The second quarter of 2025 brings continued transformation to the healthcare policy landscape, especially with the release of the proposed Fiscal Year 2026 budget. As federal agencies reorganize policy priorities, significant structural and budgetary changes are beginning to take shape. Below are highlights of changes that will impact behavioral health:

• Creation of the Administration for a Healthy America (AHA): Central to the budget proposal is a sweeping reorganization that would consolidate mental health and substance use functions under a new agency: the Administration for a Healthy America (AHA). The agency would absorb functions from multiple offices, including the Office of the Assistant Secretary for Health (OASH), Health Resources and Services Administration (HRSA), Substance Abuse and Mental Health Services Administration (SAMHSA) and others. The intent is to reduce redundancy and create greater efficiency.
• Impact of New Block Grant Structure and Funding Shifts: The AHA’s proposed $19 billion budget includes the creation of the Behavioral Health Innovation Block Grant. This $4 billion program consolidates the Community Mental Health Services Block Grant, Substance Use Prevention, Treatment and Recovery Support Services Block Grant and State Opioid Response. This shift to a block grant structure is designed to give states greater flexibility, but it also introduces the risk that funding may not keep pace with inflation or evolving public health needs. Similarly, the CDC’s former programs in violence prevention, suicide prevention and opioid overdose response would now fall under a new $550 million consolidated grant managed by the National Center for Injury Prevention and Control, leaving states to decide how to prioritize use of these block grant resources.
• Maintenance of Funding for 988 Lifeline and Other Programs: The 988 Suicide and Crisis Lifeline is proposed to receive $520 million in FY26, down slightly from the FY25 appropriation of $601.6 million. This funding is expected to maintain a 45-second average response time and support over nine million contacts. Additional investments in youth suicide prevention and behavioral health services, including Project AWARE, the Child Traumatic Stress Network and Certified Community Behavioral Health Clinics (CCBHCs), remain in the budget. However, states and localities must assess how these changes in federal structure and oversight impact the continuity of services and funding streams.

While policy priorities for the second term of the Trump administration continue to emerge and broad restructuring is pursued, the path forward for many public health and behavioral health programs is not fully known. With the potential for states to gain more discretion over how funds are used, greater variety in program implementation and prioritization across states is likely.

At Bamboo Health, we’re committed to helping organizations navigate these changes with actionable insights and strategies. Contact us today to learn more about empowering life-improving actions for everyone experiencing physical and behavioral health disorders.

Recent headlines have brought a painful truth to the forefront: nearly one in four children in the United States lives with a parent who has a substance use disorder (SUD), according to a 2025 NPR report. Behind the statistic are millions of families grappling with instability — children growing up too quickly, navigating emotional strain and often doing so in silence.

SUDs don’t happen in isolation, and they don’t heal in a vacuum. Without support, they fracture families and leave children managing instability and trauma long before they’re ready. Addressing these challenges demands systemic changes that recognize the full scope of family-centered care and prioritize early intervention.

A Call to See the Bigger Picture

The data derived from the National Survey on Drug Use and Health conducted by SAMHSA underscores the systemic nature of overdose and mental health crises. It’s not just a public health issue — it’s a family and child welfare crisis, too. According to Medscape, children growing up with parental SUD face greater risks for mental health issues, SUD later in life, academic challenges and interaction with the juvenile justice system.

Moving Toward Family-Centered Solutions

While there’s no single solution to addressing the intergenerational effects of substance use disorder, there is a better path forward — one rooted in whole-person, collaborative care. That means:

• Cross-sector coordination between behavioral health, social services and education
• Data-driven insights to identify at-risk families early for proactive intervention
• Trauma-informed approaches that prioritize the safety and stability of children
• Equitable access to behavioral health services and treatment across communities

Bringing these elements together breaks down silos and builds systems that respond to individuals in crisis and the family members and communities that surround them.

We Can and Must Connect the Dots

To connect the dots, healthcare providers need timely insights into pivotal care moments, specifically during transitions like hospital discharges when patients may require follow-up care and coordination. Effective systems must surface these insights quickly and support timely interventions. Equally important is having streamlined referral pathways and real-time visibility into behavioral health treatment availability so parents are connected to care without delay. When care extends beyond the individual and considers the entire family context, outcomes improve and gaps in coordination begin to close.

A more connected approach to behavioral health is emerging, supported by partnerships across state agencies, health systems and community organizations. It’s built on the understanding that when a parent struggles, the entire household experiences the impact.

Connection to care, community and hope is essential to breaking the cycle of behavioral health challenges. Real change becomes possible as systems become more integrated and families feel confident in response strategies.

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Contact us or follow us on LinkedIn to explore how real-time insights and integrated strategies can better support families and communities.

The start of 2025 has brought several potential changes to the larger healthcare market.  Check out the latest to stay informed about potential regulatory shifts.

• Senate confirmation of nominees to serve in key government posts will help advance the agenda of the Trump Administration. With trifecta control, the Republicans are well positioned, at least through 2026, to advance their policy agenda. This includes a strong focus on drug control and diversion activities, such as Make America Healthy Again, as well as the reduction of government fraud, waste and abuse. To date, Robert F. Kennedy Jr. has been confirmed as Secretary of Health and Human Services and Doug Collins has been confirmed as the Secretary of the Office of Veterans Affairs. At the sub-cabinet level, Dr. Marty Makary (FDA) and Dr. Mehmet Oz (CMS) have also been confirmed. Terrance Cole (DEA) is pending confirmation. Steve Davis and Amy Gleason (previously CPO of Main Street Health) have been tapped to lead the Department of Government Efficiency (“DOGE”).
• Continued flurry of Executive Orders and Memorandums coming out of the Trump White House. Of note is the regulatory freeze and the deregulatory agenda of the new Administration – for each new regulation, 10 regulations must be eliminated. This is a high bar for any agency, and there has been a noticeable slowdown in rulemaking by the new administration and postings in the Federal Register.
• Congress avoided a pending government shutdown and funded the federal government through Sept. 2025 with the passage of the Continuing Resolution. Now, Congress and the Administration have shifted their focus to the reconciliation process which could result in reductions to spending in a variety of categories, including programs such as Medicaid. Mandatory spending on priorities like defense, social security, Medicare and Medicaid currently accounts for 60% of all government spending. Efforts to reduce the size and scope of the federal government and pay for the continuation of the Trump tax cuts are not likely to be achieved without offsets that involve reductions in mandatory spending. To that end, the House-passed Budget Resolution has directed the Energy and Commerce Committee to find $880 billion in savings – a large portion of the budget under the jurisdiction of the Energy and Commerce Committee is for Medicaid. The details of what specific cuts would be made, or how the Senate will negotiate budget cuts to align with its own Budget Resolution, are being considered as part of the reconciliation process right now. This process could last several months. Because reconciliation requires a simple majority to advance, Republicans could move reconciliation through both the House and Senate without any Democrat votes, so that the negotiations will happen within and among Republican negotiators. A reduction in federal Medicaid cost sharing would lead to cost shifting of state budgets. As states must balance their budgets, reductions in federal funding for the Medicaid program at the state level will likely lead to further adjustments at the state level, although the extent and focus of those reductions will vary by state.

While the Republicans are expected to maintain control of the Senate for the foreseeable future, the Trump Administration is viewing 2025 and 2026 as valuable windows to pursue their agenda. Expect more to come in the months and years ahead as the Trump Administration seeks to redefine and reshape the role of the federal government.

At Bamboo Health, we’re committed to helping organizations navigate any changes with actionable insights and strategies. Contact us today to learn how our solutions can empower life-improving actions for everyone experiencing physical and behavioral health disorders.