Thresholds Calls for Sustainable Investment in Behavioral Health and Housing Following Governor Pritzker’s Budget Address
SPRINGFIELD – Illinois stands to lose billions in federal funds for Medicaid, SNAP, and other essential safety-net programs as implementation of HR1, the federal reconciliation package, takes shape. These cuts pose a serious, long-term threat to behavioral health services for both rural and urban communities alike, deepening Illinois’ existing structural deficit. The stakes for families, workers, and providers could not be higher.
As a community mental health provider, we see every day how critical it is that Illinois continues to invest robustly in the health and human services that keep people safe, stable, and connected. We appreciate the difficult position thrust upon state governments and were encouraged that Governor Pritzker focused on love, courage, and compassion in yesterday’s address. We are grateful for investments in behavioral health that his Administration has continued to prioritize throughout his tenure.
We were also pleased that the Governor prioritized housing. Housing is foundational to recovery and a critical piece of Thresholds’ approach. Sadly, it remains out of reach for many, including those struggling with mental illnesses and substance use conditions. Unfortunately, it appears that funding for some supported housing programs would be reduced in the proposed budget. This runs counter to what we know is needed.
The reality is that the cost of delivering high‑quality mental health and substance use treatment rises each year—driven by workforce shortages, increasing health insurance costs, and inflation—yet reimbursement rates under Medicaid and state grants have not kept pace. The gap between what it costs to provide quality care and what providers are reimbursed continues to widen, undermining the sustainability of the very services our communities depend on.
We urge the General Assembly to allocate $10 million for Housing Is Recovery to not only sustain shelter for those currently housed through the program, but to grow capacity to better meet the needs across the state. We look forward to continuing to partner with the Administration and the General Assembly to make this possible.
Thresholds championed the passage of Public Act 102-0066 in 2021, creating the Housing Is Recovery program. Under the leadership of the Division of Behavioral Health and Recovery, it has since enabled 162 Illinoisans to gain housing stability. By reducing hospitalization, institutionalization, and incarceration, initiatives like Housing Is Recovery and other supportive housing programs generate a significant return on investment for taxpayers while improving the quality of life for program participants. Illinois cannot navigate the challenges ahead by cuts alone.
Instead, Governor Pritzker and members of the Illinois General Assembly must work to adopt meaningful, progressive revenue solutions that allow our state to stabilize its budget and invest in essential services—including mental health care, substance use treatment, and supportive housing. With the right approach, Illinois can ensure that community-based providers are equipped to meet rising demand, build a strong behavioral health workforce, and deliver care that keeps individuals and families healthy and housed.
A budget is a statement of values. During this period of fiscal uncertainty, we call on state leaders to continue to choose investments that protect our most vulnerable neighbors and strengthen the foundation of our communities. Our state’s health and future depend on it.
For media inquiries, contact Chief of Communications, Emily Moen