The United States continues to face a devastating overdose crisis and widespread unmet mental health needs in 2025. Federal policy under the Trump administration is playing a pivotal role in shaping addiction treatment, mental health services, behavioral health programs, and recovery housing. This comprehensive review examines the latest federal initiatives and policies – and their impacts on patients, providers, and policymakers – in a fact-based, politically neutral manner. We’ll explore everything from funding and Medicaid rules to harm reduction, workforce shortages, and housing supports for people in recovery, with data-driven insights and expert perspectives throughout.