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Gov. Reynolds steers $50M CARES Funds toward Iowa’s Mental Health System

Iowa Governor Kim Reynolds

DES MOINES – Today Gov. Kim Reynolds announced that $50,000,000 in federal funds allocated through the CARES Act will be invested in Iowa’s mental health care system. Watch Governor Reynolds’ announcement on Facebook here.

“We are making meaningful investments into Iowa’s mental health services to help vulnerable Iowans and their families,” said Gov. Reynolds. “Today’s investment is not only about adapting to the challenges we face today, but sustaining a compassionate and coordinated system for the future. I also want to commend Flora Schmidt with the Iowa Behavioral Health Association and Andrew Allen, CEO of Youth and Shelter Services for making a difference in the lives of so many Iowans.”

$50,000,000 in CARES Act will be allocated through the providers:

Mental Health Providers – $10M

  • Will go to Medicaid providers of non-hospital based inpatient and outpatient services to cover increased costs associated with pandemic.

Substance Use Disorder Providers – $10M

  • Will go to Medicaid providers of non-hospital based residential and outpatient services to cover increased costs associated with pandemic.

Mental Health and Disability Services Regions – $30M

  • State will distribute an equal per capita amount to each MHDS region to support ongoing adult and children’s mental health services, including to cover increased service need due to the stressors and isolation associated with pandemic.
  • With $98-99M of property tax levy dollars going to MHDS regional services, the additional $30M investment brings the overall system funding to nearly $130M.

Gov. Reynolds was joined at her press conference by Flora A. Schmidt, the Executive Director for the Iowa Behavioral Health Association, Andrew Allen, President & CEO of Youth and Shelter Services, Lt. Gov. Adam Gregg, and DHS Director Kelly Garcia.

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