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NC announces $17 million in federal funds to improve rural mental health services. October 22, 2026 Gov. Josh Stein and the North Carolina Department of Health and Human Services (NCDHHS) announced funding earlier this month for "investments to improve mental health services" through the state's Rural Health Transformation Program, totaling more than $17 million, according to a press release. This funding is a part of the $213 million awarded for the 2026-27 fiscal year to NCDHHS by the U.S. Centers for Medicare & Medicaid Services in order to carry out the first year of Rural Health Transformation Program. According to NCDHHS, North Carolina has the second-largest rural population in the U.S., and the program is designed to improve the health outcomes of over 3.5 million North Carolinians who live in rural communities, including through the expansion of behavioral healthcare and substance use services. "Every North Carolinian deserves the opportunity to live a healthy and fulfilling life," Stein said in the release. "Nearly 1.5 million North Carolinians struggle with mental health issues, and too many people in rural areas cannot access the care they need. These investments will connect more families to high-quality care in their communities." NCDHHS Secretary Dev Sangvai emphasized the importance of the department's mission of "addressing whole-person well-being," acknowledging that mental health is an inseparable part of health. "There is no health without mental health," he said in the release. "Our goal is to build a comprehensive system that delivers high-quality services to residents no matter where they live. These initiatives expand access to care and support whole-person well-being, directly advancing the NCDHHS mission to provide essential services that improve the health, safety, and well-being of all North Carolinians while developing a sustainable healthcare workforce for the future." According to the release, the $17 million will fund the following initiatives: * $4 million for Certified Community Behavioral Health Clinics * $3 million to expand Medications for Opioid Use Disorder Access * $4 million to expand Mobile Outreach, Response, Engagement, and Stabilization teams * $3 million for Coordinated Specialty Care for First-Episode Psychosis response * $2.9 million to establish regional Rural Crisis Partnerships * $800,000 to expand NC MATTERS You can read more about each of these initiatives here. More on the Rural Health Transformation Program. by Chantal Brown | September 15, 2026 by Sophia Luna | January 22, 2026 Programs for children and youth. The investment in rural mental health programs will help many children - but the $3 million for Coordinated Specialty Care (CSC) for First-Episode Psychosis response is a service specifically designed for young people. According to the press release, "CSC is a team-based, early intervention for young people experiencing early psychosis." A 2022 report to the legislature from NCDHHS on First Psychotic Symptom Treatment said, "Untreated psychosis increases a person's risk for suicide, involuntary emergency care, and poor clinical outcomes." However, research has found that early intervention through a CSC program "can alter the illness trajectory and enable individuals experiencing First-Episode Psychosis to live in community settings and participate fully in family and community life." While a young person's first episode of psychosis is often jarring for many families, the treatment the program provides can alleviate some of the stress, according to Kelly Crosbie, NCDHHS assistant secretary for mental health. During the NC Chamber's Business Summit on Mental Health in May, she said the results of the program so far are "tremendous." "These young people are getting the treatment they need, the right medication after their first hospitalization that scared the Jesus out of all of you," said Crosbie. "Families are getting the support they need." According to the October press release, the Rural Health Transformation Program will implement a "rural adaptation" of CSC that will that will include a "Hub & Spoke Model that incorporates tele-psychiatry with community-based teams to reduce geographic barriers." The implementation of CSC in rural communities is projected to help reduce the "number of children staying overnight in emergency departments by 8% to 10% each year through 2031," the release says.

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