Laurel Selected for Montana’s New $26.5 Million Behavioral Health Facility

HELENA — The state has selected Laurel as the site for Montana’s new $26.5 million behavioral health facility, ending a months-long process to site the 32-bed facility designed to serve defendants with mental illness.

The Department of Public Health and Human Services announced the selection Thursday after the Office of Budget and Program Planning approved a plan from DPHHS and the Board of Investments.

“We are grateful to the City of Laurel and its leaders for their interest in partnering with the state on a new behavioral health facility,” DPHHS Director Charlie Brereton said. “Laurel provides access to a critical health care workforce and infrastructure necessary to ensure the facility’s success.”

The announcement resolves a proposal process that opened in October after a political dispute between state agencies temporarily stalled the project last summer.

From Rejection to Selection

The selection marks a reversal for Laurel. In August, Board of Investments Executive Director Dan Villa revealed that potential sites in the Billings and Laurel areas had been rejected due to “local feedback, infrastructure costs, local zoning regulations, impacts on targeted economic development districts.”

Villa called for a work stoppage at that time, citing “differing interpretations” between the executive and legislative branches about the board’s authority under House Bill 5.

Governor Greg Gianforte responded in September, encouraging the Board of Investments to resume work while emphasizing the importance of “public participation” and transparency.

Strategic Location

Brereton cited Laurel’s geographic position as a key factor in the decision.

“Laurel’s geographic location is ideally situated for improving transportation logistics for patients and their families, staff, and law enforcement across central and eastern Montana,” he said.

The facility aims to address a crisis that has left 128 people with mental illness waiting in county jails for court-ordered treatment. The state’s only facility equipped to handle these cases—a 54-bed unit in Galen—has consistently maintained a waitlist of over 70 people.

Growing Demand

Since 2022, court orders for forensic mental health services have surged 77%, with sentences for “guilty but mentally ill” defendants increasing 650%, according to DPHHS data.

The proposed 32-bed expansion would increase annual capacity to serve approximately 170 patients, according to DPHHS projections. The facility’s modular design will allow wings to be converted for civil mental health patients if demand shifts in the future.

The Legislature allocated the $26.5 million for the project through House Bill 5, which passed in 2025. The deadline for completing the transfer of funds to the Board of Investments is June 30, 2026.

Additional details about the project can be found at hb5.mt.gov.