Senate Finance advances SB1 trust fund and SB2 appropriations as part of behavioral health package

The Senate Finance Committee advanced two companion bills that accompany the governance substitute for Senate Bill 3.

Senate Bill 2 (appropriations substitute): The committee approved a substitute for Senate Bill 2 that provides immediate appropriations and capacity-building funding for components of the behavioral health package. The substitute adds $60 million to reach a $200 million appropriations package intended to fund crisis line coordination, patient navigation, school-based behavioral health expansions and other capacity-building items distinguished in the bill text. Specific appropriations discussed in committee testimony included funding for coordination of 988 and 911, $9 million for patient navigation supports, $9 million to the Department of Health for youth behavioral health supports, $6 million to the Public Education Department for school-based initiatives, $1.8 million for provider training, and a $200,000 allocation to the Health Care Authority to begin project management functions in the current fiscal year. The substitute also allocates three grow appropriations of $10 million each for regional certified peer support workers, justice liaisons, and regional behavioral health service staff. The committee adopted the substitute on a roll call vote (10-1).

Senate Bill 1 (Behavioral Health Trust Fund): The committee considered and adopted an amendment that removed the immediate transfer of $1 billion from the general fund and adjusted reserve calculations to include the trust fund for 2026 and 2027 (amendment adoption by voice). After testimony in support from chambers of commerce, providers and advocacy groups, the committee moved Senate Bill 1, as amended, to the next stage by recorded vote (11-0).

Committee witnesses said the appropriations in SB2 are designed to stand up system capacity (project manager, patient navigation, school supports and crisis triage coordination) so Medicaid and other recurring funding can be used effectively. Supporters told the committee the combined package addresses longstanding fragmentation in behavioral health services; some committee members said more implementation detail and workforce recruitment plans are still needed.

The committee actions on SB1 and SB2 will be tied to the substitute for SB3 that sets governance and accountability structures; sponsors said passage of all three pieces would be necessary to implement regional behavioral health plans and build capacity statewide.