Read twice and referred to the Committee on Finance.
Last progress June 12, 2025 (8 months ago)
Introduced on June 12, 2025 by Raphael Gamaliel Warnock
Increases the federal Medicaid matching rate to 90% for eligible behavioral health services (mental health and substance use disorder care) when those services are delivered at a school or a school-based health center, beginning the first calendar quarter at least 12 months after enactment (subject to non‑duplication rules). Creates a competitive grant program to fund adding mental health and substance use disorder providers in schools and school-based health centers, with application, reporting, and allowable‑use rules for recipients.
Amend subsection (b) of Section 1905 of the Social Security Act by striking "and (ii)" and inserting "(ii), and (kk)" to add a new subsection (kk).
Add new subsection (kk) establishing that, notwithstanding other provisions, the FMAP for State expenditures for medical assistance consisting of services provided by a mental health and substance use disorder care provider and furnished at a school or at a school-based health center shall be equal to 90%, subject to the limitation in paragraph (2). This applies to services furnished on or after the first day of the first calendar quarter beginning on or after the date that is 12 months after the date of enactment of this subsection. The mental health and substance use disorder care provider is described as "as defined in section 3 of the" (text in file is truncated). The school-based health center definition is cited to section 399Z–1(a)(3) of the Public Health Service Act.
Paragraph (1)'s 90% FMAP shall not be applied to State expenditures if applying it would result in a lower FMAP for those expenditures than would otherwise apply without paragraph (1).
Payments made to a territory for medical assistance expenditures that are subject to the 90% FMAP under paragraph (1) shall not be taken into account for the purpose of applying payment limits under subsections (f) and (g) of section 1108 to the extent the payment exceeds the amount that would have been paid to the territory without this subsection.
Congress finds that lack of access to mental health and substance use disorder care in schools and school-based health centers harms the health of children, including those eligible for Medicaid and the Children's Health Insurance Program.
Who is affected and how:
Students and families: Increased access to school-based mental health and substance use disorder services should improve availability of assessment, counseling, treatment, and referral services on campus. This reduces barriers like transportation and scheduling and may expand early intervention.
Schools and school-based health centers: Will be able to expand or contract for more behavioral health staff using grant funds and potentially bill Medicaid at a higher federal match for qualifying services. Schools will face application, staffing, recordkeeping, and reporting obligations tied to grants.
Mental health and SUD providers: Community and school-based providers (including clinicians, counselors, social workers, and SUD specialists) are likely to see more job opportunities in school settings and higher demand for services delivered on school premises.
State Medicaid programs: States can claim an enhanced FMAP (up to 90%) for qualifying services delivered in schools, which reduces the state share of those costs and may incentivize expanded school-based Medicaid billing and program growth. States must ensure the higher match does not reduce other FMAP entitlements and must adapt systems to track eligible claims.
Territories: Receive partial exclusion treatment for territorial payment limits tied to the higher FMAP, which may change how territorial Medicaid allotments are calculated and administered.
Federal agencies and program administrators: Agencies that manage the grant program and Medicaid guidance will need to issue operational rules, administer awards, monitor compliance, and collect program/service reporting data.
Potential tradeoffs and considerations: