The Mental Health Infrastructure Improvement Act of 2025 authorizes the Secretary of Health and Human Services to provide loans and loan guarantees up to $200 million per year (through 2030) to help hospitals, clinics, and treatment facilities plan, construct, or renovate mental health and substance use disorder treatment centers. The bill prioritizes funding for facilities that expand psychiatric bed capacity in underserved areas, serve rural communities, or provide integrated mental health and addiction services, with at least 25 percent of funds reserved for pediatric and adolescent facilities. Borrowers must contribute at least 25 percent of project costs from non-federal sources, and loans cannot exceed 20 years in length. Any revenues generated by the loan program that exceed its costs will be deposited into a new Mental Health and Substance Use Treatment Trust Fund to support community mental health block grants, creating a potential sustainable funding stream for ongoing mental health services.
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