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From our partners at the National Council on 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.
Today, February 3, Pennsylvania Governor Josh Shapiro is set to deliver his 2026/27 proposed budget to the PA General Assembly with the backdrop of ongoing concerns regarding looming funding cuts at both the Federal and State levels. RCPA will cover the presentation and work to provide a global overview of the Governor’s budget design, as well as areas that may impact members, by COB today. Throughout the week, RCPA Policy Directors will be conducting a deeper review of the impacts, as well.
Additionally, we understand DHS Secretary Dr. Valerie Arkoosh will give a webinar later in the week to present the DHS specifics in the proposed plan. As details become available, RCPA will communicate the information to members.
Governor Shapiro’s budget presentation is set to begin at 11:30 am and can be watched through the following streaming links:
If you have any questions, please contact your respective RCPA Policy Director.
The Department of Human Services (DHS) has launched a new website for the PA Rural Health Transformation Plan, containing information on goals as well as links to the full plan and news updates.
While a formal RFP process has not yet been released, providers can submit the following inquiry form. This brief survey provides each organization with an opportunity to introduce your agency and services you offer, ask questions regarding the Rural Health Transformation Plan, and identify the Rural Care Collaborative region(s) where you and/or your organization is based or provides services (see map below). Once submitted, DHS will review and respond to your inquiry as soon as possible.

Providers and stakeholders may also sign up for updates on the Rural Health Transformation Plan.
If you have any questions, please contact RCPA COO Jim Sharp.
In response to the Office of Mental Health and Substance Abuse Services’ (OMHSAS) proposed Regulation #14-558: Mental Health Procedure RCPA, in partnership with its members, has submitted public comments.
The proposed regulations align the Department’s regulations with the Mental Health Procedures Act by adding definitions of “business associate” and “covered entity,” and adding those entities to the list of parties to which the Department may disclose confidential information.
RCPA did request that OMHSAS provide further clarification on the impacts and intersects of the proposed standards for youth and parental consents outlined in Act 65.
RCPA fully supports the proposed regulations that will align departmental regulations with Act 32 of 2022 and the Health Insurance Portability and Accountability Act of 1996 (HIPAA) requirements.
We look forward to working with the Department in the communication and ongoing implementation of the proposed regulatory changes, including the release of a Regulatory Compliance Guide after final promulgation. If you have any questions, please contact RCPA COO and Mental Health Services Director Jim Sharp.
From the National Council for Mental Wellbeing
As RCPA continues to support efforts to realign Pennsylvania’s integrated behavioral and physical health initiatives with the return to the CCBHC model, our partners at the National Council have issued this advocacy alert on recent legislation expanding States opportunities in serving our vulnerable communities.
This opportunity will focus member reach out to our Senators about a new bipartisan bill that would help sustain and expand access to Certified Community Behavioral Health Clinics (CCBHCs) in Pennsylvania and across the country.
S 3402 would give states and organizations the ability to continue growing the behavioral health workforce, expand services for older adults and people eligible for both Medicare and Medicaid, and help more communities establish CCBHCs.
Right now there are three co-sponsors in the Senate. If enough people contact their Senators, we can keep the momentum going!
We also included some more detail about the legislation via the above “take action” link if you’d like to dive deeper. The letter takes about 1–2 minutes to send. If you want to call your Senators’ offices and leave a message too, we made a script for you to use – just follow the prompts on the page.
If you have any questions please contact RCPA COO and Mental Health Services Director Jim Sharp.
The Children’s Trust Fund (CTF) provides small grants to local community-based programs/services that prevent child abuse and neglect before an incident occurs. The Children’s Trust Fund (CTF) Request for Application (RFA) was posted on eMarketplace today, January 5, 2026. The press release is being shared through DHS comms, PA Key comms, and a special announcement in the e-News.
RCPA, as part of several statewide work groups and task forces, wishes to share this with members, though you may receive this through other communications networks. The RFA is only available for 30 days, due no later than February 5, 2026.
If an applicant has any questions regarding this RFA, the applicant must submit those questions via email, with the subject line “25-RFA-13772 Question” to the RFA Issuing Officer named in Part 1, Section I-2 of this RFA. The Issuing Officer shall post all written answers to the questions submitted on the Department of General Services (DGS) website at eMarketplace as an addendum to this RFA.
You may view the Request for Application online at eMarketplace.