The NYS Office of Mental Health (OMH) announced FY 2026 budget investments significantly enhancing Assisted Outpatient Treatment (AOT), or Kendra’s Law. Key improvements include standardizing ‚Enhanced Voluntary Agreements‘ to offer less restrictive alternatives to court orders, supported by $16.5 million annually for counties to improve care coordination. OMH also launched a modernized „AOT Workspace“ database for real-time monitoring and better local government coordination. A statutory change allows earlier re-entry into AOT for individuals struggling with adherence, aiming to reduce worsening conditions. These measures seek to improve care quality, reduce hospitalizations, incarceration, and homelessness, promoting effective community-based mental health support.
Critical Investments from the FY 2026 Budget Standardize ‘Enhanced Voluntary Agreements’ with Recipients; Improving State Oversight
State Also Completes Massive Data Modernization Enhancing Local Coordination and Improving Outcome Monitoring
The New York State Office of Mental Health (OMH) today announced statutory changes and investments made in the FY 2026 State Budget that are being implemented to help improve the quality of care provided under Assisted Outpatient Treatment (AOT) — also known as Kendra’s Law — and enhance the state’s ability to monitor this care. Among the significant improvements made, OMH has standardized ‘Enhanced Voluntary Agreements’ to offer diversionary options for individuals being considered for AOT, introduced a dramatically improved system to monitor the program, and is investing $16.5 million in additional annual funding to help counties and providers bolster coordination among stakeholders.
“We have an obligation to help provide the best possible care for New Yorkers living with serious mental illness, especially those who have difficulty living safely within their community,” Commissioner Dr. Ann Sullivan said. “By expanding Enhanced Voluntary Agreements and providing counties with more resources to help coordinate care, we can ensure individuals with complex needs are supported through their path to recovery. With more funding and additional resources, we can make a positive difference in the lives of the individuals enrolled in these services and their families.”
The FY 2026 budget included an additional $16.5 million annually for counties to improve coordination and oversight of AOT. This increase is helping localities coordinate providers, emergency services, local hospitals, and other stakeholders who encounter individuals with complex needs, to reduce reliance on emergency care and increase use of voluntary services. The funding will also help localities update their policies and procedures and improve data reporting to OMH.
OMH also standardized Enhanced Voluntary Agreements, which enable individuals and counties to develop service plans to support recovery under the least restrictive circumstances. Based on guidelines established by OMH, Enhanced Voluntary Agreements provide a less restrictive alternative to court-ordered treatment and offer an opportunity for increased coordination with hospitals, service providers, courts, law enforcement, and emergency responders.
OMH also modernized its database used for monitoring AOT cases and treatment to improve coordination between the agency and local governments. Launched this winter, the new AOT Workspace is a seamless tracking system covering all counties, allowing for the integration of local data systems and for concerns to be addressed in real time.
This new system will also enable OMH to track outcomes for individuals served by AOT and Enhanced Voluntary Agreements and thereby gauge the effectiveness of both approaches. The FY 2026 budget also provided an additional $2 million annually for OMH to improve training capacity and oversight of AOT, providing additional support for counties and providers alike.
In addition, the FY 2026 budget amended statutory language that provides a pathway to bring individuals back into AOT earlier if they struggle to transition to voluntary services. Specifically, it allows for a new order within six months of an expiring order if the individual experiences a substantial increase in symptoms, emergency care, inpatient admission, or incarceration due to non-adherence to recommended treatment.
Prior to the change, individuals might need to experience multiple hospitalizations or encounters with law enforcement before being returned to the program — a series of events that can often occur over a longer period of time. The amended law means that these individuals can be brought back into treatment earlier, before their condition continues to significantly worsen, reducing risk of violence to self or others.
OMH is showcasing videos of individuals who have benefited directly from AOT as they recover from mental illness or have seen first-hand the effectiveness of the program. The first installment focuses on a Capital Region man who credits the order with helping him reconnect with his family and stabilize his life after a traumatic incident.
AOT helps reduce psychiatric hospitalization, incarceration, and homelessness among recipients in New York State, decreasing these rates by two-thirds or more among enrolled recipients. Individuals on AOT also had a 22 percent increase in engagement with services and a 38 percent reduction in harmful behaviors when comparing the six months before starting AOT to their latest six-month follow-up.
AOT was established under Kendra’s Law, which was adopted in 1999 in memory of Kendra Webdale, a young woman who died after being pushed in front of a subway train in New York City. The man who pushed her had a history of mental illness and hospitalizations but was not receiving treatment at that time.
The goal of court-ordered AOT is to ensure community-based assistance for individuals with mental illness and a history of hospitalizations or violence due to not engaging in mental health treatment. This program allows judges to order individuals to adhere to treatment and requires that the state and localities ensure that services outlined in a court-ordered treatment plan are provided.
NAMI New York State Government & Community Affairs Manager James Norton said, “Assisted Outpatient Treatment, established under Kendra’s Law, has helped thousands of New Yorkers with serious mental illness remain safely in their communities while reducing hospitalization, incarceration, and homelessness through coordinated, community-based care. The fiscal year 2026 investments ensure individuals receive equitable access to services and programming that aligns with their care needs. The Enhanced Voluntary Agreements offer less restrictive or step-down options for engagement without the formal AOT process. NAMI individuals and families in New York State welcome these improvements because they reinforce our shared commitment to providing timely, effective, and least restrictive appropriate setting mental health care that supports recovery while promoting the safety and well-being of individuals in communities.”
This has been republished from a NYS Office of Mental Health email bulletin sent on 7/14/2026.
For more information, contact Justin Mason at Justin.Mason@omh.ny.gov or 518-474-7056.
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