Jim Sharp • February 4, 2026

Senate Passes FY26 Funding for Mental Health and SUD

Author

Jim Sharp

Date

February 4, 2026

Share

From our partners at the National Council for Mental Wellbeing:

After a brief partial shutdown on Feb. 3, Congress passed an amended funding package that includes funding for five appropriations bills; the package now goes to the president’s desk for signature. The package also includes a two-week continuing resolution to temporarily fund the Department of Homeland Security (DHS) while a longer term deal is negotiated. If no funding deal is reached for DHS within the two-week timeframe, it is possible another partial shutdown will occur; however, Health and Human Services (HHS) programs would not be impacted.


Funding for HHS is included in the final fiscal year (FY) 2026 funding for the Labor, Health and Human Services, Education, and Related Agencies (LHHS) bill. See the Consolidated Appropriations Act, 2026 bill text and its accompanying report language.


Total funding for the Substance Abuse and Mental Health Services Administration (SAMHSA) was provided at $7.4 billion, relatively level to funding provided in FY24, when appropriations bills were last enacted (FY25 saw a year-long continuing resolution rather than an appropriations bill).


Overall, many mental health and substance use programs saw level or slightly increased funding. This is a tremendous win for the field, particularly in a challenging fiscal environment.

_______________________________________________________________________

The Medicare telehealth waivers expired on January 30, 2026; and after a brief lapse in the telehealth waivers and a partial shutdown of the federal government, this passage restores continuity to Medicare telehealth coverage and a return to permanent, pre-pandemic policy. The extension will maintain key flexibilities, including expanded originating sites, geographic waivers, and eligibility for certain providers that would otherwise be unavailable under permanent Medicare telehealth rules. Additionally, this will apply retroactively and cover the lapse period for the delivery and billing of these services.


Additional language in the agreement includes a requirement that the Department of Health and Human Services (HHS) notify the committee at least three days prior to announcing or providing notice of a grant termination and directs SAMHSA to consult with Congress before issuing a funding opportunity announcement. This language provides additional congressional oversight in the agency grant making process.


If you have any questions, please contact RCPA COO & Mental Health Division Director Jim Sharp.

< Previous Post

Next Post >
PA ODP logo with dark blue border

ODP Updates the MAAC on Paid Relative Caregiving & Travel Limitations

By Tim Sohosky • May 29, 2026
On Thursday, May 28, the Office of Developmental Programs (ODP) provided an update to the Medical Assistance Advisory Committee (MAAC) regarding current policies and upcoming regulatory changes following a recent Commonwealth Court decision. On February 17, 2026, the PA Commonwealth Court issued a decision in Dunkelberger v. Department of Human Services that determined that ODP’s limitations on provider model services (specifically the 40/60-hour caps and 90-day travel maximums) were null and void. The decision was based on process rather than policy validity; the Court found that these limitations were not properly promulgated as regulations in accordance with the Commonwealth Documents Law and Regulatory Review Act. To maintain a balanced approach between flexibility and oversight, ODP is moving forward with the following actions: Regulatory Amendments: ODP will amend regulations to establish formal authority for setting service delivery limits that support individual welfare and program integrity. Self-Directed Model Agreements: ODP has already modified agreements for self-directed models to clarify limits on overtime, combined relative service provision, and travel restrictions. Travel Restrictions: Due to the inability to monitor services effectively over long distances, service provision will now be limited to Pennsylvania and contiguous states. Waiver Changes: ODP will seek modifications through the amendment process to the Consolidated, P/FDS, Community Living, and Adult Autism Waivers to include: New requirements for agencies providing IHCS and Companion services to disclose a DSP's relationship to participants; and Strengthened programmatic oversight and integrity measures. Life Sharing Alternative: For participants requiring more than 60 hours of paid care from a relative, the Life Sharing (24/7) service model remains the recommended alternative. ODP anticipates a public comment period for these proposed waiver changes beginning in January 2027.
Two men with intellectual disabilities working happily on a tablet.

Shapiro Administration's Strategic Investments in ID/A Community Lead to Highest Number of Pennsylvanians Ever Served in HCBS

By Tim Sohosky • May 28, 2026
Press Release from DHS : Published May 27, 2026
Yellow screen with the words

ODP Provides Updates to PBC 2026/27 Residential Pay-for-Performance

By Cathy Barrick • May 28, 2026
The Office of Developmental Programs (ODP) has shared ODPANN 26-039 . The purpose of this communication is to provide updated details about the Residential Performance-Based Contracting (PBC) Pay-for-Performance (P4P) initiatives for Fiscal Year 2026/27. Updates are provided in red . Please review the announcement for more details. Visit here to access the Pay for Performance (P4P): Residential Rural Capacity Expansion Plan template .