Several North Dakota health agencies are facing challenges due to the sudden loss of federal funding. The Department of Health and Human Services in North Dakota recently learned that $3.2 million in federal funding for substance-use treatment and mental health programs was rescinded by a federal agency. This decision was made in accordance with President Donald Trump’s executive order to cut costs, citing the end of the pandemic as a reason to terminate COVID-related grants.
Pam Sagness, the executive director for the Behavioral Health Division, stated that the department had received five block grants totaling about $9.5 million in 2021. The funding for these grants came from various acts related to COVID-19 relief. Various organizations, such as Bismarck-Burleigh Public Health, were impacted by this loss of funding, affecting their plans for crisis response, mental health, and addiction services.
Despite the abrupt loss of funding, Sagness expressed that the focus now is on ensuring that services continue by identifying alternative funding sources and working with providers to minimize disruptions. Other organizations across the state were also affected, with many having to reevaluate their plans and look for alternate sources of funding.
In response to the situation, Governor Kelly Armstrong stated that he has been in contact with HHS to understand the impacts on state health providers. The Department of Health and Human Services is evaluating funding options for the loss in federal block grants and collaborating with other agencies, organizations, and private partners to address priority areas. Updates will be provided as more information becomes available.
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