Multiple federal policies implemented or proposed in recent months are raising concerns about access to mental health care at a time when Americans face unprecedented mental health challenges. The American Psychological Association (APA) has documented these actions, which span multiple federal agencies and affect insurance coverage, agency funding, and specialized services.
On January 13, 2026, the Substance Abuse and Mental Health Services Administration (SAMHSA) terminated hundreds of grants supporting mental health and substance use disorder services, totaling approximately $2 billion. Following bipartisan pushback and advocacy, the funding was reinstated on January 14. Separately, H.R. 1, the “One Big Beautiful Bill Act,” passed July 4, 2025, cut federal funding for Medicaid by 15%, or $1 trillion, over 10 years. The Congressional Budget Office estimates these cuts will result in 11.8 million individuals directly losing Medicaid coverage, with an additional roughly 3.1 million people losing coverage through marketplace plans. Medicaid accounts for one quarter of all U.S. spending on mental health and substance use disorder treatment services.
Additional federal actions include the announcement on May 12, 2025, that the administration will not enforce Biden-era mental health parity regulations finalized in September 2024. These regulations would have strengthened protections requiring insurers to provide “meaningful benefits” for mental health conditions. The Department of Health and Human Services has also proposed dissolving SAMHSA and consolidating it with the Health Resources and Services Administration into a new Administration for a Healthy America, including a $1 billion cut. Other actions include reduced funding for LGBTQ+ crisis services through the 988 Suicide & Crisis Lifeline and halting $1 billion in school mental health professional grants.
According to research, insurance reimbursements for behavioral health visits are on average 22% lower than for medical or surgical office visits, creating a disincentive for providers to join insurance networks. A study found that psychologists’ patients were 10.6 times more likely to be forced to find care out-of-network than specialty physicians’ patients. APA emphasizes that untreated mental illness carries significant costs: one cross-sectional study found it cost Indiana $4.2 billion in direct, indirect, and societal costs.
This article is an AI-assisted summary. All facts and figures are drawn from the original report: https://updates.apaservices.org/new-policies-affecting-access-to-mental-health-care