March 28, 2025
Late on Monday, March 24, AHCCCS received notice that multiple federal grants had been terminated, effective immediately, almost six months early. These grants include the Substance Use Prevention, Treatment, and Recovery Services Block Grant (SUPTRS, formerly known as SUBG), the Mental Health Block Grant (MHBG), and the Community Health Workers for COVID Response and Resilient Communities grants (CDCCCR), which are funded by the American Rescue Plan Act (ARPA).
Numerous organizations throughout Arizona, including those on Tribal lands within Arizona, were receiving funding from these grants to improve the behavioral health system, reduce substance use/abuse, and to provide direct services to vulnerable Arizonans. AHCCCS is currently assessing the overall impact of this federal decision and estimates that roughly $50 million in grant funds will no longer be distributed. The Agency will be reaching out to grantees to inform them of this change, and will release further information as it becomes available.
AHCCCS
Arizona Health Care Cost Containment System (AHCCCS) Administration – Arizona’s Medicaid Agency