1. Short title This Act may be cited as the Strengthening Medicaid for Serious Mental Illness Act . 2. Purposes The purposes of this Act are the following: (1) To amend title XIX of the Social Security Act to increase Federal Medicaid funding for States that provide intensive community-based services for adults with serious mental illness. (2) To increase access to intensive community-based services in the most integrated setting appropriate. (3) To prevent unnecessary hospitalization or other institutionalization. (4) To promote continuity of care and coverage for young adults after they turn 21 and age out of the early and periodic screening, diagnostic, and treatment services benefit. 3. Increased FMAP for providing intensive community-based services under Medicaid (a) In general Section 1915 of the Social Security Act ( 42 U.S.C. 1396n ) is amended by adding at the end the following new subsection: (m) State plan amendment option To provide intensive community-Based services for elderly and disabled individuals (1) In general Subject to the succeeding provisions of this subsection, beginning January 1, 2025, a State may provide through a State plan amendment for the provision of medical assistance for intensive community-based services (not including room and board) for eligible individuals (as defined in paragraph (2)), without determining that but for the provision of such services the individuals would require the level of care provided in a hospital, nursing facility, or intermediate care facility described in section 1905(d), but only if the State meets the following requirements: (A) Application of HCBS State plan amendment requirements (i) In general Except as provided in clause (ii), the State satisfies the requirements described in subparagraphs (A) through (J) of subsection (i)(1) (except that, in applying such subparagraphs for purposes of this subsection, each reference to home and community-based services shall be deemed to be a reference to intensive community-based services ). (ii)