For Immediate Release
Contact: Leanne Ricchiuti, Association for Community Living, 518.222.8073
January 20, 2026
RELEASE
Association for Community Living Responds to
Governor Hochul’s Executive Budget Proposal
Proposed Housing Rate Increases Signal Progress,
Though Inflationary Gaps Remain for Providers
(Clifton Park, N.Y.) – The Association for Community Living (ACL) today acknowledged Governor Kathy Hochul’s Executive Budget proposal and expressed appreciation for her continued support of mental health and supportive housing programs, even as the State confronts a challenging fiscal year marked by expiring funding sources and overall spending constraints.
Among the proposals most impactful to ACL and its member agencies are a 1.7 percent Targeted Inflationary Increase (TII) for Mental Health and Substance Use Disorder Services, and $71 million in funding to increase rates for Office of Mental Health (OMH) and Office of Addiction Services and Supports (OASAS) supported housing programs.
ACL views this investment in supported housing rates as a positive and meaningful signal of the Governor’s recognition of the growing financial pressures facing mental health housing providers. The Association anticipates these funds will support long-needed updates to Scattered Site Supportive Housing rates, as well as stipend increases for community residence and supported program single-room occupancy, (CR-SRO and SP-SRO) programs.
“Governor Hochul has long been a champion for mental health and supportive housing, and we are grateful for her continued commitment during a difficult budget cycle,” said Emil Slane, Executive Director of the Association for Community Living. “The proposed $71 million for supported housing rates is an important step toward strengthening programs that serve some of New York’s most vulnerable residents.”
The Governor’s proposed 1.7 percent Targeted Inflationary Increase, which would apply broadly across provider budgets, represents a shift from prior years when increases were partially restricted to specific cost categories, such as staffing. ACL noted that while this proposal offers helpful flexibility, it falls short of the 2.7 percent increase tied to the Consumer Price Index that ACL and behavioral health advocates have urged to fully reflect current inflationary pressures.
“While a 1.7 percent increase is certainly preferable to no increase at all, it still represents a gap relative to inflation and the real-world costs of operating these essential programs,” Slane added. “Providers continue to face outdated funding models, significant workforce shortages, and an urgent need to offer wages that reflect the complexity and intensity of care being delivered every day.”
ACL emphasized that it remains hopeful that, as budget negotiations continue, the Governor and Legislature will be able to close the remaining gap and make additional adjustments in the final enacted budget.
“We look forward to continuing to work with policymakers ahead of our advocacy day on March 4, to ensure that New York’s mental health housing system is adequately resourced, sustainable, and able to meet the growing needs of individuals and communities across the state,” Emil said.
With more than 100 member agencies supporting nearly 50,000 individuals with serious mental illness, ACL remains committed to strengthening New York’s mental health housing system through advocacy, partnership, and community engagement.
For more information about ACL visit, https://aclnys.org/.
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