AlaskaHB 5534th Legislature - First Session (2025)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

11 provisions identified: 8 benefits, 0 costs, 3 mixed.

Housing help tied to mental health

The law funds housing linked to mental health needs starting July 1, 2025. It provides $12.235 million for Alaska Housing Finance Corporation projects and $10.15 million for homeless assistance. It adds $1.95 million for special‑needs and beneficiary housing and $575,000 for home repairs to help people keep housing. It also funds a rural housing coordinator in Ketchikan with $135,000. Capital funds may lapse under state law if unused.

More funding for Medicaid and care

The law funds Alaska’s integrated mental health program for FY2026. It provides about $236.7 million for operating costs from July 1, 2025 to June 30, 2026. The Department of Health receives about $159.9 million to run statewide services. Medicaid Services gets about $82.2 million to support care for enrollees. This keeps mental health and Medicaid services available across the state.

How the FY26 budget is funded

The law names the funding sources for FY2026 mental health budgets. It sets aside $177.371 million from the general fund (mental health), $39.614 million from designated state funds, and $19.715 million from other non‑duplicated sources for operating costs. For capital items, it uses $12.475 million from general sources (including a $10.95 million AHFC dividend) and $1.785 million in Mental Health Trust receipts. Total capital appropriations are $14.26 million for FY2026. Funds are available starting July 1, 2025.

Mental health support across agencies

The law funds mental health work in several departments for FY2026. Examples include about $32.8 million for Family and Community Services, $17.5 million for Corrections, and $5.7 million for Natural Resources. It also funds Administration, Education, Labor, Law, Public Safety, Revenue, and the University of Alaska. These dollars support services in schools, prisons, and communities from July 1, 2025 to June 30, 2026.

Pay and benefits for public workers

The law includes money for salary and benefit adjustments for many public employees in FY2026. It funds the monetary terms of listed union contracts. If a listed agreement is not ratified, the related funding is cut in proportion to that agreement. University contracts also need Board of Regents approval.

Rules on Mental Health Trust receipts

The law ties spending to actual Mental Health Trust receipts. If Trust receipts come in lower than estimated, the related appropriation is cut by that shortfall. If receipts exceed the amounts in the Act, the extra can be spent only after required program reviews under AS 37.07.080(h). These rules apply starting July 1, 2025.

Better transportation to reach care

The law funds rides and vehicles so people can get to mental health services. It provides $250,000 for person‑centered transportation and $700,000 for coordinated transportation and vehicles. It also gives $700,000 to the Transportation Department for projects that help people reach care. Funds are available in FY2026 and may lapse under state law if unused.

Infant Learning helps more babies

The Department directs Infant Learning Program grantees to widen who can get services. Children now qualify with a 25% delay in one area, or a 20% delay in two areas. This replaces the old 50% delay in one area rule. The change starts July 1, 2025.

Upgrades for clinics and equipment

The law funds capital upgrades that support mental health services. It provides $1.325 million for Department of Health mental health capital projects. It also provides $500,000 for essential program equipment. These FY2026 capital funds may lapse under state law if unused.

Courts funded for FY2026

The law gives the Alaska Court System $5,187,900 for operating costs. The money keeps courts and court services running from July 1, 2025 to June 30, 2026.

Law takes effect July 1, 2025

The law takes effect on July 1, 2025. All funding and program changes begin then unless another date is named.

Sponsors & Cosponsors

Sponsor

  • HOUSE RULES BY REQUEST OF THE GOVERNOR

    Affiliation unavailable

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 85 • No: 34

House vote 5/20/2025

CC RPT ADOPTED Y33 N7 CCS HB 55

Yes: 33 • No: 7

House vote 4/22/2025

PASSED Y33 N6 E1

Yes: 33 • No: 6

House vote 4/16/2025

AM NO 2 FAILED Y19 N21

Yes: 19 • No: 21

Actions Timeline

  1. (H) EFFECTIVE DATE(S) OF LAW 7/1/25

    7/30/2025House
  2. (H) LINE ITEM VETO AND REDUCTIONS

    7/30/2025House
  3. (H) SIGNED INTO LAW 6/12 CHAPTER 11 SLA 25

    7/30/2025House
  4. (H) LETTER TO AMHTA TRANSMITTED TO GOVERNOR 5/27/25

    7/30/2025House
  5. (H) 11:30 A.M. 5/27/25 TRANSMITTED TO GOVERNOR

    7/30/2025House
  6. (H) EFFECTIVE DATE(S) SAME AS PASSAGE

    5/20/2025House
  7. (H) CC RPT ADOPTED Y33 N7 CCS HB 55

    5/20/2025House
  8. (H) CC REPORT TAKEN UP

    5/20/2025House
  9. (S) EFFECTIVE DATE(S) SAME AS PASSAGE

    5/20/2025Senate
  10. (S) CC RPT ADPTD Y20 N- CCS HB 55

    5/20/2025Senate
  11. (S) CC REPORT TAKEN UP

    5/20/2025Senate
  12. (S) CC REPORT READ

    5/19/2025Senate
  13. (S) CC REPORT: CCS HB 55 RECEIVED 5/18 9:26 P.M.

    5/19/2025Senate
  14. (H) CC REPORT READ AND HELD

    5/19/2025House
  15. (H) MONETARY TERMS PACKET

    5/19/2025House
  16. (H) FISCAL NOTE PACKET

    5/19/2025House
  17. (H) CC REPORT: CCS HB 55 RECEIVED 5/18 9:21 P.M.

    5/19/2025House
  18. (S) Minutes (SHB53)

    5/18/2025Senate
  19. (S) Moved CCS HB 55 Out of Committee

    5/18/2025Senate
  20. (S) CONFERENCE COMMITTEE ON HB53 AND HB55 at 01:00 PM SENATE FINANCE 532

    5/18/2025Senate
  21. (H) Minutes (HHB53)

    5/18/2025House
  22. (H) Moved CCS HB 55 Out of Committee -- Recessed to a Call of the Chair --

    5/18/2025House
  23. (H) CONFERENCE COMMITTEE ON HB53 AND HB55 at 01:00 PM SENATE FINANCE 532

    5/18/2025House
  24. Audio/Video

    5/18/2025House
  25. Audio/Video

    5/18/2025House

Bill Text

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