Bill Proposes $1 Billion Over 5 Years to Build and Upgrade Mental Health and Addiction Treatment Facilities

This legislation, the Building Capacity for Care Act, aims to tackle the shortage of mental health and substance use disorder (SUD) treatment options by investing in the places that provide care. It authorizes the government to offer loans, loan guarantees, and grants totaling up to $200 million per year from fiscal year 2025 through 2029. The goal is to help public and private facilities – think hospitals, dedicated treatment centers – build new spaces, renovate existing ones, upgrade their tech infrastructure, or add more beds specifically for mental health and SUD patients.

Funding the Frontlines

So, how does this work? Section 2 lays out the financial tools. Eligible facilities can apply for assistance to fund projects like constructing a new wing for psychiatric care, renovating an outpatient SUD clinic, or implementing better digital systems for patient records and telehealth. There are strings attached: loan guarantees cover up to 80% of potential loss, loan terms max out at 20 years, and borrowers generally need to chip in at least 25% of the project cost from other sources. A limited refinancing option is available for certain loans taken out shortly before this act passes.

Where Does the Money Go?

The bill isn't just throwing money out there; it tries to direct funds where they're needed most. To get funding, facilities generally need to show they're either adding beds in areas that don't have enough, serving high-need rural or under-resourced communities, offering a wide range of services, or handling specialized care for complex cases. When awarding grants, priority goes to facilities in designated Mental Health Professional Shortage Areas or counties struggling with higher-than-average drug overdose or suicide rates. Imagine a community health center in an underserved area using a grant to finally add dedicated beds for crisis stabilization – that’s the kind of targeted impact envisioned.

Building a Longer-Term Safety Net

Beyond the direct funding for facilities, Section 3 establishes a new Mental Health and Substance Use Treatment Trust Fund. This fund is designed to capture any revenues generated by the loan program that exceed its costs. The money collected in this Trust Fund is earmarked specifically to support community mental health services through block grants, though the exact allocation will depend on future appropriation decisions. This creates a potential ongoing resource stream dedicated to bolstering mental health care at the community level.