The 2023 behavioral health funding bill, signed by President Joe Biden on December 29, 2022, represents one of the largest federal investments in behavioral health in recent memory. Covering nearly every aspect of the sector, the legislation allocates at least $10 billion directly to mental health and substance use disorder services in fiscal year 2023. Beyond direct funding, the bill also dedicates tens of millions of dollars toward scientific research through the National Institutes of Health, bolstering evidence-based practices even if the funds do not flow directly into patient care.
Leaders in the field have praised the 2023 behavioral health funding bill for its unprecedented scale and scope. Chuck Ingoglia, president and CEO of the National Council for Mental Wellbeing, described it as “unprecedented,” emphasizing the extensive provisions that will affect both providers and patients. From telehealth flexibilities to workforce development and funding for Certified Community Behavioral Health Clinics, the bill is a major step forward in federal support for behavioral health care.
Expanding Access Through Telehealth and Buprenorphine Reform
The 2023 behavioral health funding bill extends telehealth flexibilities for Medicare beneficiaries, ensuring access to care even in rural or underserved areas. Telehealth has become a critical component of behavioral health care, and these provisions make it easier for patients to receive treatment remotely.
Additionally, the bill eliminates the DEA waiver previously required to prescribe buprenorphine under the Mainstreaming Addiction Treatment Act. This reform is designed to reduce stigma, eliminate administrative barriers, and expand access to evidence-based treatment for opioid use disorder. Mark Dunn, director of public policy for the National Association of Addiction Treatment Providers, called this change “by far the biggest advancement we’ve made in an omnibus,” underscoring its potential nationwide impact.
Funding and Expansion of Certified Community Behavioral Health Clinics
Certified Community Behavioral Health Clinics remain a cornerstone of federal behavioral health policy. The 2023 behavioral health funding bill increases funding to $385 million, ensuring stability for existing programs while supporting ongoing expansion. These clinics provide integrated, comprehensive care in a single location, addressing gaps in access that became especially visible during the pandemic.
Parity and Coverage Reforms
Another critical component of the 2023 behavioral health funding bill is its focus on mental health and addiction parity. The legislation provides $50 million over five years to help states enforce federal parity requirements and removes exemptions that allowed some public health plans to bypass parity rules. The Kennedy Forum estimates that this change alone will improve coverage for over a million children and families, a meaningful step toward equitable mental health access.
Medicare and Medicaid Improvements
For Medicare beneficiaries, the 2023 behavioral health funding bill expands coverage to include intensive outpatient mental health programs and services from marriage and family therapists and mental health counselors. Mobile crisis care reimbursement is also increased, helping to connect individuals to care before a crisis escalates.
Medicaid reforms in the bill include clarifying redeterminations post-pandemic, creating searchable provider directories to address “phantom networks,” and extending 12 months of coverage for children and new mothers. With Medicaid covering about 90 million people—27% of the U.S. population—these changes will significantly improve access to behavioral health services nationwide.
Targeted Funding Initiatives
The 2023 behavioral health funding bill also provides funding for specific programs, including:
- $3 million for a maternal mental health hotline and $10 million for maternal depression screening
- $94 million for the National Child Traumatic Stress Initiative
- $13 million for pediatric mental health access programs
- $140 million for Project AWARE, raising mental health awareness in K–12 schools
- $501.6 million for the 988 Suicide & Crisis Lifeline
- $1.58 billion for State Opioid Response Grants
- $4.4 billion for NIH research, including the National Institute on Alcohol Abuse and Alcoholism, the National Institute on Drug Abuse, and the National Institute of Mental Health
- $7.5 billion for SAMHSA, a $970 million increase
Bipartisan Support and Future Outlook
The omnibus bill passed the Senate 68-29 and the House 225-201, reflecting bipartisan support for behavioral health reform. Experts say the 2023 behavioral health funding bill lays the foundation for further progress, with the potential to transform access, quality, and workforce development across the sector.
While challenges remain—including inpatient addiction treatment coverage gaps and parity enforcement—the bill represents a historic step forward for mental health and substance use treatment in the United States.
Conclusion
The 2023 behavioral health funding bill is a historic milestone, bringing billions in funding, expanding access through Medicare and Medicaid, supporting workforce development, and improving parity enforcement. For patients, providers, and advocates alike, this legislation reflects a long-overdue recognition of behavioral health as essential to overall health. With bipartisan support and targeted funding initiatives, the bill positions the U.S. to continue improving mental health and addiction care for years to come.
