New York City Supports Legal Challenge to Protect Federal Funding for Youth Mental Health Programs

On July 21, 2025, New York City submitted a legal declaration supporting a lawsuit led by New York Attorney General Letitia James, joined by 21 attorneys general, challenging a federal reinterpretation of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA). This reinterpretation restricts eligibility for Substance Abuse and Mental Health Services Administration (SAMHSA) funding based on immigration status, threatening critical mental health and substance use disorder programs. The restriction jeopardizes the City’s Partnership for Early Diversion of Youth program, funded by a $1.645 million SAMHSA grant (2023-2028), which supports at-risk youth aged 13-21 by connecting them to community-based mental health services to prevent juvenile justice system involvement and reduce recidivism. Since 2023, the program has screened over 120 youth, with plans to engage 225 over five years. The City argues that requiring immigration status verification would deter participation, limit access to essential services, and undermine public safety and health initiatives.

City of New York Takes Legal Action to Protect Federal Funding for Youth Mental Health Programs

Submits Declaration in Support of Lawsuit Challenging Federal Government’s Funds to Social Service Programs. New Interpretation Under PRWORA Restricts Eligibility for Services Provided Using SAMHSA Funding Based on Immigration Status. City Health Department Serves At-Risk Youth With Nearly $2 Million Federal Grant.

 The City of New York today submitted a legal declaration in support of a challenge by the Office of New York Attorney General Letitia James and a coalition of 21 attorneys general challenging the federal government’s new interpretation of what qualifies as a federal public benefit under the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA), which would impact federally-funded social safety net programs and the return of taxpayer dollars back to cities and states across the nation, including New York City. The declaration states that this restriction would impact mental health and substance use disorder treatment, prevention, and recovery support services programs administered by the Substance Abuse and Mental Health Services Administration (SAMHSA) — a division of the U.S. Department of Health and Human Services (HHS) — and would severely limit support services to at-risk youth, possibly leading to an increase in criminal recidivism.

“Public safety has always been our administration’s North Star, and that means investing in not only downstream solutions but also upstream programs that divert people, especially our youth, away from entering the criminal justice system in the first place,” said New York City Mayor Eric Adams. “Mental illness does not discriminate based on legal status, and to ensure all of our residents are safe, neither should funding to programs that prevent crimes from happening from the start. These programs serve youth with mental health needs and help them from falling into a life of crime. We are proud to submit this declaration as we fight to ensure New Yorkers receive every dollar they’re entitled to as we continue to make New York City safer and the best place to raise a family.”

“The City of New York stands with Attorney General James in seeking to preserve uninterrupted access to the federally-supported social service safety net, which includes mental health programs for at-risk youth across New York,” said New York City Corporation Counsel Muriel Goode-Trufant. “Conditioning access to these programs on proof of immigration status is unlawful and undermines decades of public health practices.”

“All New Yorkers deserve access to health care, without exception,” said New York City Department of Health and Mental Hygiene (DOHMH) Acting Commissioner Dr. Michelle Morse. “The New York City Health Department partners with communities across the city to ensure that young New Yorkers get the mental health services they want and need. Restricting eligibility to the programs within the Partnership for Early Diversion of Youth will only create barriers for teens who need the program the most. We support this declaration on behalf of the health and safety of all New Yorkers.”

As detailed in the declaration, DOHMH received a $1.645 million grant to run its Partnership for Early Diversion of Youth program from SAMHSA in 2022 for a five-year period, beginning in 2023 and running through 2028. Studies indicate that a substantial number of youth in detention or correctional setting have diagnosable mental health problems. The Partnership for Early Diversion of Youth is designed to engage at-risk youth in detention or correctional settings with mental health problems prior to potential arrests, and also to reduce recidivism for those who have already had interactions with the juvenile legal system.

Under the program, DOHMH collaborates with multiple partners — including community-based organizations, a clinical mental health provider, and a coordinated diversion partner — with a goal of diverting youth, aged 13-21 years, from the juvenile justice system to community-based mental health, substance use disorder, and other critical support services. In the time since the Partnership for Early Diversion of Youth program’s initiation in 2023, DOHMH’s partners have screened more than 120 youth, linking many with program-funded mental health services. Participation in the program continues to grow, and the city aims to engage with 225 youth and connect them to appropriate services over the course of the five-year period of the program.

The new interpretation under PRWORA restricts eligibility for services provided using SAMHSA funding based on immigration status. Neither DOHMH nor any of its community-based partners ask youth receiving services through the Partnership for Early Diversion of Youth program about their immigration status before offering those services, and there are no systems in place to undertake such verifications. If DOHMH or its partners were required to ask about immigration status, many youth and their families would not be willing to engage with the program and would be deprived of the crucial services the program provides. Further, some of the youth in the program may not have government-issued identification, so even some of those who may be willing to continue with the program may still not be able to provide proof of the immigration status that would satisfy HHS and would, thus, become ineligible for services.

NEW YORK JULY 21 2025

Sources: NYC.gov , Big New York News BigNY.com
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