatment, and Recovery Services Block Grant (SUPTRS). This follows a lawsuit filed by 23 states and the District of Columbia, including New York Attorney General Letitia James, demanding the immediate restoration of funds.
This ruling is a major win—and one of many ways New York is pushing back to ensure vital health services remain intact for the people who rely on them. We thank AG James for standing up for New Yorkers and will continue to monitor the ongoing litigation to ensure these funds remain protected.
Alliance Executive Seminar Program Will Address Uncertain Times with a 50% Rate Reduction to $99 and National and State Policymaker Panels
Join us at the upcoming Alliance Annual Executive Seminar on April 24 and 25th to learn more about changes to federal policies and how best to navigate them. The Seminar will feature two powerful panels focused on the national and state-level challenges to Medicaid and mental health policy aimed at exploring and making recommendations to help address some of the challenges we face:
Navigating Unprecedented Federal Policy Challenges
With national leaders including Chuck Ingoglia (National Council for Mental Wellbeing), Jennifer Mathis (Bazelon Center for Mental Health Law), Paolo del Vecchio (former director of SAMHSA’s Office of Recovery), Caren Howard (Mental Health America), and Harvey Rosenthal (Alliance CEO).
Taking on the Mental Health Crisis in New York State and New York City
Featuring state and city leaders including Moira Tashjian (NYS Office of Mental Health), Dr. H Jean Wright II (NYC Department of Health and Mental Hygiene), Lara Kassel (Medicaid Matters NY), Ruth Lowenkron (NY Lawyers for the Public Interest), Jihoon Kim (InUnity Alliance) and Alliance VP of Public Policy Luke Sikinyi.
We understand that budget uncertainty has affected everyone. That’s why we’ve reduced registration for the Alliance Executive Seminar to just $99 — to make it more accessible to those on the front lines.
Register for the conference here and for the Marriott Hotel here. See below for more on the recent court actions restoring mental health and substance use funding for 23 states and DC.

On March 27, the Department of Health and Human Services (HHS) announced plans to rescind supplemental funding to states originally authorized by the Coronavirus Preparedness and Response Supplemental Appropriations Act and the American Rescue Plan Act, including roughly $1.3 billion in funding for mental health and substance use care through the Community Mental Health Block Grant (MHBG) and Substance Use Prevention, Treatment, and Recovery Services Block Grant (SUPTRS).
On April 3, Judge Mary S. McElroy issued a temporary restraining order (TRO) from the bench in a case filed by 23 states and the District of Columbia, asking the court to set aside the funding terminations and restore rescinded funds. On Monday, the court issued a written order to accompany Thursday’s bench order. The TRO is in place until the state files a motion for a preliminary injunction, and it states that while in effect HHS is prohibited from enforcing the funding terminations, and that HHS must “immediately cease withholding any funds based on the Public Health Terminations and shall make such funds available and process all payments as if the Public Health Terminations had never been issued.”
All states who are a party to the suit (CO, RI, CA, MN, WA, AZ, CT, DE, DC, HI, IL, KY, ME, MD, MA, MI, NV, NJ, NM, NY, NC, OR, WI, and PA) should be able to access all funds that were subject to the terminations issued on March 24.
If you are from one of the states listed above and continue to experience difficulties accessing these funds, please contact the National Council at Policy@TheNationalCouncil.org and provide as much detail as possible on the issues you are experiencing.
Please let us know if there is any other information we can provide that would be helpful in this regard or if you have any questions pertaining to the effects of the TRO or the pending litigation more broadly. Send this information to Policy@TheNationalCouncil.org.