January 14, 2025

Bringing you the latest news impacting our network from Congress and the Administration.

In this Edition:

SAMHSA Funding Cancellations
Budget Reconciliation 2.0
Appropriations Update: HUD Continuum of Care Funding
State Department Halts Immigrant Visas
Webinar Reminder
What We Are Reading

SAMHSA Abruptly Ends $2 Billion in Mental Health And Addiction Treatment Grants

The Trump administration abruptly canceled hundreds of addiction and mental health grants to nonprofit providers by issuing immediate termination letters through the Substance Abuse and Mental Health Services Administration (SAMHSA) late yesterday (1/14). Hundreds of organizations received letters informing them their grants had been cut because their programs “no longer effectuate” the agency’s priorities. The cuts impact more than 2000 grants across red and blue states, totaling nearly $2 billion. This move comes on top of the deep Medicaid cuts included in H.R. 1, which affect many mental health and addiction care providers. Our Ask: If you have received such a letter, please reach out to share how this cut in funding is impacting your work, and the people you serve. We will collect these stories in aggregate to share with lawmakers.

Outlook for Second Budget Reconciliation Package
The Republican Study Committee (RSC) has released a framework for a second budget reconciliation bill aimed at addressing affordability concerns. The plan proposes $1.6 trillion in spending cuts and includes health policy changes such as restructuring ACA subsidies into health savings-style accounts and creating new tax-advantaged “health freedom accounts” for direct federal insurance subsidies. While the framework signals strong support among House conservatives, major hurdles remain, especially given the extremely slim Republican majority in the House of Representatives. Key committee chairs, including tax chief Jason Smith (R-MO), doubt the feasibility of passing another large party-line bill, and vulnerable GOP moderates are wary of further health policy changes ahead of November elections. Speaker Mike Johnson has not endorsed the RSC plan but indicated interest in a narrower reconciliation bill in 2026, with GOP leaders working to build consensus in the coming weeks.

Appropriations Update: HUD CoC Funding

As Congressional negotiations continue on appropriations, lawmakers have indicated they hope to include a funding bill for the Department of Housing and Urban Development (HUD.) This bill provides the best opportunity to include no-cost language to extend the current HUD Continuum of Care (CoC) grants for another 12 months, ensuring program stability for calendar year 2026. While Democrats have demonstrated strong support for extending the grants in the package, Senate Majority leadership has indicated that they may not support such a provision. Given that some communities are already running short of funds, it is vital to secure this grant renewal as soon as possible. Our Ask: Call your Senators through the Capitol Hill Switchboard at 202-224-3121 and ask them to urge their Senate leadership to support including CoC funding in the Senate Transportation, Housing and Urban Development (THUD) bill.

U.S. to stop issuing immigrant visas for 75 countries

The State Department has temporarily stopped processing immigrant visas for 75 countries while it revises how it determines whether applicants might become a “public charge,” meaning they could rely heavily on U.S. social safety net programs. This pause follows a proposed rule that would broaden the definition of public charge to include use of programs like Medicaid, SNAP, CHIP, and even non-cash benefits such as free school lunches. Countries affected include Brazil, Nigeria, Cuba, Somalia, Egypt, Iran, and Iraq. If implemented, this policy could significantly impact immigration patterns and, in turn, further complicate existing challenges to workforce recruitment, while also facing likely legal challenges from advocacy groups concerned about its chilling effect in that it would dissuade immigrant families from accessing benefits.

Join us TOMORROW for Capitol Conversations at 1 p.m. ET

Join us for our first Capitol Conversations of the new year for a discussion on what we are expecting for the first few months as Congress gets back to work. We will discuss what’s ahead for Medicaid, appropriations, workforce, and health and housing issues.

The discussion will feature the following speakers:

Ilene Stein, Vice President for Government Affairs at the Center on Budget and Policy Priorities

Luis Zaldivar, Project Director at the American Business Immigration Council

Andrew Fuller, Program Director for Housing and Human Needs at the Evangelical Lutheran Church in America

Lutheran Services in America government relations and advocacy staff will also share updates specific to ongoing efforts to engage with members of Congress.

If you have already registered for an upcoming session, please note the updated registration link below. You must re-register using the new registration form for each individual session that you would like to attend.

REGISTER

What We Are Reading:

For more information, please contact Sarah Dobson, Senior Director of Public Policy and Advocacy.

Lutheran Services in America is one of the nation’s largest national networks of health and human service providers with a mission to cultivate caring communities that advance health and opportunity for all. With 300 nonprofit organizations across 1,400 U.S. communities and more than $26 billion in combined annual services, the Lutheran Services in America network advances equitable outcomes for children, youth and families, improves independence and choice for older adults, champions meaningful services and support for people with intellectual and developmental disabilities, and strengthens stability and purpose for veterans and others. Formed in 1997, Lutheran Services in America brings together a network of leaders, partners and funders to catalyze innovation, strengthen organizational capacity and advance public policy.