MDHHS Director Elizabeth Hertel meets with health leaders in Genesee County to discuss state’s commitment to increase behavioral health service access for families

Nearly $186 million included in Governor Whitmer’s FY26 budget for resources

LANSING, Mich. – Michigan Department of Health and Human Services (MDHHS) Director Elizabeth Hertel joined with behavioral health leaders, peer coaches and others at Genesee Health System (GHS) to discuss how the state is continuing its commitment to ensuring Michigan families can access the services they need and at the appropriate service level. Gov. Gretchen Whitmer’s recently announced FY2026 budget includes $185.9 million in investments to help ensure the behavioral health needs of Michigan residents are met.

The FY26 proposal builds upon $250 million dedicated to expanding behavioral health service availability and levels of care in FY25 and allocations in FY23 and FY24 totaling nearly $364 million.

“Our goal is to ensure Michigan families can access services when they need them, where they need them and at the level of care they need,” said Elizabeth Hertel, MDHHS director. “The funding included in Governor Whitmer’s budget will help us continue momentum as we expand availability of community-based services across the state.”

GHS is slated to receive $5.6 million from the state in FY25 and received $8.5 million in FY24. The health system operates one of the state’s 35 Certified Community Behavioral Health Clinics (CCBHC), which serve all individuals with a behavioral health diagnosis, regardless of insurance or ability to pay. These clinics provide nine comprehensive behavioral health services, including 24/7 mobile crisis response and medication-assisted treatment for substance use disorders. 

In FY24, 30 Medicaid-funded CCBHCs provided services to more than 130,000 unique individuals across Michigan. Through the CCBHC expansion, 82% of Michiganders now live in a county with 24/7 mobile crisis response.

“GHS is honored to have Director Hertel visit and discuss access to services,” said Danis Russell, Genesee Health System CEO. “The demand for mental health services continues to increase, and it is good to know we have strong partners at the state who will fight for the communities we serve.”

GHS also offers an array of health and behavioral health services, including urgent care, autism services, a mobile mental health unit, family navigator services and a housing program. In spring 2025, GHS will open an Adult Crisis Stabilization Unit (CSU) to provide immediate assessment and support to anyone in a behavioral health crisis for up to 72 hours.

These units are also equipped to manage and treat minor medical conditions so individuals in a behavioral health crisis aren’t sent to the emergency room for basic medical care.

Two CSUs have been operating since mid-2024: Network 180 in Kent County and Detroit Wayne Integrated Health Network in Wayne County. These two facilities have helped more than 1,600 individuals.

Adult CSUs are being planned in six additional counties including Clinton, Eaton, Ingham, Kalamazoo, Macomb and Oakland, with more sites also being planned in Wayne County.

FY2026 Budget Recommendation

Governor Whitmer’s FY26 budget recommendation includes the following investments in behavioral health:

• $46.8 million of opioid settlement dollars for prevention, treatment, harm reduction, recovery and data collection for those affected by the opioid epidemic.
• $15.2 million to begin operating the new state psychiatric hospital in Northville, replacing two old, outdated hospitals with a new, 264 bed facility, increasing systemwide capacity by 54 beds.
• $2.5 million for access to mental health services to support behavioral health resources for first responders and public safety staff.
• $17.5 million to improve adoption supports to expand access to comprehensive physical and behavioral health services. 
• $7.5 million from the newly proposed vape tax for children’s coordinated health care to support direct services and grants with partners designed to implement evidence-based mental health practices, coordinate assistance to families bridging services across the behavioral health network for children needing multiple services, and provide counseling and other strategies needed to support children with the successful transition from residential facilities back into the community.
• $96.4 million to increase the Medicaid spend down threshold. Individuals whose income is initially too high to qualify for Medicaid can "spend down" to Medicaid eligibility by offsetting their income with incurred medical expenses. The investment increases the spend down requirement from the current 38% up to 100% of the federal poverty level, allowing individuals with significant medical needs to qualify for Medicaid coverage with much less out-of-pocket spending.

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