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.