Governor Greg Abbott today announced that the Texas Health and Human Services Commission (HHSC) is beginning construction of a new Terrell State Hospital building that will provide inpatient psychiatric care to North Texans. HHSC held a groundbreaking ceremony this morning to celebrate the start of construction of the 415,000-square-foot replacement hospital. Governor Abbott and the Texas Legislature approved $573 million in funding for the hospital building, which is expected to be completed in late 2027. “This groundbreaking ceremony for the new state hospital in Terrell is a step forward in Texas’ ongoing efforts to expand and modernize state facilities that offer behavioral health treatment to Texans,” said Governor Abbott. “Since 2017, Texas has provided more than $2.5 billion to build, renovate, and improve our state hospitals to ensure that Texans in every corner of our state have access to the quality inpatient psychiatric care they deserve. I thank the Texas Health and Human Services Commission for their work on this new hospital as one of seven projects to provide better behavioral health services to those in need.” “Texans are better served when they have access to health care closer to home, and that is why state leaders and HHSC have invested in facilities like the Terrell State Hospital,” said Texas Health and Human Services Executive Commissioner Cecile Erwin Young. “When completed, this hospital will offer hope, healing, and recovery for some of the most vulnerable people in North Texas.” The new hospital will have 275 beds: 175 non-maximum-security, 50 maximum-security, and 50 adolescent. Adult and adolescent patients will have separate living areas, and the maximum-security unit will include strict security measures to ensure the safety of patients, staff, and the community. The new facility will include state-of-the-art therapeutic spaces that align with evidence-based treatment. Single-person rooms are designed to balance privacy and security for patients, and natural light throughout the facility will help promote recovery and healing. Patients will have access to common activity areas and outdoor courtyards to encourage social interaction. For nearly 140 years, Terrell State Hospital has played a crucial role in providing services to Texans in need. The hospital first opened in July 1885 after the 18th Texas Legislature passed a bill calling for the establishment of a psychiatric hospital in North Texas. Today, the hospital serves 31 counties. Since 2017, Governor Abbott and the Texas Legislature have appropriated more than $2.5 billion in funding to replace, renovate, or expand state hospitals across Texas. Construction continues on the Texas Behavioral Health Center at UT Southwestern in Dallas, and HHSC hosted grand openings this past spring for replacement state hospitals in Austin and San Antonio. Construction is scheduled to begin this fall for a replacement hospital in Wichita Falls and later this year for new hospitals in Amarillo and Lubbock. For more information about state hospital construction projects, visit the HHSC Changes to the State Hospital System page . Renderings for the new Terrell State Hospital are available here.