This bill appropriates funds to the Department of Health and Human Services (DHHS) to enhance community housing options for individuals with mental illness. Specifically, it allocates $1,500,000 for the fiscal year ending June 30, 2026, to support existing mental health housing stocks and expand facilities through grants to community mental health centers, with a maximum of $50,000 per bed. Additionally, it provides $1,000,000 for the fiscal years ending June 30, 2026, and June 30, 2027, for supported housing programs operated by designated community mental health centers, aimed at covering non-billable services. The bill also directs DHHS to adjust Medicaid reimbursement rates for housing programs catering to high acuity patients, increasing the daily rate from approximately $278 to $350, eligible for a 50% federal match.

The bill includes provisions that are nonlapsing, ensuring that the appropriated funds remain available until fully utilized. It mandates that the DHHS issue a request for grant applications by December 1, 2025, to facilitate the disbursement of housing grants. The effective date for the act is set for July 1, 2025. The fiscal impact indicates that while the bill does not provide new funding or positions, it anticipates expenditures of $750,000 in FY 2026 and $125,000 in FY 2027, all sourced from the general fund.