Phoenix House NY/LI on Last Minute Federal Health Cut Reversal

NEW YORK, NY (01/15/2026) (readMedia)-- Last night, the Trump administration reversed its decision to slash nearly $2 billion in federal funding for lifesaving mental health and substance use treatment programs that serve Americans battling addiction, homelessness, and serious mental illness. Before the reversal, Phoenix House of New York and Long Island was directly impacted by these cuts, losing critical funding for its statewide services, including its SAMHSA-funded Art of Advocacy program.

In response Phoenix House CEO and President Ann-Marie Foster, a member of the NYSBA Task Force on Opioid Addiction, issued the following statement:

"Phoenix House is deeply grateful to House Democratic Leader Hakeem Jeffries, and Representatives Nick LaLota, Thomas Suozzi, and Andrew Garbarino for their successful efforts to preserve funding for lifesaving programs across New York. Thanks to their steadfast support for behavioral health services, New York has averted a full-blown health crisis. But still, thousands of our neighbors are struggling on the streets with untreated mental health and substance use challenges. On top of sweeping Medicaid cuts, and an ongoing nursing strike, the proposed $2 billion in federal cuts would have had catastrophic consequences for our communities. We cannot let the federal Administration play ping-pong with this money. Phoenix House looks forward to working with our federal, state, and local partners to continue offering vital services to those in need."

More than 1.4 million New Yorkers are impacted by co-occurring substance use and mental health disorders. In New York City alone, approximately 207,000 individuals report receiving substance use treatment, and statewide, nearly 2.8 million individuals aged 12 and older struggled with substance use disorders (SUDs) in the past year. But up to 90,000 residents report an unmet need for substance use treatment, according to the DOHMH.

About Phoenix House: For nearly 60 years, Phoenix House New York and Long Island has helped thousands of people overcome substance and alcohol use in order to lead healthy, productive, and rewarding lives. Born as a model for integrated substance use treatment, Phoenix House has grown into a treatment network that offers short-term and long-term residential, intensive outpatient, and general outpatient treatment. Phoenix House also offers treatment for co-occurring mental health disorders, clinical services, medication for addiction treatment, health and wellness goals, and vocational and educational support.

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