July 1, 2025

On June 30th, New Jersey’s Senate and General Assembly voted on a $58.8 billion FY2026 budget bill, a record high and $728 million more than Governor Phil Murphy’s proposed $58.05 billion budget. 

Recognizing growth in multiple programs in the Department of Children and Families, increases to the ARRIVE (Alternative Responses to Reduce Instances of Violence & Escalation) program, new state funding for Certified Community Behavioral Health Clinic demonstration programs, funding for harm reduction services and other instances of new or higher funding, NJAMHAA President and CEO Debra L. Wentz, Ph.D. stated, “While we are extremely grateful for the funding that was maintained, new funding for some services and nominal increases in other areas, it unfortunately is not enough to support a stable workforce nor sustainability for many programs.”

Dr. Wentz added, “At a time when the prevalence of mental illness and substance use disorders across all age groups and other demographics continues to rise, providers of these services are being reimbursed at levels that do not cover the actual costs of care. Program capacities are shrinking and many are evaluating if they must close programs as the losses to operate them have grown. It is very disappointing that mental health and substance use treatment and supports were not made a higher priority.”

Here is NJAMHAA’s summary of the FY2026 Budget bill including both changes the Legislature has made to the Governor’s proposed FY2026 budget that are relevant to NJAMHAA members and the many significant items that were included in the Governor’s original proposal.

NJAMHAA will continue to advocate for adequate rates and contracts for all of the critical behavioral health services its members provide to New Jersey’s adults, children, youth and families.