ASSIST Act Boosts Federal Match to 90% for School Mental Health Services, Funds New Provider Hires

The “Advancing Student Services In Schools Today Act,” or ASSIST Act, is stepping up to address the crisis in youth mental health by changing how the federal government funds behavioral health services in schools. This bill primarily works through two channels: increasing federal funding for state Medicaid spending on these services and creating a new grant program specifically for hiring more mental health providers in educational settings.

The 90% Federal Match: A Game Changer for State Budgets

Right now, states pay a portion of the cost for Medicaid services, and the federal government covers the rest via the Federal Medical Assistance Percentage (FMAP). Under Section 2 of the ASSIST Act, if a state spends money on mental health or substance use disorder services that are provided at a regular school or a school-based health center, the FMAP for that spending jumps to a massive 90 percent.

Think about what that means for state budgets. If a state currently pays 40 cents of every dollar for these services, the federal government pays 60 cents. Under this new rule, the state would only pay 10 cents, and the federal government would cover 90 cents. This is a huge financial incentive for states to expand these critical services. The bill smartly includes a provision ensuring that if a state already gets a better deal, they keep the higher rate, so no state loses money because of this change. This higher match kicks in 12 months after the bill becomes law, giving states time to adjust their budgets and programs.

Grant Program: Bringing the Experts to the Classroom

Section 3 establishes a new grant program run by the Department of Health and Human Services (HHS) aimed at getting more mental health and substance use disorder professionals directly into schools. Eligible groups—like local school districts, universities, and school-based health centers—can apply for funds to hire staff like school counselors, psychologists, social workers, and even addiction specialists.

If you’re a parent or a teacher, this means your school might finally be able to afford that extra counselor or social worker who can provide services during the school day, making it easier for students to get help without missing hours of class or requiring parents to take time off work. A key requirement for applicants is that they must detail how they will ensure the services are culturally sensitive and provided in the right languages for the students they serve. This is a necessary check to make sure the help provided is actually effective for diverse student populations.

The Fine Print: What the Money Can’t Do

While the goal is to increase access to care, the bill includes an important restriction: none of the money from this new grant program can be used to fund a “threat assessment team.” This is a clear signal that Congress intends for these specific dollars to go directly toward clinical care and behavioral health support, not school security or risk management programs. For the organizations receiving these grants, there’s also a strict annual reporting requirement to HHS, detailing exactly how many providers were hired and what kinds of services they are offering, keeping the program accountable for results.