Alliance Statement on the House FY 2027 Labor-HHS Appropriations Proposal
The Alliance for Rights and Recovery is closely monitoring the House Appropriations Committee’s Fiscal Year 2027 Labor, Health and Human Services, and Education funding proposal and its implications for mental health, substance use, recovery, and rights-based services across the nation. While the proposal rejects some of the most harmful elements of the Administration’s budget request, it also contains several concerning reductions and eliminations that could negatively affect people with mental health and substance use challenges.
We are encouraged that the proposal maintains the Substance Abuse and Mental Health Services Administration (SAMHSA) as a standalone agency and rejects the Administration’s proposal to consolidate SAMHSA into a broader federal health agency. The bill also preserves the Community Mental Health Block Grant, the Substance Use Prevention, Treatment, and Recovery Services (SUPTRS) Block Grant, and the State Opioid Response (SOR) program as separate funding streams rather than combining them into a single block grant. This is an important victory for advocates who have argued that dedicated funding streams help ensure investments reach the communities and services they were intended to support.
The proposal includes several positive funding increases. The Community Mental Health Block Grant would receive a $35 million increase, the State Opioid Response Grant program would receive an additional $5 million, and the SUPTRS Block Grant would increase by $26 million. Importantly, committee language specifically recognizes the role of Recovery Community Organizations and notes that block grant funds can support recovery support services and recovery community organizations.
The bill also increases funding for several targeted programs, including:
- A $2 million increase for the Protection and Advocacy for Individuals with Mental Illness (PAIMI) program, bringing funding to approximately $42 million.
- A $2 million increase for child trauma initiatives, raising funding to approximately $103 million.
- A $4 million increase for the Garrett Lee Smith Youth Suicide Prevention Program.
At the same time, the proposal includes several troubling reductions and eliminations. Overall SAMHSA funding would decline by approximately $145 million from current levels, even while remaining substantially above the Administration’s budget request. The mental health portfolio would experience an overall reduction of roughly $33 million, substance use treatment programs would decline by approximately $21 million, and substance use prevention programs would decline by roughly $37 million. We are also disappointed to see Congress increasing funds for forced outpatient treatment through a $2 million increase for Assisted Outpatient Treatment (AOT), bringing total funding for the program to $23.4 million. The federal government’s own research has shown that AOT is not more effective than voluntary services and our nation should be focused on increasing access to voluntary services rather than continuing to fund ineffective and harmful forced treatment approaches.
Of particular concern, the bill would eliminate funding for several programs that support prevention, community engagement, and systems transformation, including:
- Consumer and Family Network Grants
- Mental Health Awareness Training programs
- Mental Health Transformation Grants
- Mental Health Crisis Response programs
- Homelessness Prevention programs
- Minority AIDS Initiative programs within SAMHSA
- Criminal Justice and Homelessness initiatives
The committee report specifically states that Consumer and Family Network Grants are eliminated because the committee is prioritizing treatment, prevention, and support services and does not wish to fund what it characterizes as “broad advocacy activities.” This rationale raises concerns about continued support for meaningful consumer, family, and lived experience engagement in federal policy and systems improvement efforts.
The Alliance is pleased that several recovery-oriented and peer-related programs remain funded, including the Bringing Recovery Supports to Scale Technical Assistance Center, Recovery Community Services Program, Peer Technical Assistance Center, and other recovery support initiatives. The proposal also recognizes the importance of Recovery Community Organizations and community-based recovery supports in helping individuals achieve long-term recovery.
As Congress continues the appropriations process, we will be advocating for the protection and expansion of voluntary, community-based mental health and substance use services, peer support, recovery community organizations, prevention programs, crisis alternatives, housing supports, and rights protections. We remain particularly concerned about the elimination of programs that help build awareness, prevent crises, address homelessness, and ensure people with lived experience have a meaningful voice in shaping services and policy.
This House proposal is only the first step in the appropriations process. The Senate will now develop its own funding bill before negotiations begin on a final package. The Alliance will continue working with our national partners, including members of the Mental Health Liaison Group, the POWER Coalition, recovery organizations, family organizations, and disability rights advocates to push for a final federal budget that strengthens recovery-oriented systems, protects civil rights, and expands access to voluntary services and supports.
We will continue to keep our members informed and provide opportunities for advocacy as the Fiscal Year 2027 appropriations process moves forward.