Federal Cuts Hit Wisconsin Addiction Treatment, Public Health
Federal government pulls back on grant funding as DHHS fires thousands of employees.

Milwaukee Health Department laboratory. Photo by Jeramey Jannene.
When the U.S. Department of Health and Human Services (HHS) cut approximately $12 billion in grants to state health agencies this week it translated to $210 million in rescinded funding for Wisconsin’s top health agency.
Gov. Tony Evers‘ office announced Friday that it received notice from the federal government that $210 million in grants, previously awarded, would not in fact be coming to the state. Based upon the information provided, the governor’s administration determined that this decision would affect programs for mental health and suicide; substance abuse treatment and prevention; local public health programs and infrastructure.
“The Trump Administration is gutting millions of investments for programs that are designed to help make Wisconsinites and our communities healthier and safer,” the governor said in a statement.
In Milwaukee, County Executive David Crowley sounded the alarm Friday morning that the cuts could impact local services. It’s unclear at this point what the full impact of the cuts will be, but the county anticipates that some local services, and providers who receive funding directly from the state will lose funding, according a spokesperson for the county executive.
“As I stated earlier this week in my State of the County address, I do not agree with taking away programs and services that people rely on, and I do not believe cuts to these programs do anything to support families, children, people with disabilities, and seniors,” the county executive said.
The governor’s office identified a dozen service areas it expects the cuts to impact, including suicide and mental health crisis lines; substance abuse prevention and treatment, and programs dispersing fentanyl test strips; respite and recovery centers; and local public health department funding and laboratories.
Much of the funding, as has been widely reported, came from appropriations during the COVID-19 pandemic intended to support testing and vaccinations. Grants were being disbursed through the Centers for Disease Control and Prevention and the Substance Abuse and Mental Health Services Administration (SAMHSA).
Both agencies are located underneath the U.S. Department of Health and Human Services (HHS). This past week, HHS Secretary Robert F. Kennedy Jr. announced sweeping changes to federal agency, consolidating functions, creating new administrations and laying off 10,000 employees.
Kennedy said the cuts and restructuring were intended to realign the agency to reverse the chronic disease epidemic. ““This Department will do more – a lot more – at a lower cost to the taxpayer,” Kennedy said.
One change is the creation of a new government department: the Administration for a Healthy America (AHA). It will be created by consolidating SAMHSA, the Office of the Assistant Secretary for Health (OASH), Health Resources and Services Administration (HRSA), Agency for Toxic Substances and Disease Registry (ATSDR), and National Institute for Occupational Safety and Health (NIOSH).
“Over time, bureaucracies like HHS become wasteful and inefficient even when most of their staff are dedicated and competent civil servants,” Kennedy said.
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