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Mental Health

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On Friday, February 6, Department of Human Services (DHS) Secretary Val Arkoosh presented an overview of Governor Shapiro’s proposed Fiscal Year (FY) 2026/27 budget and detailed the projected spending across DHS, which totals $21.94 billion in state funding. The Secretary highlighted that all three Medicaid managed care programs, as well as waiver programs for people with intellectual disabilities and autism, are receiving increases, largely driven by patient needs and costs associated with delivering care. The proposed FY 2026/27 budget includes $39.7 billion in federal funding as well as $5.6 billion from augmentations and additional programs, such as lottery and tobacco funds, making the total DHS funding $67.2 billion.

The Secretary expressed how the proposed budget reflects the direct impacts of HR 1, with significant federal funding at risk. The distribution for the 2026/27 budget is based upon the current structure of Medicaid and other federally funded programs, but the Secretary noted that beginning in 2028, changes in Medicaid financing rules will remove $20 billion from Pennsylvania’s Medicaid program over the following decade.

Budget Highlights and Investments

  • Investments in Health:
    • Food is Medicine: $900,000 (federalizes to $2.3 million) in state funds to launch a pilot program that will provide nutritionally appropriate food to improve quality of life and health outcomes while lowering overall health care costs for Medicaid recipients with significant health care needs.
    • Housing Stability: $1 million in state funds (federalizes to $2.5 million) to launch a pilot that will connect people experiencing homelessness to stable housing and services that improve health and care management.
    • Reentry Supports: $900,000 in state funds (federalizes to $2.7 million) to provide pre-release coverage (up to 90 days prior to release from a State Correctional Institution) for substance use care and intensive case management.
  • Continuing ODP Multi-Year Growth Strategy: Building upon Shapiro’s 2024 multi-year strategy to expand access to home and community-based services and effectively end the emergency waiting list of adults with intellectual disabilities with autism, the proposed budget allots $30 million in state funds, which federalizes to $66.2 million. This will allow for 850 more people to be served in the Community Living Waiver and 400 more people to be served in the Consolidated Waiver.
  • Supporting 988 Call Centers and Crisis Services: The proposed budget includes a $10 million investment in the crisis response workforce to help 988 call centers, as well as $5 million in state funds to continue prior year commitments for emergency behavioral walk-in centers.
  • Sustaining Early Intervention Rate Increase: The Secretary stated that the EI line item in the executive budget reflects the changing state cost to run the program and not an anticipated cut in funding. The release of the DHS Blue Book will have more information about the total funding with federal match. DHS intends to keep the new, updated rates from the 2025/26 budget, and revised rates will be released soon.
  • County Base Mental Health Services Funding: RCPA has confirmed that there will be no allocation increase for county base funding. While previous budgets had included $20 million for county base mental health funding, it was not included in the 2025/26 budget or the proposed 2026/27 budget.

Due to technical difficulties, DHS was unable to record the webinar, but the presentation slides and transcript can both be viewed.

Please contact your RCPA Policy Director with any questions or concerns.

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The Office of Mental Health and Substance Abuse Services (OMHSAS) has announced that Psychiatric Rehabilitation Services (PRS) has been added to the Medical Assistance Program Fee Schedule, effective January 1, 2026.

On January 30, 2026, the Centers for Medicare & Medicaid Services approved the addition of PRS as a rehabilitative service to the Medicaid State Plan, leading to the issuance of OMHSAS-26-01, “Payment for Psychiatric Rehabilitation Services.” Prior to the inclusion in the Medicaid State Plan, PRS was available only to MA beneficiaries enrolled in Behavioral Health HealthChoices as an in lieu of service. PRS is now available as a state plan service to MA beneficiaries in the Fee-for-Service and Behavioral Health HealthChoices delivery systems.

The published bulletin OMHSAS-26-01 can be found here. Please contact RCPA COO and Mental Health Director Jim Sharp with any questions.

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The Office of Mental Health and Substance Abuse Services (OMHSAS) will be hosting their Stakeholder Webinar on Thursday, February 12, 2026, from 3:00 pm – 4:00 pm. Please register for the webinar here. After registering, you will receive a confirmation email containing information about joining the webinar.

For those that want to join via phone:
Call-in Number:  +1 (562) 247-8321
Audio Access Code: 385-114-169

The meeting agenda can be found here.

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RCPA remains a leading voice for Pennsylvania’s health and human services providers, advocating for policies that support access, sustainability, and quality care. The 2025 Year in Review highlights key accomplishments that reflect our collective advocacy efforts, strengthened alliances, and measurable progress toward shared priorities. These successes help ensure providers can continue delivering critical services to individuals, families, and communities across the Commonwealth.
Read RCPA’s 2025 Year in Review
If you have any questions or comments regarding the Year in Review, please contact your respective RCPA Policy Director.

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The Independent Regulatory Review Commission (IRRC) has released their comments on the proposed rulemaking for the Mental Health Procedures Act. The IRRC summarized the questions and concerns that were submitted by legislators, providers, and stakeholders during the public comment period and made recommendations for clarity. The Department of Human Services (DHS) must consider and respond to the IRRC’s comments and all comments submitted during the comment period as they prepare their final form regulations.

The majority of the comments were in regard to proposed “Section 5100.33. Patient’s access to records and control over release of records,” where commentors voiced concern of potential conflict with existing statutes. The IRRC also responded to the legislative comments from Rep. Doyle Heffley, Republican Chairman of the House Human Services Committee, who emphasized the importance of resolving the questions asked by providers and stakeholders.

Please contact RCPA Policy Associate Emma Sharp with any questions.

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Registration for the Pennsylvania Commission on Crime and Delinquency’s (PCCD) 2026 CJAB Conference “Driving Change Together” is now open. The conference will be held April 21–22 at the Penn Stater Hotel and Conference Center in State College. This year’s event will bring together criminal justice, behavioral health, and treatment partners for an engaging and thought-provoking event, featuring national and local experts who will examine rethinking the criminal justice system, shifting from reactive measures to cooperative solutions to foster meaningful change.

Criminal justice advisory boards (CJAB) are local planning and problem-solving groups.  PCCD supports CJABs in getting started and with assistance on strategies and project implementation.

To register for the conference and view the agendas and session descriptions, visit the 2026 CJAB Conference web page on PCCD’s website.

The deadline for the discounted room rate of $139 is Friday, March 20.

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RCPA will reengage with all members, non-members, and systems-wide behavioral health stakeholders to participate in the Mental Health Safety Net Coalition. The Coalition is focused on developing strategies, activities, and engagement opportunities to support behavioral health funding in the Commonwealth.

The Coalition will have its first meeting on Friday, February 13, 2026, from 12:00 pm – 1:00 pm. This meeting will give the group an opportunity to review last year’s budget, Governor Shapiro’s proposed budget, and initial strategies for the Fiscal Year (FY) 2026/27. It will also give us an opportunity to develop questions for legislators for the DHS budget hearings in late February and early March. Register for the meeting by contacting Emma Sharp, RCPA Policy Associate.

As the group continues to meet, we will develop our overall advocacy blueprint to ensure the communication of our message and stakeholder engagement is focused on protecting and preserving our mental health service delivery system.

The meetings will be held via Microsoft Teams; information will be sent to those interested in the Coalition. RCPA invites all to participate. If you would like to join the Coalition or have any questions, please contact Emma Sharp.

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