Placing people with mental illnesses in nursing homes is an important policy concern. Using nursing home Minimum Data Set assessments from 2005, we found much variation across states in both the rates of mental illness among nursing home admissions and the estimated rates of admission among people with mental illnesses. We also found that newly admitted people with mental illnesses were younger and more likely to become long-stay residents than those admitted with other conditions. Taken together, these results suggest that state-level mental health and nursing home factors may influence the likelihood of long-term nursing home use for people with mental illnesses.