Budget Invests More Than $196 Million To Strengthen Mental Health Care Statewide

Strengthens New York’s Involuntary Commitment Laws and Kendra’s Law

$160 Million To Create 100 New Forensic Inpatient Psychiatric Beds

Funding Builds on Governor Hochul's Nation-Leading $1 Billion Plan To Transform the Mental Health Care System

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Governor Kathy Hochul today signed new legislation as part of the FY26 Enacted Budget to make major mental health investments for New Yorkers. Building on the investments from her $1 billion multi-year plan to strengthen the State’s continuum of mental health care, the FY26 Enacted Budget invests more than $196 million, including $160 million to add 100 new inpatient psychiatric beds on Wards Island in New York City.

“For too long, mental health was overlooked and stigmatized — but when I took office, I said no more,” Governor Hochul said. “This year’s budget builds on our $1 billion mental health investment and ensures New Yorkers living with mental illness get the care they need and deserve.”

The FY26 Enacted Budget includes historic new investments to strengthen mental health care including:

• New legislation to strengthen New York’s involuntary commitment laws and Kendra’s Law, to deliver compassionate care to those who need it most
• $16.5 million to enhance county-level implementation of Assisted Outpatient Treatment or ‘AOT’ programs in addition to $2 million for the State Office of Mental Health to add staff responsible for overseeing AOT
• $8 million to establish up to five new clubhouses and four Youth Safe Spaces
• $1.5 million to expand Teen Mental Health First Aid for high school students
• $2 million in investments to create a hospital-based ‘peer bridger’ program and expand the Intensive and Sustained Engagement Teams
• $1.4 million for OMH to add street medicine and street psychiatry to Safe Options Support teams
• Strengthening the continuum of mental health care by investing $160 million to create 100 new forensic inpatient psychiatric beds in New York City.
• $25 million to continue strengthening outreach to unsheltered New Yorkers on the subway through the creation of “connection centers” at subway stations and enhancement of services at specialized “Welcome Center” shelter facilities

Supporting Individuals With Serious Mental Illness

Involuntary Commitment
The Budget adds language to New York’s involuntary commitment statute to define the ‘likelihood to result in serious harm’ to include a person at substantial risk of physical harm because their mental illness makes them unable or unwilling to provide for their own essential needs such as food, clothing, necessary medical care, personal safety, or shelter due to their mental illness. This change addresses gaps in the existing standard, bringing New York into alignment with 43 other states with similar standards.

Assisted Outpatient Treatment (Kendra’s Law)
The Budget provides $16.5 million to enhance county-level implementation of Assisted Outpatient Treatment or ‘AOT’ programs and $2 million for the State Office of Mental Health to add staff dedicated to monitoring AOT, enhance statewide training and provide additional support for counties and providers.

The Budget also modifies the AOT statute (known as “Kendra’s Law”) so that new petitions can be filed within six months of an order expiring in instances when the individual becomes disconnected from care and experiences mental health symptoms that substantially interfere with their ability to comply with treatment, or result in emergency treatment, inpatient admission, or incarceration.

100 New Forensic Inpatient Psychiatric Beds
The Budget adds 100 forensic beds aimed at restoring justice-involved individuals to competency to stand trial in New York City. This complements Governor Hochul’s efforts to expand psychiatric bed capacity across New York State. Since Governor Hochul took office, New York State has added 875 psychiatric beds, including 550 that were brought back online at community-based hospitals, and 325 at State-operated psychiatric centers, marking the largest expansion at these facilities in years. In addition, the State has funded 109 new beds now under development at community based hospitals and is preparing to build a new 75-bed Transition to Home unit at the Creedmoor Psychiatric Center in Queens.

Continuing to Address Unsheltered Homelessness
To strengthen outreach to unsheltered New Yorkers, especially those who use the subway system, the State will build out up to five drop-in locations at subway stations to help homeless individuals out of the station platforms and into spaces where their needs can be assessed and they can be connected to additional resources and care. At these locations, which will be called “Connection Centers,” outreach workers including the State’s Safe Option Support teams will be able to continue their engagement with unsheltered New Yorkers, building the trust that will encourage them to accept services, and helping them access the supports they need to find stability, including placements into specialized overnight shelter settings. Additionally, the State is continuing to collaborate with partners at the City level, making investments that will enhance capacity and resources at existing, specialized NYC DHS shelter locations, such as “Welcome Centers,” that are designed to serve unsheltered New Yorkers, especially those leaving the subway system.

Creating Opportunities For Growth And Recovery

New Clubhouses and Youth Safe Spaces
The Budget provides $8 million to establish up to five new clubhouses and four Youth Safe Spaces. Clubhouses are member-driven programs that provide individuals with serious mental health conditions access to social support, life skills training, employment resources and a sense of community, and Safe Spaces provide a place for young people to access behavioral health wellness resources, foster positive relationships with their peers and receive support in a comfortable setting.

Street Medicine and Street Psychiatry to SOS Teams
The Budget includes $1.4 million for OMH to add street medicine and street psychiatry to Safe Options Support teams, allowing them to provide immediate medical and psychiatric care to homeless individuals. With 28 teams across the State, the SOS program has now helped permanently house more than 1,000 individuals, including 147 in OMH-licensed housing.

Teen Mental Health First Aid
The Budget includes $1.5 million to expand Teen Mental Health First Aid for high school students, training both teens and adults who work with teens to identify, understand and respond to signs of mental health and substance use challenges.

Expanding Access to Peer Support Services
The Budget invests an additional $2 million into creating a hospital-based ‘peer bridger’ program to help transition individuals leaving inpatient care back into the community and expanding Intensive and Sustained Engagement Teams (INSET) to provide peer-led support to individuals during their recovery journeys and help service recipients manage crucial transitions of care.