New Act Launches $150 Million Matching Fund to Put More Mental Health Counselors in Schools by 2030

The newly proposed Mental Health Excellence in Schools Act is a direct shot at solving one of the biggest problems facing public education right now: the shortage of school-based mental health providers. This bill sets up a new federal-state matching fund program designed to dramatically increase the number of school counselors, social workers, and psychologists coming out of graduate school.

Starting in Fiscal Year 2026, and authorizing $150 million over the first five years (SEC. 2), the program works like this: The Secretary of Education will match, dollar-for-dollar, contributions made by participating graduate schools toward a student’s cost of attendance. The federal contribution can cover up to 50% of a student’s total costs. Essentially, if a university agrees to pay $10,000 toward a student’s tuition, the federal government kicks in another $10,000, cutting the student’s debt burden by $20,000.

The Pipeline Problem Solved

This program is a heavy-duty incentive for both students and universities. For graduate students pursuing careers in high-demand, often underpaid school roles—like school psychology or social work (SEC. 3)—this financial relief makes the career path viable. It’s particularly focused on outreach to students who previously received Federal Pell Grants, meaning the program aims to remove financial barriers for those who need it most.

For universities, this is a chance to expand their mental health training programs with federal support. The bill requires that only accredited or approved programs can participate, ensuring quality control (SEC. 3). However, it also requires the universities to put skin in the game first, which could be a challenge for smaller institutions that might not have the endowments to match federal funds.

What Does This Mean for Your Kid’s School?

The real-world impact here is simple: more qualified professionals in the hallways. Right now, many schools have ratios that make it impossible for one counselor or social worker to adequately serve the student body. If this bill succeeds, it means that by the time the authorized funding peaks in 2028–2030, thousands of newly minted mental health experts will be entering the school system, improving access to services for K–12 students.

The Fine Print and the Catch-All

While the definitions are quite clear on school counseling, social work, and psychology, the bill includes a catch-all: any other field that prepares someone to work as a school-based mental health services provider, provided the Secretary of Education agrees it fits (SEC. 3). This broad authority gives the Secretary flexibility to include emerging fields, but it also means the scope of the program could expand beyond the core disciplines, which could lead to funding being spread thinner than intended.

To keep things accountable, the bill requires annual reports from participating schools detailing graduation rates and job placement, and mandates an independent evaluation within four years (SEC. 2). This level of reporting is crucial. It ensures that the authorized $150 million isn't just paying for degrees, but is actually translating into more professionals working in schools, which is the whole point.