The federal government provides a significant share of funding for mental health services in America, while allowing states flexibility to design their own mental health systems and allocate those funds to county and local levels. The Centers for Medicare and Medicare Services (CMS) spent about $80 billion on mental health services and substance use treatment in 2015 (the most recent year with comprehensive data available). In 1992, The Alcohol, Drug Abuse and Mental Health Services Administration (ADAMHA) Reorganization Act allowed Congress to establish Substance Abuse and Mental Health Services Administration (SAMHSA) block grants (flexible and non-competitive funding) to states. The Substance Abuse Prevention and Treatment Block Grants (SABG) and the Community Mental Health Services Block Grants (MHBG) provide states with funding to plan, implement, and evaluate activities that prevent and treat substance use disorders and to build out community mental health services. Additionally, in October 2022, the U.S. Department of Health and Human Services (HHS) and SAMHSA announced two new funding opportunities through the Bipartisan Safer Communities Act that aim to support new and existing Certified Community Behavioral Health Clinics (CCBHC) nationwide.
This briefing outlined how federal funding is allocated, distributed, and ultimately used by states and community organizations. Speakers also explored the opportunities and challenges of recently passed funding mechanisms for various stakeholders, including state leaders and patients seeking mental health services.