Rep. Budzinski. U.S. House bill proposes expanded Medicare bonuses for mental health providers

The new bill authored by U.S. Rep. Nikki Budzinski in the U.S. House aims to increase Medicare incentives for practitioners providing mental health and substance use disorder services in shortage areas, according to the U.S. Congress.

H.R.7324 was introduced on Feb. 3, 2026 during the 2026 regular session of the 119th Congress. The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill aims to amend the Social Security Act to expand the Medicare health professional shortage area bonus program by including practitioners who provide mental health and substance use disorder services. Specifically, it proposes to offer a 10% bonus for physician services in designated health professional shortage areas and a 15% bonus for specified health services related to mental health in designated mental health professional shortage areas. The bill defines “specified health services” as those related to the diagnosis, evaluation, or treatment of mental health disorders and substance use disorders, applicable to services provided starting January 1, 2027. It also clarifies the term “applicable practitioner” to include various healthcare professionals, such as physician assistants, nurses, clinical social workers, psychologists, marriage and family therapists, and mental health counselors.

The bill was introduced by Rep. Nikki Budzinski (Democrat-IL-13th District) and co-sponsored by Rep. Tracey Mann (Republican-IL-1st District).

Since the beginning of the current session, Rep. Budzinski has introduced another 15 bills.

A related bill, S.683, was also introduced in the Senate on Feb. 24, 2025. Congressional records list it as a related bill to H.R.7324.

Congressional bills can originate in either the U.S. House of Representatives or the U.S. Senate, except for revenue-related measures, which must begin in the House. After introduction, bills are assigned to committees for review, hearings, amendments and debate before they can advance to a vote in each chamber. If both chambers approve identical versions, the legislation is sent to the president, who may sign it into law or veto it. Congress operates in two-year terms, with each term numbered sequentially and divided into two annual sessions. The legislative process and official bill records are maintained by the U.S. Congress and published through Congress.gov.

Nikki Budzinski is a Representative from Illinois, having been elected as a Democrat to the One Hundred Eighteenth and to the succeeding Congress, serving since January 3, 2023. She holds a B.A. from the University of Illinois, Urbana-Champaign, obtained in 1999, and has served in various roles, including senior advisor to the Governor of Illinois J.B. Pritzker from 2019 to 2020 and chief of staff in the Office of Management and Budget in 2021.