The Mental Health Infrastructure Improvement Act of 2025 authorizes the federal government to provide loans and loan guarantees to help hospitals and treatment facilities build, renovate, or upgrade mental health and substance use disorder treatment facilities. These loans can support construction projects, digital infrastructure improvements, and efforts to add psychiatric and addiction treatment beds. The bill prioritizes funding for areas with insufficient treatment capacity, rural and underserved communities, and facilities serving children and adolescents—requiring at least 25 percent of available funds to go toward pediatric facilities. Eligible borrowers include hospitals, treatment centers, and nonprofit organizations, though they must contribute at least 25 percent of project costs from non-federal sources. The program is capped at $200 million per year through fiscal year 2030, with loan terms not exceeding 20 years, and any revenue generated in excess of program costs will fund community mental health block grants.
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