FOR IMMEDIATE RELEASE
July 07, 2026

Psychiatrists Warn OMB Rule Would Put Politics Over Patients in Federal Mental Health Research and Treatment Funding

Today, the Committee to Protect Public Mental Health submitted a formal comment letter to the White House Office of Management and Budget (OMB) opposing a proposed rule that would give political appointees control over federal mental health research funding and allow behavioral health programs to be terminated at any time, for any reason.

The proposed rule, published May 29, 2026, would rewrite the regulation that governs nearly every federal grant in the country. Because it applies government-wide, it would reshape how virtually all federally funded mental health work is awarded and managed, from research to frontline treatment. Public comments close July 13, 2026 and we encourage you to submit your own comments directly here. Comments can be brief and/or anonymous if necessary.

In its comment letter, the Committee identified six key provisions it says would do direct harm to patients with mental health conditions:

●        Political review would replace scientific peer review. OMB proposes that political appointees, not scientists, would review grant awards for research and treatment, with peer-review recommendations reduced to advisory status only.

●        Active grants could be cancelled without cause. OMB's proposal would let agencies “terminate discretionary awards for discretionary reasons” with no finding of noncompliance or fraud — the same authority SAMHSA cited in January 2026 to briefly cancel roughly $2 billion in behavioral health grants before reversing course the next day under bipartisan pressure.

●        Researchers would be barred from studying disparities affecting high-risk populations  — including veterans, rural communities, and people experiencing homelessness. 

●        Culturally responsive care would lose federal support. The rule would cut federal funding for treatment tailored to a community's needs.

●        Homelessness prevention and housing programs would lose the continuity they depend on. Mid-award termination would sever engagement with people experiencing homelessness and serious mental illness, whose care often depends on months of sustained outreach before they accept treatment.

●        Scientific communication would be restricted. OMB would require government sign-off for researchers to attend conferences and would restrict funding to publish their findings.

The Committee is urging OMB to withdraw the rule entirely, or at minimum, not to finalize the provisions outlined above. Read the full comment letter here.