The Brattleboro Retreat will be adding 14 beds and 35 jobs.
Retreat President Rob Simpson says the expansion is needed because admissions are expected to continue to grow at the psychiatric hospital in the coming months.
Currently, the Retreat currently has 95 beds, most of which are full.
The Brattleboro Reformer says last year the Retreat saw its admissions jump by 23 percent. Nationwide, the increase in psychiatric facilities was just 3.5 percent.