Illinois FY27 Budget Advances Mental Health, Housing, and Recovery Priorities
Early yesterday, the Illinois General Assembly finalized the Fiscal Year 2027 budget and concluded its legislative session. The budget and other measures approved by the legislature now go to Governor Pritzker for consideration. While the budget is largely flat compared to last year, there is still much to celebrate across the behavioral health and supportive housing sectors.
“Despite difficult financial headwinds, we deeply appreciate the Governor and General Assembly’s measured approach and continued commitment to supporting vulnerable Illinoisans, including those living with mental health and substance use conditions,” said Mark Ishaug, President and CEO of Thresholds.
Thresholds is proud to partner with state Senator Mike Simmons to secure a $250,000 investment to renovate The Glenn Apartments, a single room occupancy (SRO) building in Uptown that we purchased last year to preserve affordable housing for our clients and neighbors.
In partnership with the Healthy Minds Healthy Lives coalition, we also helped pass HJR52, a resolution that raises awareness of concerning federal actions and encourages policymakers to recommit to evidence-based, community-backed, and person-centered treatment and housing models.
Although additional funding for Housing Is Recovery was not included in the budget, we are proud of the progress we made in raising awareness of this vital rental assistance program and laying the groundwork for future investment. Additionally, we supported the reinstatement of proposed cuts to Home Illinois – an important win for supportive housing amid concerns around the future of the federal Continuum of Care (CoC) program, the nation’s largest investment in homeless assistance and permanent supportive housing.
Several initiatives aimed at strengthening providers’ ability to be paid fairly and on time also passed, including the Community Partner Fair Contracting Act and various provisions in the Medicaid Omnibus.
We also commend the legislature for extending a one-time $400 payment to households that have lost partial or full Supplemental Nutrition Assistance Program (SNAP) benefits due to new federal requirements, helping individuals during the transition.
Budget negotiations were shaped by the reality that beginning January 1, 2027, Illinois will lose significant federal dollars due to major changes to Medicaid and SNAP outlined in HR1. In response, the General Assembly identified new revenue sources which will be critical to avoiding painful cuts and sustaining health and human services.