Phoenix House Urges Gov Hochul to Adopt Contingency Plan, Protect New Yorkers from Federal Public Health Cuts

ALBANY, NY (04/04/2025) (readMedia)-- Today, leading treatment provider Phoenix House New York sent a letter to Governor Hochul urging her to implement a contingency plan to safeguard critical substance use and mental health programs, following federal orders to cut more than $300 million in public health funding for New York. In the midst of a historic epidemic, the recent budget cuts leave thousands of New Yorkers who rely on addiction recovery services susceptible to lapses in care. According to data from OASAS, among 51,171 New Yorkers who had substance use disorder (SUD) treatment terminated, 342 died of an overdose within 90 days – a figure that elucidates the severe risks community members are likely to face due to the loss of funding and critical services.

Read the full letter here and below.

The letter urges Governor Hochul to ensure that essential behavioral health programs continue serving residents, stating: "Our programs support New Yorkers navigating substance use disorders and mental health challenges, and the loss of SAMHSA funding now puts thousands at risk of losing access to essential care...Without swift action, we risk reversing hard-won gains in preventing overdoses, expanding treatment, and supporting the recovery of countless individuals and families."

Given the associated risks of pausing services, Phoenix House specifically requested that the Governor outline how New York intends to backstop essential behavioral health programs, and consider a contingency fund for the OASAS and OMH budgets.

Letter

April 4, 2025

The Honorable Kathleen Hochul

Governor

State of New York

New York State Capitol Bldg.

Albany, NY 12224

Dear Governor Hochul,

With Phoenix House on the frontlines of New York's substance use and mental health crisis, we are deeply concerned about the impact of recent federal funding cuts on the critical services we provide for communities statewide. Our programs support New Yorkers navigating substance use disorders and mental health challenges, and the loss of SAMHSA funding now puts thousands at risk of losing access to essential care.

We appreciate your administration's efforts to strengthen New York's behavioral health system and acknowledge the challenges posed by the sudden loss of federal support. However, without immediate intervention, these funding cuts will severely disrupt prevention, treatment, recovery, and harm reduction programs that serve some of our state's most vulnerable residents. These conditions will simply exacerbate our state's ongoing epidemic and further endanger community members.

Given the urgency of this situation, we respectfully request:

1. A detailed accounting of the current funding balance for impacted programs, including any remaining resources available to sustain services in the short term.
2. A clear timeline regarding the anticipated fiscal cliff resulting from the loss of SAMHSA funding, including projections on when providers should expect funding shortfalls to take effect.
3. A contingency plan outlining how the State intends to backstop essential behavioral health programs while federal cuts remain in place.
4. We additionally urge you to consider the creation of a contingency fund within the OASAS and OMH budgets to ensure the stability of these critical services.

New Yorkers cannot afford to lose access to the care they depend on. Without swift action, we risk reversing hard-won gains in preventing overdoses, expanding treatment, and supporting the recovery of countless individuals and families. We stand ready to work with your administration to identify solutions that will preserve and protect these essential services.

Thank you for your leadership and your attention to this urgent matter. We look forward to your response.

Sincerely,

Ann-Marie Foster

About Phoenix House:

For 57 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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