Health Update: Health Update: Health programs restored after brief Trump administration funding cuts – What Experts Say– What Experts Say.
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A Corpus Christi nonprofit health organization was left reeling after it abruptly shut down some programs due to federal funding cuts and, days later, was informed that the money was restored.
The Coastal Bend Wellness Foundation shut down three federally funded programs that focused on substance use, mental health and homelessness after it was notified that funding was terminated on Jan. 13.
The unexpected closure threatened to leave 185 people without care and 12 staff members without jobs and wipe out $1.5 million in community services, according to CEO Bill Hoelscher.
“The termination was effective immediately, with no transition period and no coverage for close-out costs, meaning no funded time for staff meetings, client notifications, referrals or ethical program wind-down,” Hoelscher said in an email.
This caused immediate operational chaos, Hoelscher said.
“We were left scrambling to determine how to transition clients safely and ethically in active care, often during crises, to other providers, while knowing that many of those same community agencies had also been defunded,” Hoelscher said. “There was no guidance, no coordination and no acknowledgment of the clinical realities of mental health and substance use treatment.”
On Jan. 15, he said he received an email saying the programs have been restored.
The Coastal Bend Wellness Foundation was just one of more than 2,000 providers throughout the U.S. affected.
A Trump administration official confirmed to NPR on Jan. 14 that cuts to mental health and addiction programs worth more than $2 billion were to be reversed.
Hoelscher said the 48 hours of confusion extends beyond logistics — it undermines trust.
“Providers are forced to question whether government agencies will honor executed contracts or prioritize continuity of care for vulnerable populations,” Hoelscher said. “This approach contradicts fundamental principles of ethical care, trauma-informed practice and responsible public administration. It demonstrates a serious lack of understanding of mental health systems and deep disrespect for both the clients receiving services and the professionals serving them.”
He said confusion is not merely administrative, but also clinical, ethical and systemic as it places lives, community stability and years of programming infrastructure at risk.
The dozen staff members will remain working for the nonprofit, Hoelscher said, but he fears that federal leadership signaling an intent to end these programs is “deeply disconcerting.”
“The failure to honor contracts understandably leads staff to question whether they should seek more stable ways to earn a living,” Hoelscher said. “I believe this is a temporary reprieve, and that the future of federally supported health and wellness programs will largely depend on the outcome of the midterm elections.”
John Oliva covers entertainment and community news in South Texas. Have a story idea? Contact him at john.oliva@caller.com.
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