Mental Health Infrastructure Improvement Act of 2025

This proposal would let the Department of Health and Human Services offer loans and loan guarantees to help build, renovate, or expand mental health and addiction treatment facilities for adults and kids. Funds could also improve telehealth and other patient-care technology, and add inpatient beds where communities don’t have enough. Projects that boost bed capacity, serve rural or under-resourced areas, provide a range of services, or handle complex cases would get priority. At least one-quarter of funding must go to facilities that mainly serve children and teens.

Loans would have guardrails to protect taxpayers. Borrowers generally must cover at least 25% of project costs. Loans can last up to 20 years (or half the useful life of what’s built), and the government won’t back more than 80% of potential losses. Interest rates are tied to Treasury rates, with a goal of staying below comparable private loans, and fees are set to cover expected costs. If a borrower defaults, the government would pay 75% of the lender’s loss and then seek to recover the money. Refinancing of older loans is allowed for a limited two-year window. Total lending is capped at $200 million per year for fiscal years 2026–2030. Any program income above costs goes into a new Trust Fund to support community mental health block grants .

Key points

• Who is affected: Public, for‑profit, and nonprofit treatment providers, including children’s hospitals, psychiatric hospitals, critical access hospitals, rural emergency hospitals, and sole community hospitals; communities with too few inpatient mental health or substance use beds .
• What changes: Access to federal loans/guarantees to build or upgrade facilities, add beds, and improve telehealth; priority for rural/under-resourced areas and projects that expand capacity; at least 25% set aside for youth-focused facilities; strict loan terms to limit risk and cost to taxpayers .
• When: Lending depends on yearly funding and is limited to $200 million each year from FY 2026 through FY 2030; refinancing is available only for older loans and for a two‑year window after enactment; excess program income supports community mental health block grants through a new Trust Fund .