Governor Hochul Announces $43 Million to Expand Inpatient and Emergency Psychiatric Services for New Yorkers In Crisis

Governor Kathy Hochul today announced the availability of funding to expand comprehensive psychiatric emergency programs and to increase inpatient capacity statewide. The state Office of Mental Health has made available $23 million to develop new or expand existing comprehensive psychiatric emergency programs - also known as CPEPs - in addition to $20 million to help community-based and psychiatric hospitals increase bed capacity.

"Part of our efforts to strengthen our mental health care system is ensuring any New Yorker in crisis can access treatment services whenever and wherever they need them," Governor Hochul said. "By expanding psychiatric emergency programs and building more inpatient capacity, we can ensure that anyone who experiences a mental health crisis can get the timely, comprehensive care they can rely on to begin their journey toward recovery."

OMH is making $20 million in capital funding and $3 million in start-up funding available for new CPEPs to serve children or for existing adult programs to add capacity for youth. Existing programs can also apply for funding to increase the number of extended observation beds, improve unit safety, or expand the footprint of treatment, waiting or group activity areas.

Comprehensive psychiatric emergency programs serve as an entry for individuals in need of crisis treatment in a safe and comfortable environment and can admit patients for up to 72 hours if they need extended observation. These programs provide a full range of psychiatric services to New Yorkers experiencing a behavioral health crisis, including individuals with mental health disorders as well as co-occurring substance use disorders, intellectual and developmental disabilities, and medical conditions.

In a separate funding opportunity, OMH made $20 million in capital available to expand inpatient capacity. This is comprised of up to $7 million for two facilities it licenses to each undertake capital projects to establish inpatient mental health units supporting individuals dually diagnosed with intellectual or developmental disabilities. This includes funding for one unit to serve adults in New York City, and funding for one unit to serve children in areas outside of New York City, excluding the five-county Central New York region, which is now served by a new 29-bed unit for children dually diagnosed with serious emotional disorders and intellectual or developmental disabilities and opened by SUNY Upstate Medical University in Syracuse in 2024.

Additionally, up to $5 million will be available for two capital projects statewide to expand or renovate inpatient units serving adults or adolescents. Pending available funding after the inpatient expansion awards, existing facilities licensed by OMH can apply for capital funding to add up to four new beds to an existing unit, renovate a unit to incorporate outdoor space, or increase the footprint of non-bedroom space.

New York State Office of Mental Health Commissioner Dr. Ann Sullivan said, "Adding new inpatient beds and establishing more comprehensive psychiatric emergency programs will help provide timely care to those New Yorkers who are experiencing a mental health emergency. This capacity plays an integral role in bringing stability to people in crisis and connecting them with other recovery-oriented services in our continuum of care. This funding reflects Governor Hochul's ongoing commitment to expanding inpatient capacity and strengthening our mental health care system."

New York State now funds 31 CPEPs statewide, following a $39 million investment to establish nine new programs in 2024. State-funded CPEPs received more than 110,000 visits between October 2024 and September 2025, admitting nearly 14,800 patients to extended observation beds during that time.

New York State has also expanded inpatient capacity under Governor Hochul's leadership, having now added 1,000 psychiatric beds, including 642 beds at article 28 hospitals and 358 beds at state-operated psych centers. The Office of Mental Health is also developing 75 beds at Creedmoor Psychiatric Center in Queens to double the size of the successful Transition to Home program, which is helping to successfully treat and stabilize chronically homeless individuals living with mental illness in New York City. 

Governor Hochul also secured $160 million in the FY 2026 Enacted Budget to construct 100 new forensic inpatient psychiatric beds to help restore justice-involved individuals to competency to stand trial in New York City. An additional $28.3 million was allocated to increase staff-to-patient ratios at the agency's forensic hospitals, which will be completed over the next two years. 

Contact the Governor's Press Office