Judge Grants Preliminary Injunction to Halt Federal Government’s Cancellation of Behavioral Health and Community Health Worker Grants

On May 16, a federal judge granted an injunction on the U.S. Department of Health and Human Services (HHS) terminations that went into effect on March 24 for multiple federal grants. 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).

This preliminary injunction is in place until the Court makes a final decision in the lawsuit, which will likely be several months from now.

AHCCCS is currently assessing the overall impact of this preliminary injunction, ongoing items in multistate litigation, and how it affects the roughly $50 million in grant funds that are included in this lawsuit. AHCCCS will hold a call for all impacted stakeholders on Monday, May 19, 2025 to address next steps. Additional information will be sent to grant recipients and released as it becomes available.