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Tag: Funding

  • The Most Effective Community Mental Health Clinic Model Just Received More Than 3 Million in New Federal Funding

    The Most Effective Community Mental Health Clinic Model Just Received More Than $223 Million in New Federal Funding

    The most evidence-based community mental health delivery model in the United States just received its largest single infusion of federal funding in years. On June 17, 2026, HHS Secretary Robert F. Kennedy Jr. announced more than $700 million in new behavioral health investments — including $223.1 million specifically for Certified Community Behavioral Health Clinics (CCBHCs) — during a visit to an Easterseals MORC CCBHC clinic in Clinton Township, Michigan.

    The announcement also introduced the STREETS program ($96 million), designed to connect people experiencing homelessness to addiction and mental health treatment, and $211.1 million to improve local 988 crisis line capacity. The total package represents one of the most significant federal investments in community behavioral health since the Bipartisan Safer Communities Act of 2022.

    Why This Matters

    The United States faces a profound mental health and substance use disorder crisis that costs lives and strains emergency rooms, jails, hospitals, and families. More than 57 million adults in the U.S. experienced a mental illness in the past year, and more than 28 million had a substance use disorder. Fewer than half of those with mental illness received any treatment.

    The CCBHC model was specifically designed to close that gap. Unlike traditional outpatient mental health clinics that operate on business hours and serve only those who can afford to wait, CCBHCs must provide same-day care regardless of patients’ ability to pay, 24-hour mobile crisis response, integrated treatment for both mental illness and substance use disorders, peer support services, and primary care screening.

    And unlike many promising models in mental health, CCBHCs have been rigorously studied — and the evidence works.

    What We Know So Far

    According to SAMHSA’s grants dashboard, the $223.1 million for CCBHCs breaks down as $94 million for CCBHC Planning, Development, and Implementation grants and $117.1 million for CCBHC Improvement and Advancement grants, plus $12 million for state planning grants. Individual clinic grants can reach up to $1 million per year.

    The HHS announcement specifically framed the investment as part of President Trump’s Great American Recovery Initiative, an anti-addiction and mental health policy platform.

    “Every community deserves access to effective behavioral health services that help people prevent addiction, achieve recovery, address mental health challenges, and respond to crises,” said Christopher D. Carroll, principal deputy assistant secretary of SAMHSA. “Certified Community Behavioral Health Clinics are a cornerstone of this effort, providing comprehensive, community-based care that helps people sustain recovery and rebuild their lives.”

    What the CCBHC Model Requires

    To be certified as a CCBHC, a clinic must meet nine mandatory service requirements established under Section 223 of the Protecting Access to Medicare Act of 2014 and made permanent under the 2024 Consolidated Appropriations Act. Those requirements include:

    • 24-hour mobile crisis response
    • Same-day outpatient mental health and substance use treatment
    • Screening, assessment, and diagnosis
    • Primary care screening and monitoring for chronic disease
    • Peer support and family support services
    • Targeted case management
    • Psychiatric rehabilitation
    • Community-based mental health care for veterans
    • Services for individuals experiencing a substance use disorder, including opioid use disorder

    The requirement that no patient be turned away due to inability to pay — and that same-day care must be available — distinguishes CCBHCs from most mental health providers in the current system.

    Where the Impact Would Be Greatest

    CCBHCs are concentrated in communities that have historically had the least access to behavioral health care: rural areas, low-income urban neighborhoods, and communities with significant populations of people experiencing homelessness, substance use disorders, or co-occurring mental illness and medical conditions.

    The CCBHC Medicaid Demonstration Program — which provides enhanced federal Medicaid funding to states that implement the model — now includes 10 new states following a June 2024 expansion round. Colorado submitted a new CCBHC Demonstration application in March 2026, reflecting growing state-level interest in the program.

    States that have implemented the CCBHC Demonstration have seen measurable improvements in access to care, including reductions in emergency department visits and psychiatric hospitalizations for participating patients.

    What Doctors and Experts Say

    Research on the CCBHC model has consistently shown reductions in emergency department visits, reduced psychiatric hospitalizations, improved treatment retention for both mental illness and substance use disorder, and better coordination between behavioral health and primary care.

    According to SAMHSA, the CCBHC Improvement and Advancement grants are designed to “enhance and improve CCBHCs that currently meet the CCBHC Certification Criteria,” recognizing that existing clinics benefit from sustained investment to maintain the demanding services the model requires.

    The announcement of the STREETS program — which specifically focuses on moving people from the streets into treatment and recovery — reflects the connection between untreated mental illness, substance use disorder, and homelessness that advocates have long documented.

    What the Evidence Shows — and What It Does Not

    The CCBHC model has been studied more rigorously than most community mental health approaches. Multiple evaluations of the original eight-state CCBHC Demonstration Program, which began in 2017, documented reduced emergency department visits and hospitalizations, improved access to care in underserved communities, increased treatment retention, and greater integration between behavioral health and primary care.

    The model is not a cure for the U.S. mental health crisis. There are not enough CCBHCs to serve the full population that needs them. The certification process takes 12 to 18 months, meaning new grants announced today will not produce new clinics immediately. And the model requires ongoing federal and state funding to maintain its elevated service requirements — making it more vulnerable to funding disruptions than simpler models.

    Who Faces the Greatest Risk Without Access?

    Communities and individuals most in need of CCBHC services include:

    • Adults with serious mental illness who lack insurance or are enrolled in Medicaid
    • People with co-occurring mental illness and substance use disorders
    • Veterans with PTSD, depression, or substance use disorders
    • People experiencing homelessness or housing instability
    • Residents of rural counties without local psychiatric care
    • Children and adolescents with serious emotional disturbance

    What You Can Do Now

    • Check whether a CCBHC is available in your community. SAMHSA maintains a behavioral health treatment services locator at findtreatment.gov.
    • If you or someone you know is in a mental health or substance use crisis, contact the 988 Suicide and Crisis Lifeline by calling or texting 988. The June 17 announcement also included $211.1 million for 988 capacity expansion.
    • If you are a mental health provider or community organization interested in CCBHC certification, contact your state behavioral health authority for information on the certification process.
    • Patients currently enrolled in Medicaid can ask their caseworker whether CCBHC services are available in their plan.

    Cost and Access: What Patients Should Know

    CCBHCs are required to serve patients regardless of their ability to pay. For uninsured patients, CCBHCs operate on a sliding scale and may coordinate with other federal programs including Ryan White HIV/AIDS Program services, substance use block grants, and community health centers.

    Most CCBHC services are billable to Medicaid, and the CCBHC Demonstration provides enhanced federal Medicaid matching rates to participating states, increasing the financial sustainability of the model.

    What Happens Next

    The grants announced June 17 will be awarded through SAMHSA’s competitive grant process over the coming months. New CCBHC Planning, Development, and Implementation grantees will spend their first year building toward certification, with the goal of becoming fully certified CCBHCs and eventually Medicaid Demonstration participants. MedicalDaily will track the expansion of CCBHC capacity and 988 upgrades as new clinics come online.

    The Bottom Line

    The CCBHC model works, and it just received its largest federal investment in years. These clinics provide same-day psychiatric care, round-the-clock crisis response, and integrated addiction treatment to the communities that need it most — without turning anyone away for inability to pay. For the millions of Americans who cannot access mental health care today, this funding represents a meaningful step toward closing the gap. The next step is getting people through the doors.

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  • Billion in Rural Health Funding Won’t Reopen Martin County’s Closed Hospital — Here’s What the Fine Print Actually Says

    $50 Billion in Rural Health Funding Won’t Reopen Martin County’s Closed Hospital — Here’s What the Fine Print Actually Says

    Stanley Sears was 50 years old when he had a heart attack in Martin County, North Carolina. Emergency crews from a neighboring town worked on him for half an hour, but couldn’t revive him for the long drive to the closest hospital. Martin County’s only hospital had closed a year before his death.

    His sister, Debra Pierce, still wonders. “The sad thing is we’ll never know if he could have been saved that night or not, because we don’t have a higher level of care in this county,” she told KFF Health News reporter Sarah Jane Tribble.

    In the political moment following the passage of the One Big Beautiful Bill Act, the story of Martin County is being told differently by different people. Republicans point to the $50 billion Rural Health Transformation Program included in the bill as evidence that rural communities will be helped. Martin County Manager Drew Batts, who has walked through the shuttered corridors of Martin General Hospital with federal and state lawmakers, has a simpler assessment: “The $50 billion is not something that is specifically going to help our situation. It’s not going to help us get this place reopened.”

    He is correct. And the reasons why are an object lesson in the gap between what a federal health fund promises and what it can actually deliver.

    What the $50 Billion Rural Health Fund Is — and What It Isn’t

    According to KFF’s comprehensive analysis of the fund, the Rural Health Transformation Program was added to the One Big Beautiful Bill Act in response to concerns from lawmakers representing rural states about the bill’s massive Medicaid cuts. The fund provides $10 billion per year over five years (fiscal years 2026–2030), for a total of $50 billion. CMS has broad discretion over distribution and — critically — those distribution decisions are not subject to administrative or judicial review.

    The fund’s structural design creates several limitations that directly affect communities like Martin County:

    Limitation 1: The fund goes to existing organizations, not to closed facilities. North Carolina distributes its $213 million first-year allocation among existing health and social service organizations. As KFF Health News reported, federal regulations set limits on how much can be spent on construction and building renovations. Martin General Hospital isn’t open — so it isn’t an existing organization that can receive funds.

    Limitation 2: The hub-and-spoke distribution model concentrates money in larger systems. North Carolina’s plan creates a hub-and-spoke model that allots money to six large regional leads, including nonprofits such as ECU Health’s affiliate Access East. Those hubs then distribute to local entities. ECU Health’s affiliate did win a portion of North Carolina’s first-year payout — but the federal money cannot be used to reopen Martin General, according to ECU Health’s Chief Operating Officer Brian Floyd.

    Limitation 3: The fund is temporary; the Medicaid cuts are not. KFF analysis shows the $50 billion could offset approximately 37% of the estimated cuts to federal Medicaid spending in rural areas ($137 billion over ten years). But while the rural health fund is limited to five years, nearly two-thirds of the ten-year reductions in federal Medicaid spending occur after fiscal year 2030 — meaning the fund’s support runs out before most of the damage it’s supposed to offset materializes.

    Limitation 4: The math doesn’t work for the most rural communities. KFF analysis shows that Connecticut (with 3 rural hospitals by one definition) could receive the same amount as Kansas (with 90 rural hospitals) if both states are approved for funding. The allocation formula gives equal weight to states regardless of rural hospital density, diluting the fund’s impact in states most desperately in need.

    $50 Billion Rural Health Fund — Key Facts Detail
    Total fund size $50 billion ($10B/year for FY 2026–2030)
    Authorizing legislation One Big Beautiful Bill Act
    CMS discretion over distribution Broad; not subject to administrative or judicial review
    NC first-year allocation $213 million
    Distribution model in NC Hub-and-spoke; six large regional lead organizations
    Can NC funds reopen Martin General? No — federal rules limit construction; hospital must be operational
    Fund’s offset of rural Medicaid cuts ~37% of estimated $137B in rural Medicaid cuts over 10 years
    Timing mismatch Fund runs FY 2026–2030; 64% of Medicaid cuts come after FY 2030
    Martin County’s situation 22,000 residents; no hospital since 2023; no paramedics on ambulances
    Distance to nearest ER 20+ miles
    ECU Health projected Medicaid cut impact $1 billion over 10 years (CEO testimony)

    What Martin County Actually Needs — and What It Would Take

    ECU Health signed a letter of intent to reopen Martin General as a rural emergency hospital (REH) — a federal designation that allows smaller facilities to operate with 24-hour emergency services and outpatient care but without inpatient beds. Under that plan, Martin County would pay to refurbish the hospital, and the North Carolina General Assembly would need to provide ECU Health with $210 million — of which $150 million would fund construction of a new inpatient tower at ECU’s Beaufort Hospital.

    That legislative appropriation has not materialized. And even if it did, Representative Don Davis, whose district encompasses Martin County, told KFF Health News the rural health fund money “is essentially putting a band-aid on a much, much broader situation that needs dire help.” Davis has introduced legislation to increase Medicaid reimbursements for rural hospitals — the structural fix that would prevent hospital closures — but it has not moved forward.

    The closure of Martin General in August 2023 was abrupt. Employees were not notified. Patients being treated were wheeled out on stretchers and transported to other facilities. The company operating the county-owned hospital, Quorum Health, did not notify local elected leaders before filing for bankruptcy.

    Martin County also does not have paramedics on its ambulances — only emergency medical technicians (EMTs), who have a more limited scope of practice. The closest emergency rooms are 20 miles or more away, often overcrowded. One woman told KFF Health News she drove 2.5 hours from a small town near the Outer Banks so her 79-year-old aunt could get care at an ECU Health ER in Greenville — and was told to wait outside because of capacity issues.

    “It’s a real healthcare crisis that has already proven itself to have lost lives that perhaps didn’t have to be lost,” said ECU Health COO Brian Floyd. “They just want to not die because there’s nowhere to go when you have an emergency.”

    Frequently Asked Questions

    What is the $50 billion rural health fund?

    The Rural Health Transformation Program, included in the One Big Beautiful Bill Act, provides $10 billion per year for five years (FY 2026–2030) for rural health. CMS has broad discretion over distribution, and distribution decisions are not subject to administrative or judicial review.

    Why won’t the fund reopen Martin County’s hospital?

    Because the fund is distributed to existing health and social service organizations, and federal regulations limit how much can be spent on construction and renovation. Martin General Hospital closed in 2023 — it is not an existing operational facility that can receive funding. Martin County’s situation requires capital investment in a closed hospital that the fund’s design specifically does not accommodate.

    Does the $50 billion offset the Medicaid cuts in the same bill?

    Only partially. KFF estimates the fund could offset approximately 37% of the $137 billion in estimated cuts to federal Medicaid spending in rural areas over ten years. Critically, the fund runs through FY 2030, but nearly two-thirds of the Medicaid cuts occur after that — meaning the fund’s support ends before most of the cuts’ impact materializes.

    What happened to Martin County’s hospital?

    Martin General Hospital, the county’s only hospital, closed abruptly in August 2023 when the company operating it (Quorum Health) filed for bankruptcy without notifying local elected leaders or staff. Patients were wheeled out on stretchers. The county has approximately 22,000 residents with no hospital, no paramedics on ambulances, and emergency rooms 20+ miles away.

    What would it take to reopen Martin General?

    ECU Health has a letter of intent to reopen it as a rural emergency hospital (REH), but the plan requires the North Carolina General Assembly to appropriate $210 million to ECU Health and Martin County to fund building refurbishment. Those appropriations have not materialized. ECU Health’s CEO has separately warned the system expects to lose $1 billion over the next 10 years from Medicaid cuts under the One Big Beautiful Bill Act.

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  • Trump Applauds 13-Year-Old Cancer Survivor After Slashing Funding for Pediatric Cancer Research

    Trump Applauds 13-Year-Old Cancer Survivor After Slashing Funding for Pediatric Cancer Research

    President Donald Trump honored and applauded a young cancer survivor during his recent joint address to Congress despite his numerous attempts to cut funding for healthcare, including pediatric cancer research.

    DJ Daniel, 13, was introduced to the audience by the 47th president on Tuesday night, receiving a standing ovation from the crowd.

    “Joining us in the gallery tonight is a young man who truly loves our police,” Trump announced. “His name is DJ Daniel is 13 years old, and he has always dreamed of becoming a police officer. But in 2018, DJ was diagnosed with brain cancer. The doctors gave him five months at most to live. That was more than six years ago.”

    Daniel and his father have been trying to actualize Daniel’s dream of becoming a real police officer, Trump explained. Since they began, the child has become an honorary member of local police departments, reported ABC News.

    “Tonight, DJ, we’re going to do you the biggest honor of them all,” Trump said. “I am asking our new Secret Service Director, Sean Curran, to officially make you an agent of the United States.”

    Last month, the Trump administration attempted to enact cuts worth $4 billion for funding towards cancer research at universities, cancer centers and hospitals. He attempted to impose a policy under which indirect costs for research grants distributed by the National Institutes of Health (NIH) would be capped at 15 percent.

    Universities and research centers responded to this initiative with a lawsuit claiming that cutting this funding represented “flagrantly unlawful action” and “will devastate medical research at America’s universities.” US District Court Judge Angel Kelley ordered the administration to hold off on the cuts.

    “Once again, President Trump and Elon Musk are acting in direct violation of the law. In this case, they are causing irreparable damage to ongoing research to develop cures and treatments for cancer, Alzheimer’s disease and related dementias, ALS, Diabetes, Mental Health disorders, opioid abuse, genetic diseases, rare diseases, and other diseases and conditions affecting American families,” said Education Subcommittee Ranking Member Rosa DeLauro. “The Trump Administration is attempting to steal critical funds promised to scientific research institutions funded by the NIH, despite an explicit legal prohibition against this action.”

    “The reduction in research and care funding is a devastating setback for the pediatric cancer community, one that threatens all the progress we’ve made. This unfortunate turn of events only reinforces the urgent need for us to continue advancing care, supporting cutting-edge research, and improving conditions for pediatric cancer patients and their families,” Danielle Fragalla, the Chief Executive Officer of Pediatric Cancer Research Foundation, said.

    “At the Pediatric Cancer Research Foundation, our work has never been more critical. Through our institutional priorities—Powering Research, Equitable Care, and Survivorship & Mental Health—we are committed to driving innovating solutions that not only improve outcomes but also ensure that every child and family has access to the support they need.”

    Originally published by Latin Times.

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