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S1673119th CongressWALLET

Mental Health Infrastructure Improvement Act of 2025

Sponsored By: Senator Merkley, Jeff [D-OR]

Introduced

Summary

Federal loans and loan guarantees to expand and modernize pediatric and adult mental health and substance use treatment facilities. This bill would authorize the Health and Human Services Secretary to make loans and loan guarantees for planning, construction, renovation, telehealth upgrades, adding or converting psychiatric and substance use disorder beds, and limited refinancings, and it would create a Treasury trust fund to support community mental health block grants.

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  • Families and children: At least 25% of program funds each fiscal year must go to facilities that primarily serve pediatric and adolescent populations, increasing focus on child and teen services.
  • Rural and underresourced communities: Projects that add psychiatric or substance use disorder beds in counties with insufficient capacity or that serve high-need rural or underresourced areas receive funding priority.
  • Hospitals, providers, and borrowers: The program would require borrowers to finance at least 25% of project costs from nonfederal sources and would limit program funding to $200.0 million per fiscal year for 2026 through 2030.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 0 costs, 1 mixed.

Loans to build mental health facilities

If enacted, the bill would let HHS make loans and loan guarantees to public and private hospitals and mental health or substance use treatment providers. Money could pay to build, renovate, add or convert inpatient psychiatric and SUD beds, and upgrade telehealth and digital systems. Congress must approve funds each year. The program would be capped at $200,000,000 per year for fiscal years 2026–2030 and at least 25% each year must go to pediatric and adolescent facilities. Loans would have limits: maturities no longer than 20 years or half the asset life, guarantees would cover no more than 80% of a lender's loss, and borrowers must finance at least 25% of projects from non‑Federal funds. Refinancing is allowed only for loans made within 24 months before enactment and the authority ends 24 months after enactment. The bill would also set fees and interest rules that raise or stabilize borrowing costs, such as a minimum interest floor tied to Treasury rates plus the government cost plus 1% and guarantee fees that cover expected defaults plus 1% and are reviewed every six months.

Trust fund for community mental health

If enacted, the bill would create a Mental Health and Substance Use Treatment Trust Fund in the Treasury. Revenues from the loan program that exceed program costs could be deposited into the Trust Fund. Money in the Trust Fund would be available, subject to later Acts of Congress, to pay for community mental health block grants.

Sponsors & CoSponsors

Sponsor

Merkley, Jeff [D-OR]

OR • D

Cosponsors

  • Cindy Hyde-Smith

    MS • R

    Sponsored 5/8/2025

Roll Call Votes

No roll call votes available for this bill.

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