The U.S. Department of Health and Human Services (HHS), through the Centers for Medicare & Medicaid Services (CMS) and its Center for Medicare and Medicaid Innovation, has released a Notice of Funding Opportunity (NOFO) for the Innovation in Behavioral Health (IBH) Model, Cohort II. This seven-year cooperative agreement, with up to $7.5 million available per recipient, seeks to select up to five state Medicaid agencies (SMAs) to implement a voluntary service delivery and value-based payment (VBP) model. The model promotes integrated care in specialty behavioral health (BH) settings for adult Medicaid, Medicare, and dually eligible beneficiaries with moderate to severe mental health conditions and/or substance use disorders (SUDs). Key objectives include improving care quality, increasing access, achieving balanced outcomes, reducing avoidable emergency department and inpatient utilization, and strengthening health IT systems capacity. The NOFO outlines program requirements, including recruitment of eligible specialty BH organizations, design and implementation of an integrated care delivery framework focusing on diabetes, hypertension, and tobacco use, and development of a Medicaid payment approach aligned with Medicare.