Behavioral Health Business December 16, 2025
Ashleigh Hollowell

The U.S. Department of Education has confirmed $208 million in new grant awards for school-based mental health programs, $120 million of which will specifically go to rural school districts.

The funds will be distributed across 65 recipients – 33 rural school districts and 32 metropolitan districts – and aim to boost the headcount of credentialed mental health providers, which has decreased since 2021, according to KFF data.

Earlier this year, the Department of Education rescinded $1 billion, halting the renewal of more than 200 school mental health grants due to discrepancies identified by the Trump administration regarding diversity, equity and inclusion initiatives.

While $208 million is a drop in the bucket compared to the $1 billion cut, Department of Education...

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