Sponsors (3)
Official title: To amend the Public Health Service Act to direct the Assistant Secretary for Mental Health and Substance Use to establish a grant program for certain undergraduate or graduate students who agree to work as school psychologists, and for other purposes.
Introduced May 20, 2025 by Josh S. Gottheimer · Last progress May 20, 2025
The bill expands paid training and placements for school psychologists that reduce student costs and strengthen school mental health supports, while creating recurring federal costs, administrative burdens, and risks that some recipients will see reduced awards or have grants converted to loans if they don't meet obligations.
Students in eligible school psychology programs receive up to $8,000 per year while enrolled and have the awarded amounts treated like service-forgiveness (not loans) if they complete the service obligation, cutting out-of-pocket costs and reducing student debt for participants.
More funded school psychologists placed at high-need schools should lower student-to-psychologist ratios and strengthen school-based mental health supports, benefiting students and school communities.
Eligible institutions receive most requested funds up front and the program requires biennial reporting to Congress, improving grantee cash flow for administering awards and providing data for oversight and program assessment.
If a recipient fails to complete the required service obligation, the grant converts into a Stafford loan with interest charged from the award date, increasing debt and financial risk for those individuals.
Award amounts can be reduced for recipients who receive significant other financial aid or who enroll part-time (pro rata reductions), meaning many part-time or well-aided students may get substantially smaller benefits.
The program creates new recurring federal spending ('such sums as may be necessary'), which could add to federal budget pressures if the program is scaled up or maintained long-term.
Based on analysis of 2 sections of legislative text.
Creates a grant program to provide eligible school psychologist trainees $8,000 per year (subject to appropriations) for tuition, fees, and institution-owned room and board.
Creates a new federal grant program that pays eligible school psychologist students $8,000 per year while they remain eligible, with funds administered by the Assistant Secretary for Mental Health and Substance Use and subject to appropriations. Funds are intended to be paid primarily in advance to institutions (with at least 85% prepayment) and may be used only for tuition, fees, and institution-owned room and board; the Assistant Secretary must publish reduction schedules and other payment rules by regulation.