Legislative Update: Behavioral Health Budget Hearings
Healthy Minds Texas has shared its analysis (powerpoint slides) of the FY 2028–29 Legislative Appropriations Requests, including several funding changes that could affect substance use providers.
HHSC Budget Hearing
September 24 at 10:00 a.m. – 2:00 p.m.
Texas Capitol Extension, Room E2.030
Key substance use findings include:
HHSC’s request includes a $16.6 million General Revenue reduction for substance use services, with no exceptional item requesting restoration.
Treatment funding decreases by approximately $23 million, the largest reduction across the substance use continuum.
Prevention funding decreases by approximately $3.5 million, while recovery funding increases by approximately $10 million.
Substance use services would become approximately 81.5% federally funded, increasing the system’s exposure to potential federal funding changes.
A one-time $2.75 million maternal opioid misuse pilot is not continued.
These reductions are concerning given existing treatment waitlists, provider closures, workforce challenges, and growing demand. Healthy Minds Texas is recommending restoration of the substance use funding reduction and is developing legislation for a dedicated Substance Use Trust Fund.
Medicaid Provider Engagement Meeting
September 24 at 10:00 – 11:30 a.m.
Virtual
This meeting overlaps with the HHSC hearing but may be especially relevant for providers. Topics include peer specialist services, outpatient psychotherapy, and other mental health services. Feedback may inform future Medicaid rate hearings.
Healthy Minds Texas Policy Summit
October 8 at 8:30 a.m. – 4:00 p.m.
Austin
The summit will address the behavioral health workforce, the substance use continuum of care, crisis systems, and community partnerships.
View summit information and register