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Creates a federal grant program to pay eligible school psychology students and trainees up to $8,000 per year (subject to appropriations) in exchange for a service obligation: four years as a full‑time school psychologist in a qualifying Title I elementary or secondary school with a high student-to-psychologist ratio. Grants are limited to a lifetime cap of $16,000 for undergraduate/post‑baccalaureate support and $16,000 for graduate support; failure to complete the service obligation converts the award into a Federal Direct Unsubsidized Stafford Loan with interest. The program requires institutions and recipients to apply, meet eligibility standards, submit annual certifications, and follow procedures for reconsideration, reporting, and program oversight; funding begins January 1 of the year after enactment and is authorized at “such sums as may be necessary.”
The bill offers targeted financial support and protections to grow the school psychologist workforce and expand student access to mental health services in high-need schools, but it creates funding uncertainty, enforceable service obligations, and possible debt or cash‑flow constraints that could deter participation or reduce flexibility for trainees.
Students training to become school psychologists receive up to $8,000 per year (maximum $16,000 total), lowering out-of-pocket education costs while they complete credentialing.
High-need local education agencies (LEAs) gain new school psychologist hires because recipients must serve four years in covered schools, helping alleviate local shortages.
Students in Title I–eligible and other prioritized districts gain increased access to school-based mental health supports through placement priorities (e.g., target ratios under 1:500).
Program funding is authorized as “such sums as may be necessary,” creating uncertainty about actual grant availability for prospective trainees and institutions.
Recipients who fail to complete the service obligation risk having their grant converted into an unsubsidized Stafford Loan that accrues interest from the original grant date, increasing borrower debt.
The four‑year service requirement and documentation deadlines may deter applicants or constrain early-career psychologists’ geographic or employer mobility.
Introduced May 20, 2025 by Josh S. Gottheimer · Last progress May 20, 2025