Federal lawmakers are making another concerted effort to improve Medicaid behavioral health funding through the reintroduction of the Medicaid Bump Act. On March 12, a bipartisan, bicameral group of legislators introduced the bill in both the U.S. Senate and House. The legislation proposes a 90% enhanced Federal Medical Assistance Percentage (FMAP) for states that increase their spending on behavioral health services above 2019 levels. This move is intended to expand access, improve quality of care, and enhance the overall capacity of behavioral health services under Medicaid.
The bill explicitly prohibits states from using the new federal dollars to replace existing funding. Instead, the enhanced FMAP must be used to grow and improve provider networks and infrastructure for mental health and substance use disorder (SUD) services. This is a significant step in addressing long-standing gaps in Medicaid behavioral health funding, particularly for low-income individuals who rely on Medicaid as their primary source of care.
Bipartisan Support to Address Urgent Needs
Rep. Paul Tonko (D-N.Y.), the bill’s sponsor in the House, emphasized the urgency of action: “Systemic underinvestment has left far too many out in the cold and without a place to seek these vital resources. Our Medicaid Bump Act begins to right that wrong.” Sen. Tina Smith (D-Minn.) and Sen. Debbie Stabenow (D-Mich.) are leading the effort in the Senate, joined by co-sponsors including Rep. Brian Fitzpatrick (R-Penn.) and Rep. David Trone (D-Md.).
About 40% of Medicaid enrollees experience behavioral health conditions, yet access to appropriate treatment continues to fall short. The Medicaid behavioral health funding outlined in this bill would help close that gap by incentivizing states to prioritize mental health and SUD treatment. The bill also charges the Secretary of Health and Human Services (HHS) with defining which services qualify for the enhanced FMAP and introduces an annual reporting requirement to track improvements in service access and outcomes.
History and Context of the Medicaid Bump Act
This isn’t the first time the Medicaid Bump Act has surfaced. It was originally introduced in 2017 by then-Rep. Joe Kennedy III, with subsequent reintroductions in 2019 and 2021. Tonko refiled the bill in 2023, continuing the push to reform how Medicaid behavioral health funding is handled across the country.
The timing of this legislation aligns with broader Medicaid reforms under the Biden administration. Recent changes include making certified community behavioral health centers (CCBHCs) permanent and expanding the role of master’s-level clinicians—such as social workers and marriage and family therapists—in Medicaid services. These developments show progress, but many experts agree that deeper investments are still needed. A recent analysis revealed that 75% of states still lack core crisis response services like mobile teams and 24/7 call centers—highlighting the urgency of enhanced Medicaid behavioral health funding.
Why Enhanced Medicaid Behavioral Health Funding Matters Now
As demand for behavioral health services continues to rise, particularly in underserved communities, the Medicaid Bump Act could provide a crucial lifeline. By directing additional federal support toward building infrastructure and expanding services, the legislation aims to create a more responsive and resilient mental health care system. This renewed commitment to Medicaid behavioral health funding marks a hopeful turn toward systemic change—one that centers the needs of patients and providers alike.
Whether this iteration of the bill gains the traction needed to pass remains to be seen, but one thing is clear: without significant improvements to Medicaid behavioral health funding, millions of Americans will continue to face barriers in accessing life-saving care.
