The New Jersey Mental Health Residential Reform Treatment Act aims to address the growing crisis of mental health and substance use disorders in the state by establishing a licensure pathway for non-hospital based inpatient residential mental health treatment facilities. These facilities will provide mid-to-long-term treatment lasting 45 to 120 days, which includes medication management, skill-based therapies, and holistic, trauma-based services tailored for adolescents and adults. The act recognizes the current limitations of hospital-based services, which primarily focus on short-term psychiatric stabilization, and seeks to fill the critical gap in care that has left many residents without adequate support.

In addition to creating these facilities, the act also includes initiatives to tackle the shortage of mental health professionals in New Jersey, which affects nearly 40,000 residents. It mandates the establishment of a Mental Health Workforce Development Program that will provide grants for training, loan forgiveness for professionals committing to practice in the state, and salary incentives to retain clinicians. The act outlines rigorous licensure requirements for the new facilities, ensuring compliance with evidence-based treatment standards and safety protocols. By integrating these facilities into the state's mental health service continuum and monitoring their impact on hospital capacity, the act aims to improve access to comprehensive mental health care and reduce long-term costs associated with untreated mental illness.