Minnesota’s Department of Human Services is warning of both immediate and wide-ranging consequences after the Trump administration canceled $27.5 million in grants that funded mental health and substance abuse treatment programs.

The money is part of the federal COVID-19 relief funding that was set to expire in September. However, DHS said the “sudden and unexpected termination” on Monday means programs and projects across the state will come to an end.

“This funding elimination means reduced access to care, worsened health disparities and an increased strain on an already-stretched mental health system in Minnesota,” said Interim DHS Commissioner Shireen Gandhi in a statement Wednesday afternoon.

DHS is working to identify exactly which programs and grantees are affected.

Minnesota’s mental health system has been pushed to its limit since the pandemic. Programs that treat individuals who struggle with substance use disorders struggled to stay open due to a combination of increased demand and low reimbursement rates from medical assistance.

Data reviewed by 5 INVESTIGATES shows the crisis has continued to worsen. DHS licensing data lists more than 400 substance use disorder treatment programs currently operating in Minnesota. The number of active programs has dropped by 3.5% since late 2023.

The programs that are closed or are not operating make up more than 8 percent of the total licenses listed in the DHS database. Six of those programs closed in the last three months.

DHS said it would coordinate with state and community partners to assess the situation.