Mental Health Infrastructure Improvement Act of 2025
Sponsored By: Representative Rep. McClellan, Jennifer L. [D-VA-4]
Introduced
Summary
Would create a federal loan and loan-guarantee program to build, renovate, and upgrade facilities that treat mental health and substance use disorders. It would also establish a Treasury trust fund to capture net program revenues for community mental health block grants.
Show full summary
- Families and children: At least 25 percent of annual awards would be set aside for facilities that serve pediatric and adolescent populations, aiming to expand beds and services for young people.
- Rural and underresourced communities: Projects that expand psychiatric or substance use disorder capacity in counties with insufficient care or that serve high-need rural areas would get priority, including funding for telehealth and integrated services.
- Providers and hospitals: Eligible entities could use loans or guarantees for planning, construction, renovation, digital upgrades, or adding and converting inpatient psychiatric and SUD beds. Borrowers would need at least 25 percent nonfederal financing and loans would have a maximum final maturity of 20 years or 50 percent of the asset’s useful life.
*The program would cap total loans and loan guarantees at $200 million per year for FY2026–2030 and would deposit net program revenues into a Mental Health and Substance Use Treatment Trust Fund for community mental health block grants.*
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 1 benefits, 1 costs, 1 mixed.
Trust fund for community mental health
This bill would create a Treasury trust fund for mental health and substance use treatment. If program revenues from the loan program exceed its costs, those excess amounts could be appropriated into the fund and would stay available until used. Congress could then use the fund for community mental health block grants, if it approves the spending.
Loans to expand mental health care, with limits
HHS would lend or guarantee loans so hospitals and clinics can build or upgrade mental health and substance use facilities, including telehealth and added inpatient beds. Priority would go to projects that add beds in low‑capacity counties, serve high‑need rural or underresourced areas, and offer integrated care. At least 25% of funds each year would support facilities serving mainly children and teens. Borrowers would need 25% non‑Federal financing; guarantees could cover up to 80% of losses; final maturity would be 20 years or half the asset’s life, whichever is less. Refinancing would be limited to loans made within 24 months before enactment and would end 24 months after; guarantees would not cover tax‑exempt loans; on default, HHS could pay 75% of the lender’s loss. From FY2026–FY2030, Congress would need to fund the program, and total loans and guarantees would be capped at $200 million each year.
New fees and minimum interest for facility loans
Fees for loan guarantees would be set to cover expected default costs plus at least 1%, and reviewed every six months for new guarantees. Loan interest rates would track Treasury benchmarks, with a minimum at the government’s estimated cost plus 1%, updated each quarter. These rules could raise borrowing costs for facilities that use the program.
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Sponsors & CoSponsors
Sponsor
Rep. McClellan, Jennifer L. [D-VA-4]
VA • D
Cosponsors
Rep. Bacon, Don [R-NE-2]
NE • R
Sponsored 5/8/2025
Rep. Fitzpatrick, Brian K. [R-PA-1]
PA • R
Sponsored 5/15/2025
Roll Call Votes
No roll call votes available for this bill.
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