Federal agency reverses decision to cut $2.7 million in Luzerne County human services funding

Luzerne County was informed Thursday the federal government has reversed a sudden decision to terminate $2.7 million in human services funding, said county Mental Health/Developmental Services Administrator Tara Fox.

The federal government had sent termination notices to this county and other government entities across the country Tuesday night, announcing immediate funding cuts.

Fox said she received the following notification Thursday:

“This correspondence serves as official notice that the termination of your federal award, previously communicated on January 13, 2026, pursuant to 2 C.F.R. § 200.340(a)(4), is hereby rescinded. Your award will remain active under its original terms and conditions. Please disregard the prior termination notice and continue program activities as outlined in your award agreement.”

No further explanation was provided, Fox said.

The county was in the process of contacting impacted service providers Thursday to let them know the funding had been restored, Fox said.

“We’re relieved and eager to move forward with these essential goals and priorities,” Fox said.

The impacted grants had been awarded by the Substance Abuse and Mental Health Services Administration, or SAMHSA. This agency, which falls under the federal Department of Health and Human Services, was created to lead “public health efforts to advance the behavioral health of the nation.”

County Human Services Division Head Megan Stone had informed County Council of the funding cut Wednesday, saying the termination notices were “vague but indicate the goals outlined in the grants no longer align with the funding agency’s current priorities.”

Stone had said the federal funding primarily supported “critical mental health initiatives” in the county.

Fox elaborated on some of these programs Thursday.

A portion of the funding covers support programs for county families with a loved one receiving mental health services, Fox said.

Funding also helps residents navigate the mental health system and access resources that increase their independence as they move through recovery, she said.

Evidence-based mental health treatment services, community awareness projects about mental health, and assistance for adult treatment courts are also among the initiatives funded, she said.

Published reports had estimated the federal agency’s cuts collectively totalled $2 billion throughout the country, impacting an array of mental health and substance use disorder services.

The termination letters had referenced “non-alignment” with SAMHSA priorities and indicated the agency can stop an award “to the extent authorized by law, if an award no longer effectuates the program goals or agency priorities.”

These letters said the agency’s current priorities include a focus on “promoting innovative programs and interventions that address the rising rates of mental illness and substance abuse conditions, overdose, and suicide, and their connections to chronic diseases, homelessness, and other challenges our nation’s communities face.”

SAMHSA is developing grants “tailored to states and communities that provide services and supports to effect immediate and positive health changes in the people and communities we serve,” the termination letters had said. As a result, the agency said it was terminating some discretionary awards to better prioritize resources.