Alaska pauses behavioral health grant overhaul after provider pushback

The Alaska Division of Behavioral Health announced May 15 that it will continue the Comprehensive Behavioral Health Treatment and Recovery Outpatient and Residential programs for two more years instead of implementing a new grant structure for fiscal year 2027.

The division told behavioral health providers it decided to pause implementation of the new fiscal year 2027 grant programs after considering provider feedback about system readiness. The Comprehensive Behavioral Health Treatment and Recovery Outpatient and Residential programs will now continue through fiscal year 2028.

Providers who already submitted applications for fiscal year 2027 CBHTR Outpatient or CBHTR Residential grants will receive updated funding notices through the state's GEMS system along with requests for budget revisions to reflect the new award amounts. Those who hold fiscal year 2026 CBHTR grants but did not apply for the original fiscal year 2027 continuation grants will get another opportunity to submit proposals when the solicitation reopens in the next one to two weeks.

The pause affects Alaska's behavioral health treatment infrastructure at a time of ongoing substance use and mental health needs across the state. The CBHTR programs provide funding for outpatient and residential treatment services that communities from Bethel to Kodiak depend on for addiction recovery and mental health support.

Alaska Behavioral Health has previously relied on federal SAMHSA grant funding to expand mental health services for Alaskans. Federal behavioral health grant disruptions in January 2026 showed how quickly Alaska providers can be affected when SAMHSA funding changes. The Trump administration briefly cut off and then restored roughly $2 billion in mental health and addiction program grants nationwide.

The division said providers should watch for communications from their DBH program managers, notifications from GEMS, and an attached letter from Director Carson for more information about the fiscal year 2027 CBHTR programs. The notice included an attached PDF titled "FY27 Grant Changes Update May 14, 2026.pdf."

Providers with questions about the grant program changes can contact Kathryn Chapman at [email protected] with "FY27 Grant Update" in the subject line. The division said it will provide additional details about the reopened solicitation timeline in coming communications.

The two-year extension means the current CBHTR Outpatient and Residential program structures will remain in place through at least June 30, 2028. That gives providers and the division more time to prepare for any future changes to the grant framework.