Federal grant cuts create confusion for Kentucky organizations

Trump administration’s $2 billion in grant cuts reversed within 48 hours, leaving local groups uncertain about future
Federal grant cuts create confusion for Kentucky organizations
Published: Jan. 15, 2026 at 5:51 PM EST

LEXINGTON, Ky. (WKYT) - Federal grant cuts announced by the Trump administration Tuesday night created confusion for organizations across Kentucky before being reversed less than 48 hours later.

The Trump administration announced nearly $2 billion in grant cuts through the Substance Abuse and Mental Health Services Administration. The cuts were reinstated Thursday, but local organizations say they remain uncertain about future funding.

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Hope Center loses nearly $1 million temporarily

The Hope Center received an email Tuesday notifying them of nearly $1 million in cuts to grants supporting mental health and substance abuse programs.

“We were stunned by the news,” said Chris Peck, Chief Advancement Officer of the Hope Center.

Peck said the organization uses the federal dollars to support services and programs for people struggling with mental health and substance abuse.

“Immediately the struggle is, okay, then how can we fund this? Because the programs are so important to so many people. I mean, they’re the heartbeat of our organization,” Peck said.

The Hope Center received another email Thursday saying their grant had been restored, but Peck said questions remain.

“We are still receiving some mixed messages about if this is a temporary relief or if it’s going to be set in stone. What we’re trying to do right now is prioritize what we can control and plan for things that we can,” Peck said.

City of Lexington’s Narcan program affected

The City of Lexington was notified it would lose a $499,000 grant used to pay for Narcan supplies and the salaries of two employees who help distribute the overdose-reversal drug.

“Everything’s right where it was 48 hours ago but quite a rollercoaster leading up to that point,” said Charlie Lanter, Housing Advocacy Commissioner for the City of Lexington.

The grant helps the city provide Narcan to people across Lexington including first responders, the health department and mental health facilities.

Lanter said community partners were also at risk of losing funding. The Community Action Council would have lost funding for a homeless street outreach program, and Chrysalis House faced losing more than $1 million used to operate housing and recovery programs for pregnant and parenting women.

The city’s grant was set to run through September. Lanter said they might have to explore other funding sources in case federal funding is no longer available.