Requires the Department of Health and Human Services (DHHS), Division of Mental Health, Developmental Disabilities, and Substance Use Services (Division), to develop a pilot program that allows religious institutions to better respond to individuals in the community with mental health or substance use service needs. Specifies that the program will only be offered initially to religious institutions serving Vance County, Granville County, or both. Requires the Division to collaborate with local health departments and local management entity/managed care organization (LME/MCO) in those counties in developing the pilot program. Defines mental health and religious institution. Provides for three levels of Faith in Mental Health designations, which institutions may apply for: a basic designation, intermediate designation, and advanced designation. Lists criteria for each designation. Requires each participating institution to complete training deemed essential by the Division and to post the Faith in Mental Health designation on its website.

Requires the Division to develop the program application, award designations to religious institutions, and submit a report by no later than March 1 of each year to the specified NCGA Committee, on listed subjects, including the implementation and progress of the pilot program. Allows the Division to delegate the first two duties to a local health department but specifies that the Division retains ultimate responsibility for program eligibility.

Effective July 1, 2024, appropriates $10,000 from the General Fund to the Division to be used to develop the pilot program. Permits the Division to allocate a portion of those funds to each religious institution with an approved application to offset participation costs. Allows the Division to set maximum funding awards allocated for each level of designation.