Committee advances $10M plan to expand in‑state placements for youth in custody

House Health & Human Services Committee · January 26, 2026

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Summary

HB76, requesting $10 million to build out alternatives to congregate care (residential treatment, step‑down services, mobile crisis teams and treatment foster care), was given a due pass after experts described children sleeping in CYFD offices and officials outlined work to build placements that can qualify for federal Medicaid reimbursement.

Representative Ferrari presented HB76 asking for a $10 million appropriation to contract with providers to create in-state alternatives for youth in state custody who need 24/7 care. Experts and provider witnesses described long-standing gaps: closures of group homes and residential-treatment capacity that have left children without appropriate placements and, in some cases, housed in CYFD offices. Kevin Berry of PEAK Treatment Foster Care described a system-wide crisis and the lack of mobile response teams or step-down facilities.

CYFD leadership and health-plan contractors testified about urgency and the governor's executive order to end 'office days'; Brenda Donald, CYFD COO, said 27 children were currently out of state in residential treatment and that teams are working to evaluate each child for appropriate placement. Witnesses asked the Legislature to accelerate capacity-building; sponsors noted that 75% of some costs may be reimbursable by Medicaid once programs meet federal QRTP and certification requirements.

Committee members raised timing, definitions (youth in state custody, congregate care) and whether funds might duplicate other bills or existing contracts. The bill was moved and given a due pass; members requested clearer definitions and coordination with Senate Bill 3 behavioral-health framework and appropriations.