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New School Mental Health Funding: A Shift in Focus

USAFriday, December 12, 2025
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The U.S. Department of Education has announced a significant change in their funding strategy, allocating over $208 million to bolster mental health services in schools. This move marks a notable shift away from diversity, equity, and inclusion (DEI) programs that were previously supported.

Funding Distribution

The funds are being distributed to 65 recipients through two programs:

  • Mental Health Service Professional Demonstration
  • School-Based Mental Health programs

A substantial portion, $120 million, is earmarked for rural communities. This initiative aims to increase the number of qualified mental health professionals in schools, particularly in areas with the greatest need.

Shift in Funding Priorities

This announcement follows an earlier decision to halt over 200 existing grants. These grants were criticized for prioritizing ideology over student needs. They included programs that:

  • Used racial preferences in hiring
  • Funded DEI certifications
  • Mandated trainings that the department argued promoted discrimination and what they termed "radical gender ideology."

Administration's Goals

Education Secretary Linda McMahon emphasized that the Trump administration's goal is to refocus on:

  • Merit-based hiring
  • Evidence-based interventions

The new grants will prioritize:

  • Increasing the number of school psychologists
  • Improving student-to-provider ratios
  • Helping states and districts build sustainable mental health services

Updated Rules and Local Control

Under the updated rules, funds will now be directed to state or local education agencies, which must partner with colleges and universities. This change gives local school leaders more control over program design.

McMahon expressed pride in the administration's ability to reallocate these funds before the end of the year, calling it a significant victory for the education system.

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