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Dallas County grapples with mixed signals on federal mental health funding

Several people hold a yellow ribbon in front of a building that says "Metrocare." There are orange, blue and clear balloons tied to two posts. One man holds a ceremonial pair of scissors.
Kailey Broussard
/
KERA
Metrocare opened a new mental health services clinic in southeast Dallas last year. The provider would have directly lost funding under the January 2026 federal executive order clawback that was later stopped.

A recent executive order notified mental health and substance abuse providers that $2 billion already promised would be taken back by the federal government.

Less than two days later, the White House administration changed its mind and funding was restored.

The uncertainty over federal mental health funding continues to create issues for Dallas County County.

Commissioner John Wiley Price chairs the Dallas County Behavioral Health Leadership Team.

Sudden policy reversals shake up health provider operations, causing burnout, patient fear and system-wide instability, he said.

"This kind of stop-start decision creates real harm at the local level," he said. "It undermines confidence in the system people depend on. This disruption isn't just limited to people trying to get into care. It directly affects the people already in treatment.

"These sudden pauses, they ripple out,"he said. "They disrupt care for people already in treatment, they strain local providers who serve adults, youth, veterans, families."

NPR reported that hundreds of letters were sent to mental health and substance abuse and addiction services providers nationwide Jan. 13.

Dallas County sources said local organizations, like Metrocare, received funding termination notices.

After NPR's reporting, the Trump administration reversed its decision and confirmed that sweeping cuts to mental health and addiction programs were being reversed.

The executive order, which is no longer visible on the White House website, would have affected about 2,200 organizations nationwide.

Federal money accounts for up to 70 percent of public program funds.

Price said that of the nearly 3 million people in Dallas County, thousands rely on federally funded mental health, substance abuse and addiction services.

He said local leaders are responsible for protecting public healthcare continuity.

"That requires the federal government to stop creating these unnecessary tailspins for states and local government providers and people they serve," he said. It's just the height of insanity. It's BS."

Last year, public health providers lost staff and contracts while an executive order went back and forth on whether it would fund programs.

That led to county officials trying new ways to fill budget gaps in federal grants and funding.

Got a tip? Email Marina Trahan Martinez at mmartinez@kera.org. You can follow Marina at @HisGirlHildy.

KERA News is made possible through the generosity of our members. If you find this reporting valuable, consider making a tax-deductible gift today. Thank you.

Marina Trahan Martinez is KERA's Dallas County government accountability reporter. She's a veteran journalist who has worked in the Dallas area for many years. Prior to coming to KERA, she was on The Dallas Morning News Watchdog investigative and accountability team with Dave Lieber. She has written for The New York Times since 2001, following the 9/11 attacks. Many of her stories for The Times focused on social justice and law enforcement, including Botham Jean's murder by a Dallas police officer and her subsequent trial, Atatiana Jefferson's shooting death by a Fort Worth police officer, and protests following George Floyd's murder. Marina was part of The News team that a Pulitzer finalist for coverage of the deadly ambush of Dallas police officers in 2016.