Federal School Mental Health Grant Cuts Raise Concerns in Rural Districts

By: Dr. Kirkpatrick Williams

In parts of rural upstate New York, schools have reported having more than 1,100 students per mental health provider. In regions with limited access to transportation and outside resources, school-based counselors and social workers often serve as the primary support system for students’ mental health needs.

One such initiative in the Finger Lakes region, coordinated by Hennessey Lustica of the Seneca Falls Central School District, aimed to expand the mental health workforce by hiring and training school psychologists, counselors, and social workers through federal grant funding. That effort, along with similar programs across the U.S., is now at risk following a recent decision to end federal mental health grants for schools.

The $1 billion in grants was originally created through legislation passed in 2022, aimed at addressing school-based mental health following the Uvalde, Texas, school shooting. The program provided financial support to districts to increase access to mental health professionals, particularly in underserved and rural areas.

According to the U.S. Department of Education, the decision to cancel current grants stems from concerns about program compliance with civil rights law. While some recipients, including Lustica, have been informed of violations, the specific issues cited in individual cases have not always been disclosed in detail. The department has stated that future grant cycles will be restructured and reissued to ensure alignment with federal guidelines.

Education Department spokesperson Madi Biedermann said the goal is to ensure that public funding supports programs rooted in evidence-based practices aimed specifically at improving student mental health outcomes.

In response, Lustica expressed concern over the effect the grant cancellations may have on students, especially in rural areas. She noted that more than 20,000 students across the 21 school districts her program supports may lose access to mental health resources. Lustica and others plan to appeal the decision.

Several states have also been affected. California’s West Contra Costa Unified School District will lose nearly $4 million in funding. Birmingham City Schools in Alabama will not receive the remaining portion of its $15 million grant. In Wisconsin, the state Department of Public Instruction expects to lose $8 million in projected funds intended for staff retention and career development programs in school mental health.

Wisconsin State Superintendent Jill Underly called the decision concerning, particularly in light of growing demand for mental health services in schools.

During recent House and Senate hearings, lawmakers inquired about the grant cancellations. Education Secretary Linda McMahon indicated that school mental health remains a department priority and that the grants will be rebid to ensure they meet all legal requirements.

Programs supported by these grants have trained mental health professionals and placed them in schools. In New York, nearly 180 students completed training through the program managed by Lustica, and approximately 85% of those graduates have been hired into underserved areas.

Graduate student Danielle Legg, who worked in a local district under the grant program, said access to mental health services in some areas is limited to what students receive in school, as many families face financial and transportation challenges.

Susan McGowan, a school social worker in Geneva City School District, emphasized the impact these grants had in helping fill difficult-to-staff positions and supporting students, teachers, and school culture overall.

“The loss of these training pipelines could reduce the capacity of schools to respond to student mental health needs,” she said.

Advocates for school mental health programs continue to monitor developments and await details on how future funding may be restored or restructured.