Minnesota is confronting a growing need for accessible mental health care, and part of this effort involves expanding residential and inpatient capacity across the state. Therefore, Minnesota’s behavioral health funding focuses on increasing availability where it is most needed.
In this article, we explore what’s driving these investments, how bed capacity may change, and what it could mean for people seeking care in Minnesota. We’ll also discuss how AMFM supports access to residential mental health care in Minnesota.
Founded in 2010, A Mission For Michael (AMFM) offers specialized mental health care across California, Minnesota, and Virginia. Our accredited facilities provide residential and outpatient programs, utilizing evidence-based therapies such as CBT, DBT, and EMDR.
Our dedicated team of licensed professionals ensures every client receives the best care possible, supported by accreditation from The Joint Commission. We are committed to safety and personalized treatment plans.
The Bigger Picture: A National Push to Expand Mental Health Infrastructure
The U.S. is currently experiencing a mental health crisis, with a recent study reporting that nearly one in ten adults say they’ve experienced a mental health crisis in the past year. Among young adults, ages 18 to 29, they reported the highest crisis prevalence at 15.1%.1
Unfortunately, along with increasing mental health concerns, there’s also a decline in the number of psychiatric beds in the country. Surveys showed that 43 states reported a shortage in inpatient psychiatric beds.2 While another study reported a 2% decline in the number of beds across the country between 2011 and 2023.3 This decline in mental health treatment beds makes it difficult for people to receive the care they need, when they need it.
Minnesota’s mental health funding expansion is part of a wider movement to expand and strengthen behavioral health systems. This shift reflects the growing understanding that problems accessing care often come from too few beds, limited options after hospitalization, and overwhelmed emergency departments.
Minnesota’s Bed Shortage: What’s Driving the Need for Expansion?
The rising rates of mental illness and broader mental health challenges drive the need for expansion of mental health treatment beds. In Minnesota, estimates suggest that well over one million people (one in five residents) experience symptoms of a mental health problem. Among these numbers, nearly 285,000 live with serious mental illness that significantly interferes with daily life.4
Moreover, these challenges don’t just affect adults. In a survey done on children’s mental health in 2022, nearly 44% of students in grades 8, 9, and 11 reported emotional distress.5
These mental health pressures translate into heavier reliance on services like residential and inpatient treatment. And yet, limited bed capacity means adults and young people alike can spend days in emergency departments waiting for placement rather than getting the care they need.
The shortage of beds has been particularly problematic for Minnesota, where people report waiting days or even weeks to get a bed at a mental health treatment facility. In fact, in the past decade, there has been a decrease in mental health treatment beds in Minnesota, resulting in only 3.5 inpatient beds per 100,000 Minnesota residents.6
Where the Funding Is Coming From
Understanding how Minnesota is funding mental health treatment beds means looking at a mix of state, federal, and grant funding support to expand both bed capacity and the broader treatment. Let’s take a look at these forms of funding in turn to better understand the efforts being made.
State Budget Allocations
Lawmakers included the Minnesota budget for behavioral health services expansion in a bill passed to improve the state’s infrastructure. This bill, called the ‘Capital Investment Bonding Bill,’ included over $700 million in funding for infrastructure projects. Within that bill, legislatures secured $55 million for the construction of a new 50-bed mental health treatment facility on the campus of Anoka Metro Regional Treatment Center.7
The Bonding Bill also includes $7.5 million for the Minnesota Department of Human Services for needed upgrades and repairs to facilities statewide. All of which aim to support the health and well-being of Minnesotans.
Federal Support and Medicaid
The recent passing of federal policy has included changes and cuts to Medicaid, which had previously been a key part of how states received funding for mental health care. The law made modifications that reduced federal spending and limited how states use their share of Medicaid services.
One of those recent changes included that Medicaid generally cannot use federal funds to pay for care in a mental health institution if the facility has more than 16 beds. This is also the case if the facility mainly treats people with mental illness. This restriction is known as the IMD exclusion.8
To make up for these cuts, lawmakers in Minnesota have introduced the Restoring Inpatient Mental Health Access Act of 2025. This removes the IMD exclusion, meaning federal Medicaid dollars could help cover behavioral health investments in Minnesota.9
All this is to say that ongoing planning around federal policy and state decisions will play a continuing role in Medicaid funding for Minnesota’s mental health beds.
State Grants for Behavioral Health Funding
There are some state grants for mental health facilities in Minnesota that programs can apply for to get funding. One of these grants is through the Medica Foundation. This offers awards up to $200,000 over two years for programs aimed at improving outcomes for people experiencing, or at risk of, serious mental health conditions.10
How These Investments Could Change Access to Care
These investments in Minnesota’s treatment bed capacity for mental health can provide access to care by increasing availability. One of the biggest changes is shorter wait times for placement in residential or inpatient programs. This expansion can help ease the burden on emergency departments and treatment program waitlists. Having these added treatment sites can also support faster hospital discharges, allowing people to transition into residential settings sooner rather than taking up space in a medical bed.
Additionally, these changes strengthen the continuity from crisis to residential care, reducing gaps between emergency intervention, stabilization, and longer-term treatment. With more predictable placement pathways, providers can coordinate next steps earlier.
Addressing the Challenges of Minnesota’s Mental Health Treatment Bed Increase in 2025
Adding more physical beds is a great start to expanding access to mental health care. But it is not the only piece of the puzzle that needs improvement. The state must also invest in the professionals who make treatment possible.
One way Minnesota is doing this is by expanding loan-forgiveness and scholarship programs for people entering behavioral health careers, particularly those willing to work in underserved or rural areas.11 These incentives are paired with licensing pipeline reforms designed to shorten the time it takes qualified professionals to enter the workforce while still maintaining rigorous clinical standards.
What People Seeking Treatment in Minnesota Should Know
Minnesota’s funding initiatives can influence how quickly placements become available and what levels of treatment are offered. As Minnesota behavioral health funding grows and the challenges get smoothed out, you may encounter shorter referral timelines, new residential openings, and more coordinated transitions from crisis services into longer-term programs.
It’s important to know that availability still depends on clinical need, insurance coverage, and how quickly referrals move between hospitals and residential providers. Even as conversations continue about expanding mental health treatment capacity in Minnesota, new beds require licensing, staffing, and regional integration before they can open.
A vital part of this process is to continue asking about referral options, participating in care planning, and preparing for the next steps after stabilization. As Minnesota’s treatment bed capacity for mental health continues to evolve, informed advocacy and partnership with experienced providers can make navigating the system feel more manageable.
How AMFM Healthcare Supports Access to Residential Mental Health Care in Minnesota
As Minnesota continues investing in treatment capacity, access ultimately depends on providers who can translate funding into consistent, high-quality care. At AMFM Healthcare, our focus remains on helping you move from crisis toward stability through personalized residential treatment. We work closely with hospitals, referral partners, and care coordinators to support timely admissions and continuity across levels of care.
In Minnesota, we have two locations in Stillwater that offer 24/7 access to healthcare on-site. Our programs include a combination of evidence-based therapies and holistic approaches so you get whole-person support in a structured environment.
If you or someone you love is navigating Minnesota’s evolving mental health system, let us help. Reaching out can be the first step toward clarity, connection, and long-term healing. Contact AMFM Healthcare today to learn how our residential programs can help you take the next step forward.
FAQs About Behavioral Health Funding in Minnesota
If you or a loved one could benefit from mental health treatment in Minnesota, you may have some ongoing questions about behavioral health funding in the state. We’ve provided the following answers to FAQs to help make any changes as understandable as possible.
Why Minnesota Is Investing in More Mental Health Treatment Beds?
Minnesota is investing in more mental health treatment beds because there is continued demand for higher levels of care. Too many people seeking treatment wait days or weeks in a hospital for an open mental health treatment bed. Or they are left to return home without continued care. The behavioral health investment in Minnesota works to stabilize the system and improve continuity from crisis to residential care.
When Will Minnesota Expand Mental Health Treatment Capacity?
Many of the bills funding these projects just passed, so the expansion will take time to complete. Some changes can happen fairly quickly, but construction projects, like Anoka’s 50-bed expansion, are expected to progress through 2027. So changes might take time.
Does Minnesota Receive Federal Funding for Mental Health?
Yes, Minnesota receives federal funding for mental health largely through Medicaid. However, recent policy changes may make this more difficult in the future. However, lawmakers are attempting to pass legislation that will open up access to Medicaid funds for inpatient treatment centers.
How Many Mental Health Treatment Beds Does Minnesota Have?
Recent reports show there are 192 state hospital beds. Anoka Metro Regional has 96 staffed beds, and Community Behavioral Health has 96 staffed beds as well. Then the state also runs a Forensic Mental Health Program that has 359 beds, but is for forensic patients.12 This count does not include private treatment centers in Minnesota, only state-run facilities.
Can I Get Treatment at AMFM Healthcare?
Yes, we offer residential mental health treatment in Minnesota for people experiencing a variety of mental health concerns. If you’re looking for structured, supportive care, contact our team. We can assess whether our program is a good fit and guide you through the next steps and answer any admission questions as you explore your options.
How Many Beds Does AMFM Have in Minnesota?
Our residential mental health facilities in Minnesota offer 8-bed, double-occupancy rooms with limited single room options. We have two programs in Stillwater, MN. One is our male and male-identifying program at Arcola Trail. The second is our female and female-identifying program at Dellwood Rd. Each location has the same bed capacity. This means our Stillwater locations collectively offer over a dozen residential beds across specific programming, ensuring you get individualized attention and support.
References
- Anderson, A., Eisenberg, M. D., Kennedy-Hendricks, A., Castrucci, B. C., Galea, S., & Ettman, C. K. (2025). Mental health crises and help-seeking among U.S. adults in 2024–2025. Health Affairs Scholar, 3(9). https://doi.org/10.1093/haschl/qxaf166
- National Rural Institute. (2025). State mental health agency use of state psychiatric hospitals: July 2025 final report. https://nri-inc.org/media/4bofjpqy/smha-use-of-state-psychiatric-hospitals-july-2025-final.pdf
- Shen, K., Olfson, M., & Sacarny, A. (2025). National Trends in Inpatient Psychiatric Bed Supply, 2011 to 2023. JAMA Psychiatry, 82(11), 1152. https://doi.org/10.1001/jamapsychiatry.2025.2230
- Archbold, T. (2021). Facing a psychiatric bed crisis: when demand exceeds supply. The Independent Medical Business Journal, 34(12). https://www.mnphy.com/MP_0321_S1_Todd_Archbold
- One Minnesota Plan. (2022). Children’s Mental Health. https://mn.gov/mmb/one-mn-plan/measurable-goals/childrens-mental-health.jsp
- Engler, J. (2022). Boarding Mental Health Patients in Minnesota EmergencyBoarding Mental Health Patients in Minnesota Emergency Departments–The Unintended Consequence of an InadequateDepartments–The Unintended Consequence of an Inadequate Mental Health SystemMental Health System. Mitchell Hamline Law Review:, 48(4), 3. https://open.mitchellhamline.edu/cgi/viewcontent.cgi?article=1296&context=mhlr
- Minnesota House of Representatives. (2025, June 12). Rep. Luke Frederick secures funding for new mental health treatment facility. https://www.house.mn.gov/members/profile/news/15542/40734
- Library of Congress. (2025, February 25). Medicaid’s Institution for Mental Diseases (IMD) exclusion. Congress.gov. https://www.congress.gov/crs-product/IF10222
- Finstad, B. (2025, November 7). Finstad introduces the Restoring Inpatient Mental Health Access Act of 2025 [Press release]. United States House of Representatives. https://finstad.house.gov/2025/11/finstad-introduces-the-restoring-inpatient-mental-health-access-act-of-2025
- Medica Foundation. (n.d.). Behavioral health grants. https://www.medicafoundation.org/apply-for-a-grant/behavioral-health
- Minnesota Department of Health. (2026, January 27). Minnesota Rural Mental Health Professional Loan Forgiveness guidelines. https://www.health.state.mn.us/facilities/ruralhealth/funding/loans/ruralmental.html
- Treatment Advocacy Center. (2023). Minnesota. https://www.tac.org/wp-content/uploads/2023/10/Minnesotabedsinformation.pdf
