Spring 2026 Update from BHAM

If it feels like a lot has been happening lately… you’re right! Doesn’t it feel like more has happened in the past six months than in the previous five years?

With significant federal investments and policy activity underway, states have been doing the heavy lifting to translate those efforts into implementation at the local level. That work is now coming into clearer focus, and as the state’s plans take shape, we’re able to more actively engage and begin preparing for what’s ahead.

Across nearly every major state initiative, we’re seeing consistent themes emerge: investment in the system, access to services, and workforce. These priorities continue to guide BHAM’s work as monitor and track developments, engage with local and state partners, and ensure that behavioral health is represented in how these efforts move forward.

Here’s what we’ve been up to:

Our 2027 Legislative Session Platform is Taking Shape

With so much happening at both the federal and state levels, we’re starting with a strong, broad foundation that will be further refined as we get closer to session. Our work is grounded in these three core pillars:

• Access – ensuring services are available when and where they’re needed
• Investment – supporting sustainable funding that reflects the cost of care
• Workforce – strengthening the people and systems that make care possible

Our focus is on whether behavioral health services are available when people need them, whether funding and reimbursement support sustainable service delivery, and whether workforce conditions allow services to be provided in practice. We emphasize least restrictive, community-based care; rural and frontier realities; and system-level coordination and implementation.

State Budget Alert: FY2027 Provider Rates at Risk

DPHHS has identified a budget shortfall for FY2027, and mitigation planning is happening now, which includes considering not implementing the FY2027 3% Provider Rate Adjustments as planned. For behavioral health providers and the communities they serve, this raises significant concerns. Provider rates are a key factor in sustaining services, supporting workforce recruitment and retention, and maintaining access to care across Montana.

Why This Matters – Now:

Montana has made major investments in behavioral health system improvements through initiatives such as the Rural Health Transformation Program (RHTP) and the Behavioral Health System for Future Generations (BHSFG). Those efforts are designed to expand community services, strengthen crisis response, and improve long-term outcomes. However, system transformation depends on a stable provider network with the financial capacity to recruit staff, maintain programs, and meet growing demand.

If the FY27 3% provider rate increase is not implemented as planned, it could create tension between the state’s goals and the operational realities providers face each day.

How you can help:

We encourage BHAM members, partners, and community supporters to help decision-makers understand the importance of maintaining a strong, accessible behavioral health system.

• Reach out to your local legislators and share why behavioral health services matter in your community. And/or
• Participate in public comment opportunities at upcoming Interim Committee meetings.
  • Children, Family, Health and Human Services: May 5, 2026
  • Legislative Finance Committee: May 13, 2026

General Talking Points for Outreach:

• Behavioral health services are essential to health families, safe communities, and a strong workforce.
• Sustainable provider reimbursement helps preserve access to care across urban, rural, and frontier communities.
• Workforce shortages remain a major challenge, and adequate reimbursement supports recruitment and retention.
• Community-based services help people get care earlier and reduce reliance on higher-cost crisis settings, such as the Emergency Department and local jails.
• Prior investments in system reform should be protected by ensuring providers can continue delivering services.
• Thoughtful budget decisions now will have long-term impacts on Montana’s behavioral health system.

Relevant article: https://dailymontanan.com/2026/03/18/dphhs-reports-34-4-million-shortfall-in-interim-budget-committee/  

Rural Health Transformation Program (RHTP)

Governor Gianforte’s Licensing Reform Taskforce

BHAM was also appointed to the Governor’s Licensing Reform Taskforce, and we’re grateful for the opportunity to represent the behavioral health sector. The Task Force is focused on reviewing Title 37 (Occupational and Professional Licensure), and taking a close look at how licensing requirements can protect the public while reducing unnecessary barriers to entering the workforce. This includes identifying where processes may be duplicative, outdated, or creating delays that impact hiring and service delivery. The Task Force is expected to submit a report to Governor Gianforte in September, with recommendations to help inform potential changes to licensing policies, processes, and possible legislative priorities.

Taskforce and Subcommittee meetings are public, and there are opportunities for public comment and input all along the way. Click here for upcoming and previous meeting materials.

Federal Changes Under HR1/ The “One Big Beautiful Bill”

Please reach out to me if there is anything you need. When we work together, we can solve all the problems out there!

Stay safe. Stay healthy.

Sierra
[email protected]