Mental health professionals fear the consequences of federal cuts

Deep cuts and massive layoffs to federal agencies like the Department of Health and Human Services, the Substance Abuse and Mental Health Services Administration, and the Veterans Administration have not only eliminated thousands of jobs, but also an estimated $12 billion in mental health care funding and addiction treatment.

The policy shifts impact hospitals, private practices, and school systems and people at the state and local level are unnerved.

Earlier this year, Connecticut Governor Ned Lamont said his state could lose up to $150 million in cuts for public health, mental health, and addiction services. In a statement, he urged the Trump administration to reverse its decision, noting the cuts would have “a devastating impact on our ability to fight disease, protect the health of newborns, provide mental health and addiction treatment services, and keep people safe.”

He added, “We should be making it easier and cheaper for people to access critical health care, including mental health services.”

In May, NAMI released a statement addressing the severity of the cuts, noting that mental health care is one area with strong bipartisan support, “largely because no family is untouched by our nation’s mental health, overdose, and suicide crises,” according to Hannah Wesolowski, NAMI’s chief advocacy officer.

She noted the cuts would disrupt critical research and programs—resulting in more people’s symptoms getting worse and “putting people out of work, on the streets, and in jails and emergency rooms.”

On July 3 in a video posted to her X account, Massachusetts Governor Maura Healey addressed the “One Big Beautiful Bill,” that Congress passed that day.

She said hundreds of thousands of people would lose their health insurance, putting rural hospitals, nursing homes, and community health centers in danger of closing.

“And whether or not you’re on Medicaid, you’re going to pay more for your healthcare,” Healey said.

According to USAFacts, more than 90 percent of the population has had health insurance, either public or private, since 2016. Specifically relating to Medicaid cuts, the American Psychological Association (APA) released an update on restrictions to access insurance coverage.

Medicaid, they pointed out, is the single biggest payer of behavioral health services in the U.S. Losing that coverage would affect more than 11 million people.

The “One Big Beautiful Bill” reportedly cuts $1 trillion over the course of 10 years.

The APA noted other concerns including community resources in rural and underserved areas not receiving reimbursement and limitations placed on access to reproductive and gender-related healthcare.

Dave Meichsner, LICSW, MBA, who is the operations director at Women’s Counseling of Nashua, LLC, said his practice did not have a contract with Medicaid so his clients may not be affected.

However, he said he is really disturbed by the impact cuts would have on people in New Hampshire, noting some community mental health centers may have to close.
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“The follow-on effects of this would mean that many people who are able to keep their coverage will still not be able to find care,” he said.

Meichsner added more people are likely to end up in hospital emergency departments, further straining the medical system.

Shawn Hassell, LMFT, of Between Us Associates in Manchester said that the loss of Medicaid benefits, particularly when expanded incentives are dropped, will mean many states will not renew coverage.

“Those losing access to Medicaid will not be able to have behavioral health services covered and will not be able to afford it privately, Hassell said. He also expects more providers in New Hampshire to leave Medicaid.