Governor Gianforte, DPHHS Invest $1.2 Million to Expand Psychiatric Residential Care for Montana Youth

Grants awarded to Shodair Children's Hospital and Yellowstone Boys and Girls Ranch to increase in-state bed capacity

Governor's Office

HELENA, Mont. - Governor Greg Gianforte and Department of Public Health and Human Services (DPHHS) Director Charlie Brereton today announced a $1.2 million investment to further expand psychiatric residential bed capacity for Montana youth with serious emotional disturbances.

"This investment builds on our momentum to serve more Montana children here at home and helps bridge a critical gap in our continuum of care," Gov. Gianforte said. "By adding more beds, we are ensuring more high-needs youth can heal closer to home, surrounded by their families and communities."

The two-year grants, totaling $618,500 each, were awarded to Shodair Children's Hospital and Yellowstone Boys and Girls Ranch - the state's only providers offering this intensive level of care.

The funding is a key component of the $123 million behavioral health package approved by the 2025 Legislature and signed into law by Governor Gianforte. The package also fully funded 10 recommendations from the Behavioral Health System for Future Generations (BHSFG) Commission.

In 2025, there was a 41 percent increase in the number of children receiving treatment in-state by a Psychiatric Residential Treatment Facility (PRTF). DPHHS attributes this success to the BHSFG Residential Bed Capacity Near-Term Initiative, which expanded PRTF capacity by 52 new or reopened beds.

By expanding in-state access through this grant, this effort ensures that more Montana youth with serious emotional disturbances receive high-level care without having to cross state lines to receive treatment. In 2025, 194 Montana youth sought treatment in out-of-state PRTFs.

"This investment is about building a sustainable, high-quality system of care that prioritizes Montana's children," Dir. Brereton said. "By equipping our frontline providers to better serve children with the most acute needs, we are adding in-state capacity, reducing reliance on out-of-state placements, and strengthening the foundation of our behavioral health network."

Grant funds may be utilized for construction, facility upgrades, staff recruitment and training, and family engagement initiatives.

This expansion complements the $300 million generational investment established by House Bill 872. Since Gov. Gianforte signed the bill in May 2023, the state has reformed Montana's behavioral health and developmental disabilities service systems to ensure long-term sustainability and care.

In addition to the 10 funded BHSFG recommendations, the Commission and Governor Gianforte also approved 11 Near-Term Initiatives.

More information about the Commission and its work may be found on the BHSFG website here .

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