July 1, 2026
Alabama has reached a settlement in a federal lawsuit that accused it of segregating foster youth with mental health conditions in highly restrictive residential facilities.
The lawsuit, filed in 2021 by three nonprofit litigators, pertained to Alabama’s use of psychiatric residential treatment facilities, or PRTFs. These hospital-like settings are meant to treat youth and young adults with very serious mental illness, and are one of the few exceptions to the prohibition on using Medicaid to pay for institutionalization.