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Federal mental health funding restored for programs in San Antonio, across US after abrupt reversal

San Antonio nonprofits say funding scare exposed fragile system

SAN ANTONIO – Federal funding for mental health and addiction services will continue after a sudden reversal by the Trump administration — ending a brief but alarming period of uncertainty for nonprofits across the country, including in San Antonio.

Earlier this week, organizations nationwide received late-night emails informing them that federal grants supporting mental health and substance-use programs were being terminated. Less than 48 hours later, those same groups were notified that the decision had been reversed, and funding would remain in place.

Local nonprofit leaders said the scare highlighted just how vulnerable the system is for people who rely on these services every day.

For nearly two days, mental health and addiction services in San Antonio hung in limbo.

Among the organizations affected was the Family Service Association of San Antonio, which relies on federal funding for several children’s mental health programs.

“We were stunned,” said Mary Garr, president and CEO of the Family Service Association. “We were shocked, devastated, because we know these needs are there.”

Garr said the grants at risk were tied to children’s mental health services, including school-based programs for kids up to 8 years old.

Before the reversal came, she said the organization had already begun preparing for the worst.

“Yesterday we were in the process of providing layoff termination notices to the affected staff,” Garr said.

When early-morning emails arrived nearly 48 hours later confirming the funding would remain in place, Garr said the relief was immediate — but the emotional toll lingered.

“We are very grateful for that rescission and being able to continue providing those services, and we hope that we can stay the course and just continue to focus on the needed work and important work that we do every day,” she said.

At the Center for Health Care Services, CEO Jelynne Jamison said the organization has been operating under growing uncertainty for more than a year.

“We’ve been preparing ourselves to be able to pivot and to seek other opportunities for funding, look for other grants, working with our state government as well as our local government,” Jamison said. “So it really is a time of uncertainty.”

The Center for Health Care Services would have lost about $1 million in federal funding, money that supports programs for women with opioid addiction and children with mental health needs.

While Jamison said the funding restoration brings short-term relief, she stressed that the demand for services in San Antonio far outweighs current capacity.

“Those who live with substance use or mental health disorders could be one in five,” Jamison said. “So that’s about 20% of our population. That’s about 400,000 people.”

Both leaders said the brief funding scare served as a warning that even temporary disruptions can have lasting consequences for families, patients and the professionals who serve them.


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