Alva Review-Courier -

LITTLE ROCK, Ark. (AP) — Substance abuse treatment providers in Arkansas have been laying off employees and turning away some patients since the state slashed federal subsidies, and officials warn this could lead to more homelessness, kids in the foster system and children born as addicts.

The state's annual substance abuse block grant was reduced from more than $13 million to just under $8 million for the fiscal year ending June 30. Much of the grant — with matching state subsidies — is allotted to eight treatment providers in Arkansas, which then subcontract to other providers.

One subcontra...