In 2026, there will be a large increase in funding for community mental health services because the federal government has announced approximately $800 million of new block grants to the states and territories. This funding — provided through the Substance Abuse and Mental Health Services Administration (SAMHSA) — will improve community mental health services by providing a multitude of crisis care, outpatient care, housing assistance and recovery support services to people who suffer from serious mental illnesses or substance abuse. For some communities, particularly rural and under-served, community mental health services are often the first and only lifeline when someone needs help.
The money will be used by the states to enhance the equipment and operations of the 988 crisis call centers, assist mobile response teams, support peer-support networks, and provide tailored programs for children, veterans, and people experiencing homelessness. Additionally, these types of community mental health service-related investments will allow for people who are in crisis to receive care closer to home versus using emergency rooms, police, or jails for assistance. The timing of these grants is very important as many providers are reporting very long wait times for patients, as well as extremely high levels of burnout among staff members providing direct care.
At the individual level, having more community-based mental health resources means that individuals can walk into any of these facilities whenever they need to talk to someone, no matter how much or how little they may want or need to share, in order to get the support they need. Families that support someone who has an ongoing challenging condition often see their local community‑based mental health resources as the difference between being able to support their family member to either be successful or fall further from success.
Advocates say that ongoing funding — not just a temporary influx of funds — is critical to maintain properly staffed and stable long-term resources for these services to remain flexible and innovative. As we progress through 2026, communities will be closely monitoring how the federal funds provided in 2021 manifest themselves into real individuals receiving more accessible and dignified care.
Source: U.S. Department of Health and Human Services – SAMHSA Block Grants Press Release
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