January 16, 2026
Meeting summary
Quick recap
The meeting focused on several key topics related to funding and program management in the behavioral health sector. Participants discussed the recent reversal of SAMHSA grant terminations, which had a significant impact on various organizations' funding and operations. They also addressed changes in CMVHS gender classification requirements and their implications for client care and documentation. The group explored strategies for diversifying funding sources and collaborating with other organizations to ensure sustainability. Additionally, they discussed recent changes in contract managers at HHSC and the challenges these changes present for ongoing projects and budgeting. The conversation ended with participants sharing their experiences and concerns about the constantly shifting landscape of behavioral health funding and regulation.
Next steps
Summary
De Minimis Threshold Update
Jennifer informed Noelle about the federal approval to increase the de minimis threshold from 10% to 15%, which was confirmed during a recent statewide contracts meeting. Jennifer expressed interest in the processing speed of BPAs, noting a previous experience with delayed responses, and Noelle suggested following up on the BPA issue as it should be processed within a 3-week timeframe. Doug raised concerns about the lack of written documentation for the 15% de minimis, despite its inclusion in contracts, and emphasized the need for clarity and proof when requested by contracts.
Federal Cutoff Dates and Contracts
Jennifer and Doug discussed the impact of federal cutoff dates on treatment and prevention contracts, with Jennifer clarifying that she believed treatment providers were not affected. Doug mentioned that the 15% rate was included in their CCMS proposal but noted the lack of a formal award letter. Carrie from Recovery Council Southeast Texas confirmed they were using the 15% rate for their CCMS and other contracts, suggesting Doug could use the federal announcement as proof. Jennifer agreed to locate and forward relevant federal documentation to Doug for further clarity.
SAMHSA Grant Cancellation Reversal
The group discussed the sudden cancellation of SAMHSA discretionary grants, which would have resulted in significant financial losses for several organizations. Carrie explained that UT Austin informed them of the cancellation via phone call, but HHSC later reversed the decision. Thomas expressed concern about the way the announcement was made, causing distress among staff. Vaughan and Payal shared that their organizations faced potential losses of $2 million and $1 million respectively, but were later reinstated. Doug speculated that the cancellations may have been a miscommunication, possibly related to a shift in agency priorities under the new administration.
SAMHSA Grant Cuts Impact Services
Jennifer shared insights from a recent meeting with Tarrant County CEOs about the impact of SAMHSA grant rescissions, highlighting how these cuts would affect various local services including MHMR, Family Recovery Court, youth counseling, and SBIRT providers at JPS Hospital, which could impact its level 1 trauma center designation. Doug acknowledged the mistake made in the office and noted the groundswell of opposition from congressional delegations. Noelle echoed these concerns, suggesting that while the situation was unexpected, it served as a warning to prepare for potential changes in funding reliance on long-standing institutions.
Block Grant Funding Uncertainty Discussion
The group discussed funding sustainability concerns following the recent rescission notice for block grants, with Noelle reporting that while the block grant itself wasn't directly threatened, there was significant uncertainty about future funding. Doug emphasized the importance of developing multiple funding streams, noting that their current contract with Dallas County is in its second five-year term, and Jennifer highlighted that the block grant's potential changes could impact all prevention contracts in the state. Noelle announced that ASAP would be exploring new funding opportunities at their upcoming general membership meeting, including potential partnerships with organizations like the Texas Council for Mental Health.
AI and Budget Impact Concerns
Doug and Noelle discussed concerns about AI systems potentially targeting minority communities and specialized programs in grant assessments, which Noelle attributed to efforts to eliminate DEI. They noted uncertainty about the Trump administration's proposed budget, which aims to consolidate funding for behavioral health into a single pot, potentially affecting SAMHSA's programs. Congress has pushed back on this budget, but the outcome remains uncertain.
Grant Strategies Amid Program Changes
Anna discussed the challenges faced in securing funding and the need to adapt language in grant applications due to AI scanning and administrative changes. She highlighted the importance of preparing for continued instability and shifting priorities, referencing a leaked HHS document that predicted program consolidations. Anna also mentioned upcoming grant opportunities in criminal justice and for pregnant and postpartum women, encouraging attendees to explore these areas. Doug shared insights on the opioid program funded by the Secretary of State, emphasizing the importance of careful planning and collaboration with other organizations to maximize the use of limited funds.
El Paso Funding Collaboration Strategies
Anna and Doug discussed the potential for increased funding in El Paso by partnering with other organizations, highlighting the community's unique ability to collaborate. Doug shared examples of successful collaborations in El Paso and Dallas, mentioning the role of local behavioral health authorities in managing funds and contracts. Vaughan raised a concern about recent changes in CMBHS related to gender options, noting its impact on their residential team, and sought input on how others were managing these changes.
EMR Challenges for Transgender Patients
The group discussed challenges with electronic medical record systems and patient identification, particularly for transgender clients. Sylvie explained she was switching to hard copy records to comply with CARF requirements, while Crystal shared an experience with private insurance denying claims due to discrepancies between legal gender and preferred pronouns. The discussion explored legal definitions of biological gender, with Vaughan noting that gender is assigned at birth, and the group debated whether to use client self-report or legal documents for identification purposes. The conversation concluded with Doug mentioning a change in their HHSC program manager.
Contract Management Restructuring Challenges
The meeting focused on recent changes in contract management, with several participants noting that they had received new contract managers in the past week. Jennifer shared that her organization had a successful contract manager for 1.5 years but received a new one last week, expressing optimism about the new appointment. Carrie raised concerns about chronic restructuring within the state department over the past few years, suggesting that frequent changes may be harming the system. Noelle explained that the recent restructuring at HHSC was part of a broader effort to consolidate and improve efficiency, though the logic behind the new contract allocations remained unclear.