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AlaskaHB 26534th Legislature - Second Session (2026)HouseWALLET

APPROP: MENTAL HEALTH BUDGET

Sponsored By: HOUSE RULES BY REQUEST OF THE GOVERNOR

Became Law

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Bill Overview

Analyzed Economic Effects

19 provisions identified: 17 benefits, 0 costs, 2 mixed.

FY2027 mental health budget and safeguards

The law funds Alaska’s integrated mental health program with $240,805,800 for FY2027. Money comes from the General Fund, dedicated substance-use and recidivism funds, and Mental Health Trust receipts. If Trust receipts are higher than planned, the state can use the extra after a required program review. If Trust receipts are lower, the affected appropriations are cut dollar‑for‑dollar. All funding takes effect July 1, 2026.

Keep Alaska Psychiatric Institute running

The law gives $22,237,600 to the Alaska Psychiatric Institute for FY2027. $21,575,600 funds operations. $662,000 pays for rent, operations, and maintenance. This keeps inpatient psychiatric care available starting July 1, 2026.

Medicaid funding and higher nursing pay

The law gives $82,155,800 to Medicaid Services for FY2027. It also directs the health department to use existing funds to raise Medicaid private duty nursing rates. RN pay moves from $20.00 to $30.00 per service increment. LPN/LVN pay moves from $18.75 to $26.25. Changes start July 1, 2026.

Mental health care in corrections

Corrections health programs receive $10,209,500 for FY2027. $8,565,600 funds behavioral health care and $1,643,900 funds substance abuse treatment for people in custody. Community Residential Centers receive $6,970,500 to keep residential programs running. Funding starts July 1, 2026.

More grants for treatment and recovery

The law provides $54,062,700 for Behavioral Health in FY2027. It includes $32,904,100 for treatment and recovery grants. It also uses unspent balances from the alcohol, recidivism reduction, and marijuana treatment funds as of June 30, 2026. Funding begins July 1, 2026.

Services for seniors and people with disabilities

Senior and Disabilities Services get $18,531,900 for FY2027. $13,667,200 funds Early Intervention and Infant Learning. Money also supports community grants, temporary assisted living help, and advisory councils. Services start July 1, 2026.

Housing and accessibility help for beneficiaries

AHFC gets $10,150,000 for Homeless Assistance and $1,950,000 for Beneficiary & Special Needs Housing. It also funds a Rural Housing Coordinator in Ketchikan ($135,000). The law adds $1,150,000 for home modifications, $500,000 for accessibility fixes, $250,000 for person‑centered transportation, $250,000 for universal changing spaces, and $700,000 for coordinated vehicles. AHFC operations receive $200,000. These funds improve housing stability, access, and transportation for Trust beneficiaries and people experiencing homelessness.

Public safety and victim services funding

The law provides $1,757,500 for FY2027 to public safety and victim services. Alaska State Troopers get $60,000. The Police Standards Council gets $80,000 and may use certain unspent statutory receipts from June 30, 2026. The Integrated Victim Assistance Council receives $1,617,500.

Support for youth justice services

Juvenile Justice gets $1,770,900 for FY2027. It funds McLaughlin Youth Center ($989,800), Fairbanks ($143,300), and Bethel ($211,800) youth facilities. It also funds Probation Services ($326,000) and Juvenile Justice Health Care ($100,000). Money is available July 1, 2026.

Therapeutic courts and public defense funding

Therapeutic Courts receive $4,678,200 and trial courts get $634,800 in FY2027. The law also funds legal help: $2,892,500 for the Office of Public Advocacy and $1,426,000 for the Public Defender Agency. These dollars support treatment‑focused court programs and court‑appointed legal services starting July 1, 2026.

Trust lands management and legal support

Natural Resources receives $6,438,200 for FY2027 to manage Mental Health Trust lands. $5,542,400 funds lands administration and $895,800 funds facility operations and maintenance. The Department of Law’s Civil Division also gets $100,100 for health, safety, and welfare work, using some unspent inter‑agency receipts from June 30, 2026.

Coordinated health and complex care programs

The law provides $8,288,300 in FY2027 for Coordinated Health and Complex Care. The funds help run programs that coordinate services for people with complex needs. Funding begins July 1, 2026.

Help for child welfare and foster care

The law gives $2,226,900 to Children’s Services for FY2027. It funds family preservation ($726,000), foster care augmented rates ($500,000), and foster care special needs ($782,900). It also supports management and frontline social workers. Funding begins July 1, 2026.

Mental Health Trust operations and ombudsman

The Alaska Mental Health Trust Authority receives $6,718,500 for FY2027. $5,931,400 funds Trust operations. $787,100 funds the Long Term Care Ombudsman Office, which helps residents in long‑term care settings.

Public health programs and facility licensing

Public Health gets $5,133,000 for FY2027. It funds Women, Children and Family Health, chronic disease prevention, vital records, and facility operations. The law also adds $283,000 for health facility and residential licensing, using some unspent license fees from June 30, 2026. Funding begins July 1, 2026.

Student and school achievement support

Education Support and Administrative Services gets $532,200 for FY2027. The funds support Student and School Achievement programs run by the education department. Funding starts July 1, 2026.

Support for vocational rehabilitation administration

Vocational Rehabilitation receives $100,000 for FY2027. It can use some unspent receipts from prior years collected under the federal indirect cost plan. This supports administration and program capacity starting July 1, 2026.

University funding tied to mental health

The University of Alaska receives $3,431,800 for FY2027. $3,381,800 goes to the Anchorage campus and $50,000 to the Troth Yeddha’ campus. Funds support campus operations linked to the mental health program.

Salary and benefit changes for public employees

The law funds FY2027 salary and benefit adjustments for listed public‑sector bargaining units tied to this mental health budget. If a listed agreement is not ratified or approved, the related appropriation is reduced proportionally. These adjustments only cover costs within the integrated mental health program.

Sponsors & Cosponsors

Sponsor

  • HOUSE RULES BY REQUEST OF THE GOVERNOR

    Affiliation unavailable

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

Actions Timeline

  1. (S) -- MEETING CANCELED --

    5/13/2026Senate

  2. (S) CONFERENCE COMMITTEE ON HB263 AND HB265 at 04:00 PM SENATE FINANCE 532

    5/13/2026Senate

  3. (H) -- MEETING CANCELED --

    5/13/2026House

  4. (H) CONFERENCE COMMITTEE ON HB263 AND HB265 at 04:00 PM SENATE FINANCE 532

    5/13/2026House

  5. (S) Minutes (SHB263)

    5/12/2026Senate

  6. (S) Heard & Held

    5/12/2026Senate

  7. (S) CONFERENCE COMMITTEE ON HB263 AND HB265 at 04:00 PM SENATE FINANCE 532

    5/12/2026Senate

  8. (H) Minutes (HHB263)

    5/12/2026House

  9. (H) Heard & Held

    5/12/2026House

  10. (H) CONFERENCE COMMITTEE ON HB263 AND HB265 at 04:00 PM SENATE FINANCE 532

    5/12/2026House

  11. (S) LIMITED POWERS FREE CONFERENCE GRANTED

    5/12/2026Senate

  12. (H) LIMITED POWERS FREE CONFERENCE GRANTED

    5/12/2026House

  13. Audio/Video

    5/12/2026House

  14. Audio/Video

    5/12/2026House

  15. (S) Minutes (SHB263)

    5/11/2026Senate

  16. (S) Heard & Held

    5/11/2026Senate

  17. (S) CONFERENCE COMMITTEE ON HB263 AND HB265 at 04:00 PM SENATE FINANCE 532

    5/11/2026Senate

  18. (H) Minutes (HHB263)

    5/11/2026House

  19. (H) Heard & Held

    5/11/2026House

  20. (H) CONFERENCE COMMITTEE ON HB263 AND HB265 at 04:00 PM SENATE FINANCE 532

    5/11/2026House

  21. (H) JOSEPHSON (CHAIR), SCHRAGE, STAPP

    5/11/2026House

  22. (H) CONFERENCE COMMITTEE APPOINTED

    5/11/2026House

  23. (S) HOFFMAN (CHAIR), STEDMAN, CRONK

    5/11/2026Senate

  24. (S) CONFERENCE COMMITTEE APPOINTED

    5/11/2026Senate

  25. (S) FAILED RECEDE (S) AM Y- N20

    5/11/2026Senate

Bill Text

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