Rep. Dan Goldman Joins Councilmembers Erik Bottcher, Lynn Schulman, and Community Advocates to Introduce Legislation Strengthening Medicaid for People Living With Serious Mental Illness
May 12, 2025
‘Strengthening Medicaid for Serious Mental Illness Act’ Incentivizes State Support for Those with Serious Mental Illness
Over One-Third of Individuals with Serious Mental Illness Do Not Receive Any Form of Mental Health Treatment
Read Bill Text Here
See Pictures and Video from Press Conference Here
New York, NY – Congressman Dan Goldman (NY-10) was joined by Council Members Erik Bottcher, Health Committee Chair Lynn Schulman, and mental health advocates in reintroducing the ‘Strengthening Medicaid for Serious Mental Illness Act’ today, which would support individuals living with serious mental illnesses (SMI) such as schizophrenia, bipolar illness, and major depressive disorder. Council Member Erik Bottcher will introduce a Council Resolution in support of the federal bill putting on record the New York City Council’s support for its passage.
“The mental health crisis in America demands urgent action, resources, and federal support to ensure every American can access the care they need," Congressman Dan Goldman said. "Mental health care has been overlooked and underfunded for decades, and this legislation takes a critical step forward by providing millions of Americans living with severe mental illness access to lifesaving treatment and support by expanding Medicaid services for our most vulnerable. We have an obligation to guarantee adequate care for every one of our neighbors.’
Council Member Erik Bottcher said, “The Strengthening Medicaid for Serious Mental Illness Act is a critical step in tackling the nationwide mental health crisis. This legislation expands Medicaid to cover much-needed community-based mental health services and incentivizes states to meet higher standards of care. As we mark Mental Health Awareness Month, there is no better time to ensure these life-saving services are affordable and accessible to everyone who needs them. I’m proud to sponsor a City Council resolution supporting this bill, and I thank Congressman Dan Goldman for his leadership on this critical issue.”
Council Member Lynn Schulman, Chair of the Committee on Health, said, "Access to quality mental health care is a fundamental right, and we must do everything we can to support those living with serious mental illness. Strengthening Medicaid to ensure comprehensive care is essential for our communities, especially for the most vulnerable among us. I am proud to support Congressman Dan Goldman and Senator Gillibrand’s legislation, as well as Council Member Bottcher’s efforts to advance this critical initiative at the city level. I am committed to working alongside my colleagues to ensure that all New Yorkers have access to the mental health services they need and deserve."
Council Member Linda Lee, Chair of the Committee on Mental Health, Disabilities, and Addiction, said, “The mental health crisis continues to impact families throughout our city, state, and nation, with an estimated 15.4 million Americans living with serious mental illness. Now more than ever - especially amid ongoing uncertainty at the federal level - it is critical that individuals in need have access to life-saving resources and a full continuum of care. I’m proud to co-prime this resolution with Council Member Bottcher in support of federal legislation introduced by Representative Goldman and Senator Gillibrand to expand Medicaid coverage for those with severe mental illness. Medicaid is a vital healthcare lifeline for low-income individuals, and strengthening it to address the mental health needs of our most vulnerable will help us build healthier, more resilient communities.”
Douglas C. Brooks, LCSW-R, the President and CEO of Community Counseling & Meditation (CCM) said, "With our 40 years of experience in providing mental health services to New York City's most vulnerable and marginalized communities, Community Counseling & Meditation proudly stands in support of The Strengthening Medicaid for Serious Mental Illness Act."
Amy Harclerode, Executive Director of the Hetrick-Martin Institute for LGBTQIA+ Youth (HMI), said, "Our community faces a mental health crisis. Since 1979, HMI has delivered intensive, life-saving care to some of our community’s most vulnerable youth. But we do this fully at the generosity of grants and contributions —because Medicaid, as it stands, does not recognize or reimburse the kinds of community-centered, integrated services that actually work. I rise in strong support of the reintroduction of the Strengthening Medicaid for Serious Mental Illness Act, which affirms what we at HMI have always known - that recovery should be possible outside hospital walls, and that Medicaid should support care that reflects the lives, identities, and realities of the people it serves.”
Eric Rosenbaum, CEO of Project Renewal, said, “Project Renewal is proud to support Congressman Goldman and Council Member Bottcher’s efforts through the Strengthening Medicaid for Serious Mental Illness Act to provide a new level of care aimed specifically for individuals with serious mental illness. At Project Renewal, where our multi-disciplinary team of clinicians provide medical care and psychiatric treatment to over 6,000 individuals, we know that proper diagnosis and treatment of serious mental illness is critical to helping individuals break the cycle of homelessness. Yet, our current systems are fragmented and under-resourced—leaving people to cycle between shelters, emergency rooms, jails, and the streets. This legislation will make it possible to offer a package of comprehensive and flexible services that integrate mental health treatment, housing assistance, substance use services, peer support, and supported employment.”
Jody Rudin, president and CEO, Institute for Community Living (ICL), said, "We know that the proper support can help people with the most serious mental health challenges build stability and stop the expensive and inhumane cycle of institutionalization, incarceration, and street homelessness. We have - and are building out - a continuum to provide mobile support and wrap around whole health services, but we need the funding to reach all those who need it. The Strengthening Medicaid for Serious Mental Illness Act would provide the support community based organizations like ICL need to help more people get better. We are grateful to Congressman Goldman for introducing this bill and Council Member Bottcher for supporting it though a resolution."
Evette Maduro CEO, Betances Health Center, said, “At Betances Health Center, we witness daily the urgent need for comprehensive mental health services—especially for those living with serious mental illness. The Strengthening Medicaid for Serious Mental Illness Act is a pivotal step toward ensuring no individual is left behind due to gaps in care. We are proud to stand with Congressman Goldman and Council Member Bottcher in supporting legislation that prioritizes equity, dignity, and access for our most vulnerable community members."
Brooke Montes, Alliance’s Senior Vice President of Communications, said “As a NYC-based multiservice organization with 34 years of experience delivering community-based health services, Alliance for Positive Change applauds Congressman Goldman and NYC Council Member Bottcher for calling on the US Congress to pass the Strengthening Medicaid for Serious Mental Illness Act. Investing in meaningful community-based services for people with serious mental health challenges is a common-sense, cost-effective way to reduce emergency hospitalizations, mental health crises, fatal overdoses, chronic homelessness, and justice system involvement. Alliance’s three decades of work has shown that combining multidisciplinary care teams, peer-based support, and interagency partnerships yields benefits far greater than the sum of the parts—for individuals, families, and communities. This legislation is an urgently needed investment.”
Daniel Pichinson, President & CEO of Ryan Health, said “Access to mental health services where people live and work is key to getting them the care that they deserve and need. Ryan Health has a long history of providing impactful mental health services in our Emotional Wellness Centers and primary care locations. We support the Strengthening Medicaid for Serious Mental Illness Act to increase availability of treatment to improve the lives of New Yorkers living with mental illness.”
Noeline Maldonado, Executive Director of The Healing Center, said, "Restricting equitable access to Medicaid removes a key pathway to comprehensive care for individuals with mental illness and is antithetical to the proposed goals of any credible mental health policy."
Ken Zimmerman, CEO of Fountain House, said, “We applaud Representative Goldman for his leadership on the introduction of the ‘Strengthening Medicaid for Serious Mental Illness Act’ and thank both him and Councilmember Erik Bottcher for recognizing community-based programs like Fountain House and the clubhouse model as integral in the continuum of mental health care. The clubhouse model is not only highly effective, but also a responsible way to ensure a return on investment while promoting recovery and thriving -- Medicaid costs for Fountain House members were 21% lower compared to the highest risk population, research shows. Our nation must support and recognize the more than 14 million people living with serious mental illness, especially at this critical time, by prioritizing dignity, agency, and community as fundamental building blocks. This bill is a significant step toward a more person-centered, holistic, and proven approach to mental healthcare in the U.S. by focusing on and investing in targeted supports that help people with serious mental illness thrive."
Over 15 million adults in the United States are currently living with a serious mental illness, while over one-third of these individuals receive zero mental health treatment. This legislation creates a new package of services under Medicaid that specifically aims to provide care to individuals living with SMI, sets a national standard for SMI care, and incentivizes states to provide intensive community-based services to treat SMI.
The bill is endorsed by the Bazelon Center for Mental Health Law and the National Health Law Program.
To better support those living with SMI, the Strengthening Medicaid for Serious Mental Illness Act would:
Create a new waiver program granting Medicaid authority to provide states with an option to offer a package of services targeted specifically to individuals with SMI. The package would include:
- Assertive community treatment, an evidence-based, highly individualized team-based service designed to support adults with the most intensive mental health needs;
- Supported employment to help individuals get and keep a job;
- Peer support services from individuals who have lived or living experiences with mental health conditions;
- Mobile crisis intervention teams that can help de-escalate situations and link individuals to other community-based services;
- Intensive case management; and
- Housing-related activities and services to support individuals with transitioning to and maintaining housing.
Require states to adhere to certain standards, like tracking disparities in treatment, to ensure services are delivered with care to all in need.
Create a tiered Federal Medical Assistance Percentage (FMAP) increase to incentivize states to provide intensive community-based services to individuals with SMI. This means that states could receive an increase up to 25 percent in funds allocated by the federal government for their Medicaid programs.
Congressman Dan Goldman has worked tirelessly to expand mental health care for people across the country.
Last year, Congressman Goldman introduced the ‘Michelle Alyssa Go Act’ to increase the number of federal Medicaid-eligible in-patient psychiatric beds for individuals who are seeking treatment for both mental health and substance use disorders.
Last Congress, Congressman Goldman joined colleagues in introducing the ‘Expanding Access to Mental Health Services in Schools Act’ to address the urgent need for mental health professionals in schools. The bill would increase the number of mental health service providers in schools, particularly in high-need areas, by providing competitive grants to local educational agencies for recruitment, hiring, retention, and diversification of mental health service providers.
In 2023, Congressman Goldman joined Congresswoman Grace Meng (NY-06) in introducing the 'Mental Health Workforce and Language Access Act' to establish a grant program administered by the Department of Health and Human Services to provide federal funds to community health centers to help them hire qualified mental health professionals who are fluent in a language other than English.
Congressman Goldman is a member of the Congressional Mental Health Caucus
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Issues:Health