The Human Cost of Federal Funding Cuts to Substance Use Disorder & Reentry Programs

Federal fundings cuts to substance use disorder and reentry programs

On March 26, 2025, Governor Kathy Hochul warned about the serious impact of federal budget cuts on public health, mental health, and addiction services.

“At a time when New York is facing an ongoing opioid epidemic, multiple confirmed cases of measles, and an ongoing mental health crisis, these cuts will be devastating,” Hochul wrote in her press release.

Her message is clear: no state can handle the loss of this much federal support.

For people fighting substance use disorders (SUD), these cuts are about more than money—they could mean life or death.

Reentry programs, which help people with SUD transition back into society after prison, face particular risks. These programs provide treatment, peer support, and recovery services. They are crucial for breaking the cycle of substance use disorder and incarceration.

Without them, recovery becomes harder, and the risks of return to use, overdose, and recidivism increase.

Federal funding has allowed these programs to use proven methods that save lives and help communities. But with these cuts, many of these programs are shutting down—leaving people without the support they need to rebuild their lives.

The recent 22-day New York correctional officer strike, which exposed overcrowding and unsafe prison conditions, only underscores how these funding cuts will exacerbate the crisis.

 

The Ripple Effects of Cuts

Cuts to Medicaid, a key source of funding for addiction treatment, will hurt the people who need help the most. Medicaid makes it possible for people to afford life-saving medications like buprenorphine and methadone, which treat opioid use disorder. Without these services, many will lose access to treatment, raising their chances of relapse, overdose, or death.

The effects are already visible.

The Connecticut Community for Addiction Recovery (CCAR), a leading organization in the recovery community, shut down its diversion program because of federal funding cuts to the RPA Block Grants. This program helped people with SUD have a chance at recovery rather than serving jail time by providing peer coaching and recovery support.

The program expected funding through September but lost it early when COVID-related federal aid ended. CCAR managed to secure temporary state funding to keep other recovery services open, but losing the reentry program highlights the danger of these cuts.

Other programs across the country with less visibility may quietly disappear without notice to the general public, but will be felt acutely by the communities they serve.

When these services end, people lose the help they need during reentry, increasing the risks of return to use, overdose, and reoffending. These closures show why programs that save lives and strengthen communities must continue.

 

Proven Solutions Under Threat

Evidence-based programs have consistently shown success. Peer support programs, for example, help people with SUD navigate recovery and reentry. Studies show that having a peer professional—someone with lived experience—makes individuals more likely to attend their first treatment appointment, accept medication, and stay in treatment.

Some states, like California and Virginia, lead the way with programs inside prisons. They train incarcerated individuals to become certified peer support specialists. These programs prepare participants for meaningful jobs after release and create positive communities inside prisons. Some also offer halfway houses, so participants have a supportive place to live after release. Programs like these can change lives—if they receive the funding to continue.

 

Why This Matters

Cutting these programs doesn’t only hurt individuals. It hurts society as a whole.

The Bureau of Justice Statistics tracked 400,000 people released from state prisons in 34 states in 2012. Within five years, 71% had been rearrested (Council on Criminal Justice, 2021). Evidence-based programs can reduce these numbers. For example, correctional education programs lower recidivism rates by 43% and improve job prospects after release (Department of Justice Archive, 2018).

Recidivism costs taxpayers billions. In 2016, the U.S. criminal justice system cost $295.6 billion, or $134,400 per incarcerated person (American Action Forum, 2016). States also bear these costs. In 2021, New York state spent $435 billion (CSG Justice Center, 2021) on recidivism-related costs.

 

The Urgency of Action

Federal funding cuts destroy programs that save lives and improve communities. The opioid crisis and the struggles of reentry require action now to protect these services.

Reentry and substance use disorder programs reduce recidivism, support recovery, and restore hope to individuals and families. These programs also make neighborhoods safer, improve public health, and boost the economy. Losing them damages society on every level.

As Governor Hochul said, we cannot fight crises like the opioid epidemic and mental health struggles without strong support systems. Instead of letting these lifelines disappear, we should reinvest in proven solutions. Together, we can create a future where recovery and reentry programs are the norm, not the exception.

 

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