The Tennessee Department of Mental Health and Substance Abuse Services told the House Finance, Ways and Means Committee on March 5 that it is requesting a mix of recurring and nonrecurring funding in fiscal year 2026 to expand school‑based behavioral health liaisons, shore up crisis services and increase capacity in state inpatient facilities.

The department said the package focuses on scaling evidence‑based programs already in use across urban and rural areas and on addressing workforce and rate pressures that limit provider capacity. Committee members pressed department leaders for operational details and for follow‑up on unspent funds from prior appropriations.

“We determined that this year's request would be targeted to continue to take to scale and shore up those evidence‑based outcomes supported programs that we fund,” the Commissioner, Tennessee Department of Mental Health and Substance Abuse Services, told the committee.

Key requests outlined by the department included:
- $1,000,000 to expand the school‑based behavioral health liaison program, with a stated goal of funding one liaison for each public school.
- $5,100,000 to provide funding and contract staffing to increase capacity at state inpatient facilities (the department said this funding would come from certified public expenditure revenues via TennCare rather than direct state general fund dollars).
- $4,400,000 nonrecurring for the Tennessee Pathways behavioral health scholarship program to support graduate students who agree to work for participating nonprofits after graduation.
- $1,900,000 to increase residential substance use treatment rates.
- $4,000,000 recurring to make prior one‑time rate adjustments for the behavioral health safety net recurring.
- $1,400,000 nonrecurring for the crisis services continuum to address immediate gaps and higher-than-expected demand following 988 rollout.
- $30,700,000 (federal) for the fourth round of the State Opioid Response grant (continuation of existing federal funding). Other grant and program line items were described for wraparound, workforce development and community provider supports.

On workforce and program outcomes, the department told the committee that the school‑based liaison initiative had grown to 390 funded positions statewide. The Commissioner said the number of students receiving direct services via school‑based programs rose 255% over five years and that vacancy rates among providers have fallen in the year since prior rate investments: “year over year vacancy… 21 decrease in vacancy rates. That's 14% among the mental health providers and 7% among addiction treatment providers,” the Commissioner said.

Committee members asked for specific, verifiable operational numbers. Ty Thornton, the department’s chief of hospital operations, answered questions about a new law known in the hearing as “Jillian's Law,” saying, “So to date, there have been a total of 20 patients that have been sent to the Regional Mental Health Institutes under Jillian's law, with 2 of those patients being discharged.”

Deputy Commissioner Matt Yancey described the crisis system and recent utilization: “I mean, we have crisis lines that are operating 24 hours a day. … I believe last fiscal year, there was over 110,000 Tennesseans who called our crisis lines. I think there was maybe close to 70,000 people who received assessments through our mobile crisis teams. … almost 11,000 individuals who received a 23 hour observation in that CSU and almost 6,500 individuals who were served overnight, in the CSU beds,” he said. Later he summarized current infrastructure: “So I believe we have 12 at the moment. I think it's around 130 beds.”

Members also pressed the department on unspent prior appropriations and on capacity at specific state hospitals. The department said staff and the budget office are tracking unspent funds, will seek extensions where appropriate and will report back with final totals and explanations.

On facility projects, the department said the phase‑2 work at the Western Mental Health Institute, which includes kitchen and facility improvements, is under active planning and that the expansion would add 25 beds to the facility’s current total of 150 beds. The department said planning meetings are scheduled and that a timeline estimate will be provided when architects finalize designs. The department also said a new site is being considered for the Moccasin Bend replacement project after an archaeological survey showed the previously considered location was unsuitable.

Committee members asked department staff to provide follow‑up details requested during the hearing: a final accounting of unspent funds, updated wait times for inpatient admission, and estimated timelines for identified construction projects.

The department’s presentation included multiple recurring and grant funding proposals and a request that the committee consider making certain prior one‑time investments recurring so providers do not face sudden funding cliffs. The department emphasized that many of the proposals are intended to be implemented in coordination with TennCare, providers and local partners.