New Federal Grants Fund Non-Police Mental Health Teams: Crisis Diversion Program Starts 2026

This new legislation, the Mental Health Emergency Responder Act, sets up a competitive grant program run by the Department of Health and Human Services (HHS) specifically to fund alternatives to police-led responses for mental health crises. Starting in fiscal year 2026, the goal is straightforward: help local communities—like your city, county, or even the fire department—develop or expand specialized teams that can respond to behavioral health emergencies without immediately sending an officer.

The Crisis Response Cavalry: Who Gets the Money?

If you’re wondering who qualifies for this federal cash injection, it’s mostly public entities and certified health organizations. Local governments, Tribal governments, regional EMS agencies, and fire departments are all eligible. Even non-profits can apply, but they have to team up with a local government or health authority first. The grant money is earmarked for crucial expenses: hiring and training mental health professionals and paramedics; buying the necessary equipment; and most importantly, integrating these new "co-response teams" directly into the 911 or 988 dispatch systems. A co-response team, by the way, is defined as having at least one behavioral health professional alongside an EMS provider, firefighter, or peace officer responding in real-time.

What This Means for Your Neighborhood

For most people, this bill translates into a potentially safer, more appropriate response when a neighbor, family member, or even you yourself are experiencing a mental health crisis. Think of the difference between a police cruiser showing up versus a van staffed by a trained crisis counselor and a paramedic. The aim is to divert these situations away from the criminal justice system and into the health system, where they belong. For instance, if your coworker is having a severe panic attack in the office parking lot, instead of police being the first on the scene, a specialized mobile crisis team could arrive, focusing on de-escalation and immediate care.

The Fine Print: State Laws Still Rule

Here’s a critical detail that keeps this bill grounded in reality: Section 2 explicitly states that this grant program does not force any state or local government to change its existing laws regarding emergency detention or involuntary custody. This is a big deal. It means that while the federal government is funding better response teams, the boundaries of what those teams can legally do—like transporting someone involuntarily to a facility—are still entirely set by your state’s current laws. If your state makes it difficult to get someone into treatment without a lengthy legal process, this new funding won't automatically fix that procedural bottleneck.

Accountability and the Waiting List

To ensure the money is doing what it’s supposed to, every grant recipient must send an annual report to HHS detailing how many crises they successfully diverted from the criminal justice system and what the outcomes were. This focus on metrics ensures accountability. Furthermore, when HHS decides who gets the grants, they will prioritize areas that either have no existing non-police crisis response program or have programs that are currently "pretty small or limited." This is designed to get the new response models into communities that need them the most, rather than just funding expansion in places that are already well-covered.