Texas commits $239 million to improving mental health access, funding new and expanded psychiatric facilities to serve patients in underserved rural areas

Austin, Texas – Texas Governor Greg Abbott has announced a major investment in rural mental health care, with the state allocating $239 million in construction grants to improve access to inpatient psychiatric services. The funding, administered by the Texas Health and Human Services Commission (HHSC), is set to help rural communities treat patients with severe mental health conditions closer to home, eliminating the need for long-distance travel to major cities.

Abbott emphasized the state’s commitment to expanding mental health resources for all Texans, particularly those in underserved areas.

“The State of Texas continues working to expand access to critical mental health resources to ensure Texans get the support they need, no matter where they live,” Abbott stated.

He highlighted that the investment will allow local governments and medical facilities to better address acute psychiatric needs within their own communities.

The funding will be used to build, expand, and renovate mental health facilities in four different regions of the state, creating up to 332 new inpatient beds. The grants will be distributed as follows:

• $85 million for up to 100 beds at DHR Health in Edinburg.
• $64 million for repairs, renovations, and construction at Baptist Hospitals of Southeast Texas in Beaumont, adding 72 beds.
• $50 million to expand the Montgomery County Mental Health Treatment Facility in Conroe by up to 100 beds.
• $40 million for a new facility in Victoria County, expected to include 60 beds.

Scott Schalchlin, Deputy Executive Commissioner for the HHSC Health and Specialty Care System, noted the importance of local collaboration in expanding behavioral health services.

“HHSC is committed to working with the Legislature to increase options for accessing quality behavioral health resources,” he said.

He added that the program is designed to empower hospitals and local governments to respond effectively to the specific mental health needs of their residents.

A significant portion of these new inpatient beds will be reserved for forensic patients, individuals who have been ordered to a state hospital through the criminal justice system for competency restoration. This process helps individuals regain the ability to participate in their legal proceedings, ensuring fair and effective judicial outcomes.

The initiative is part of a broader legislative effort approved by Abbott and the 88th Texas Legislature to expand and modernize mental health infrastructure across the state. The grant contracts are currently in various phases of planning, design, and development, with state officials working closely with medical providers to bring these projects to completion.

With this funding, Texas is taking a major step forward in addressing mental health care disparities in rural areas. By expanding local treatment options, the state aims to provide faster, more effective care to those in crisis, reducing the burden on overcrowded urban facilities while keeping patients closer to their families and support systems.

Learn about other funding opportunities on the HHSC grants page.