April 1, 2025
The Division of Mental Health and Addiction Services (DMHAS) sent a memo on March 31st informing providers of certain services “that on the evening of March 24, 2025,
the New Jersey Department of Human Services received notice from the Trump
Administration, federal Department of Health and Human Services (US DHHS), that
certain federal grants, including Block Grant funds, appropriated under the
American Rescue Plan Act (ARPA) of 2021 (H.R. 1319), were being purportedly
being terminated immediately. This termination of funding purported to take
effect the same day.”
The memo went on to ask that providers “immediately stop work and cease spending any funds associated with these grants” and advised that any expenses incurred beyond March 31st would be at an organization’s own risk.
DMHAS expressed deep regrets for the position this puts providers in, and stated that they do not have any more information at this time and are “actively working to determine next steps and will provide further updates as soon as possible”.
The New Jersey Globe reported on Saturday that the Murphy Administration is “committed to fighting these illegal clawbacks”. The article also states that the Chair of the Assembly Health Committee Carol Murphy, said she was “exploring all options to fight back and protect our residents.”
NJAMHAA will continue to share details as they become available.
