Recent efforts by the Trump administration to fund and promote reentry policies that support communities and individuals returning from incarceration mark an important continuation of earlier work to address gaps in criminal justice. Last month, the U.S. Department of Justice announced a new grant opportunity, the FY25 Public Safety and Mental Health Initiative, with the stated goal of supporting “comprehensive service networks addressing untreated mental illness and substance use at the intersection of mental health, substance use, and justice systems.” The Department will award a total of $42 million in funds to state and local jurisdictions (or, in certain circumstances, non-profit organizations) to focus on four core areas: (1) crisis stabilization centers; (2) treatment services; (3) housing access; and (4) electronic health record (EHR) systems and technology modernization.
These resources, as well as a smaller, related DOJ grant opportunity, the FY25 Smart Reentry Demonstration Program, reflect the administration’s focus on strategies to increase successful reentry and reduce recidivism. They also complement multiple actions by the administration focused on access to health care, and promoting continuity of care at reentry, which have enjoyed bipartisan support on Capitol Hill and across stakeholders, including law enforcement. These include:
Executive Order: In January, the administration issued Executive Order 14379, Addressing Addiction Through the Great American Recovery Initiative. The Executive order creates a new initiative “to drive a new national response to the disease of addiction that will create stronger coordination across government, the healthcare sector, faith communities, and the private sector.” It specifically calls out reentry as one of five priority areas (alongside prevention, early intervention, treatment, and recovery supports) for program integration.
New Guidance: In December 2025, the administration issued new guidance to states to ensure that states suspend rather than terminate individuals’ Medicaid coverage when they are incarcerated. This will reduce coverage gaps that people who are eligible for Medicaid experience post-release. The guidance spells out operational strategies, including options to suspend coverage or benefits, that states can use.
Reentry Planning Grants: Twenty-nine states have been awarded State Planning Grants to Promote Continuity of Care for Medicaid & CHIP Beneficiaries Following Incarceration, with the most recent cohort of states awarded last August. The stated purpose of these grants is “addressing operational barriers and improving systems for continuity of care following incarceration.” Like the new Medicaid suspension policies described above, the grants were enacted on a bipartisan basis by Congress in the Consolidated Appropriations Act of 2024.
These policies build on a history of support that extends across multiple presidential administrations. The first federal initiative to use Medicaid to improve continuity of care at reentry was signed into law by President Trump in 2018, as part of the bipartisan SUPPORT Act. This federal leadership has laid the groundwork for state and local governments across the country to improve health care access and continuity as people return to communities from incarceration.