Arlington Department of Human Services presents FY26 budget priorities as demand grows across programs

Arlington County Department of Human Services leaders on March 13 outlined their proposed fiscal year 2026 budget and described growing demand across Medicaid, SNAP, behavioral health and housing-related services.

The presentation, delivered by DHS Director Anita Friedman and deputy Deborah Warren, said DHS serves roughly 50,000 residents annually through about 100 programs and expects roughly 820 staff in FY26. The department described a multiyear rise in expenses and full-time equivalents driven by growth in direct services and federal and state grant activity.

Friedman and Warren said DHS has re-centered work around racial equity since 2022, created a racial equity implementation plan and worked with internal partners (REAP — Racial Equity Advancement Partners) to deliver mandatory training for more than 800 staff. DHS also described a department-level strategic plan under development that will focus on optimal health, housing stability, well-being and economic security.

Why it matters: DHS is the county’s largest human-services operation and houses Medicaid eligibility, a call center handling tens of thousands of calls annually, school-based health services and shelter and housing-assistance programs. Budget choices in DHS will affect food security, homelessness prevention and behavioral-health crisis response at a time of federal funding uncertainty, department leaders told the board.

Key program highlights and pressures - Call center and benefits: DHS reported nearly 90,000 calls at the central customer service center (plus another roughly 20,000 to emergency services). Medicaid is the largest program with close to 30,000 participants; SNAP serves roughly 10,000 Arlington residents. - Behavioral health and crisis services: DHS detailed multiple diversion and crisis programs. Its mobile outreach support team (MOST) — clinician and peer specialist in a mobile clinic — is expanding; county staff said they applied for a state Marcus Alert grant to keep federal-funded MOST services after the federal grant expires and to add a second team and a new van, with expanded hours planned. The crisis intervention center (CIC) has added 24/7 nursing coverage and is piloting transfer-of-custody procedures from police to certified special conservators of the peace; DHS reported six transfers that saved police time. - School mental health: Funded clinicians placed in seven schools are serving scores of youth; DHS said show rates are higher for in-school appointments than for office-based care. - Aging and disability: The Aging and Disability Resource Center reported a 60% increase in contacts since 2021 and a notable rise in older adults referred for shelter. DHS highlighted a new state-funded dementia-at-home program serving 172 clients and providing thousands of outreach contacts and professional trainings. - Arlington Addiction Recovery Initiative (ARI): DHS credited ARI harm-reduction work with a decline in fatal overdoses from 28 in 2021 to 10 in 2024 and 2 so far in 2025; ARI distributes naloxone, fentanyl test strips and conducts post-overdose outreach.

Budget specifics DHS leaders presented - Total DHS proposal: presenters gave multiple figures during the session; an early slide cited a $204,000,000 figure while later budget slides read aloud by staff showed $203,000,000 and a longer numeric figure during the manager’s overview. (See Clarifying details.) - Proposed additions: examples the department asked the board to consider included additional funding for AFAC food costs ($279,000), one-time support for Culpeper Garden assisted living ($350,000), Meals on Wheels ($105,000), a developmental-disability (DD) support-coordinator position (offset by Medicaid revenue), a childcare-licensing software implementation ($358,000) and resources tied to VQB-5 classroom observations. - Housing-related costs included a projected $2.4 million increase if current housing grants are maintained; DHS requested a six-month Housing Grants Navigator position to help recipients find units and flagged shelter cost increases tied to a recent multi-component RFP. - Proposed reductions and savings: DHS described program shifts and savings that include converting local transport recipients to Medicaid-funded transportation (about $300,000 saved), several position eliminations and other targeted reductions. The county manager’s proposal also includes modifying the county’s eviction-prevention eligibility rules (for example, restricting assistance in some cases to tenants with leases of six months or longer) as a potential $1.1 million saving for FY26.

Department operations and oversight DHS said it conducts broad performance measurement — 90% of programs have a performance measurement plan and 90% of those disaggregate data by race/ethnicity — and uses outcomes reporting to guide resource allocation. Friedman and Warren told the board they are analyzing administrative and financial tasks to reallocate resources toward front-line direct services.

What board members and commissioners said Commission representatives and advisory-board chairs urged continued investment in food, shelter and elder services and flagged potential federal funding cuts to Older Americans Act and Medicaid as key risks. The Community Services Board, Social Services Advisory Board and Community Services Board leaders voiced support for the manager’s proposed budget but urged monitoring and further funding if federal dollars decline.

What DHS will do next DHS said it will proceed with FY26 planning, discuss the department strategic plan with the board this year and continue working with partners on crisis-response pilots and housing programs. Several items described as grant-funded will require grants or state allocations before positions are hired or expanded.

Ending note: DHS officials repeatedly warned the board that federal funding changes and local inflationary pressures are likely to increase demand for county support; staff asked the board to consider both one-time and ongoing options in the manager’s proposed budget.