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Mental Health Grant Funding Guide

New opportunities for mental health programs

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Addressing the Youth Mental Health Crisis

The pandemic may not have caused the rapid rise in rates of depression, anxiety, and suicidal ideation among school-age children and teens, but it did shine a light on the mental health crisis. Increased awareness has caused schools to take action by providing more support for students and staff.

COVID-19 relief funds that helped schools hire more mental health professionals are set to expire in 2024. Fortunately, other funding sources are available. The Bipartisan Safer Communities Act will invest $1 billion over the next five years in mental health supports in our schools. Designed to reduce violence and double the number of school counselors, social workers, and other mental health professionals, the legislation includes significant investment in children and family mental health services.

Grants to expand mental health services in schools*

The Mental Health Service Professional (MHSP) Demonstration Grant Program:

  • Support a strong pipeline into the mental health profession, including innovative partnerships to prepare qualified school-based mental health service providers for employment in schools.

School-Based Mental Health (SBMH) Services Grant Program.

  • For states and school districts to increase the number of qualified mental health services providers delivering school-based mental health services to students in local educational agencies with demonstrated need.

Fostering Trauma-Informed Services in Schools.

  • Education activities designed to help students access evidence-based and culturally relevant trauma support services and mental health care. Create partnerships that link school systems with local trauma-informed support and mental health systems to provide services to students in need.

Expanding Mental Health Services Through Full-Service Community Schools.

  • Community schools to offer a range of wraparound supports for students and their families—including health, nutrition, and mental health services.
  • Provide integrated student services, which can include mental health services and support.

Responding to Childhood Trauma Associated with Community Violence.

  • U.S. Department of Education’s Project Prevent helps school districts increase their capacity to implement community and school-based strategies to mitigate community violence and its impact on students.
  • Experiencing or witnessing violence in the community is an adverse childhood experience linked to chronic health issues, including mental health.
  • Project Prevent seeks to build a bridge between schools and community-based organizations to provide students with the tools to break cycles of generational violence and trauma, including mental health services and support.

Improving Conditions for Student Learning.

  • Funding through Title IV-A to support a variety of activities to improve conditions for student learning through evidence-based practices to promote positive school climates.

Governors are encouraged to invest more in school-based mental health services

  • Federal resources are available to states and schools to invest in mental health services for students, improve health care delivery in schools, and ensure children enrolled in Medicaid have access to comprehensive health care services, as required by law.
  • States can leverage Medicaid funding to deliver critical mental health care services to more students, including ways to make billing Medicaid for these services more accessible.

Snapshot of other grants supporting schools and communities

School districts often lack the resources needed to support student mental health and will benefit from working with community partners, especially if they aren’t able to access grant funding.

Knowing that the Bipartisan Safer Communities Act (BSCA) includes an additional $1.7 billion for mental health funding and technical assistance for community providers may be an incentive for schools to partner with them. BSCA funds target these objectives:

  • Community-Based Behavioral Health Services
  • Enhancing Delivery of School-Based Mental Health
  • Improving Oversight of Medicaid’s Early and Periodic Screening, Diagnostic and Treatment Benefit
  • Increasing Access to Children’s Mental Health Services
  • Expanding Training for Pediatric Providers
  • Supporting Community and First Responders Mental Health Training
  • Building Awareness of and Access to Mental Health Services
  • Providing Support after Traumatic Events
  • Enhancing the 9-8-8 Suicide and Crisis Lifeline
  • Expanding Access to Out of School Programs

For a detailed descriptions of community programs listed, see the *U.S. Department of Education Press Release: Fact Sheet: Biden-Harris Administration Announces Two New Actions to Address Youth Mental Health Crisis

Project AWARE

State educational agencies run Project AWARE (Advancing Wellness and Resiliency in Education) with funding from SAMHSA, the Substance Abuse and Mental Health Services Administration.

An excellent resource for schools, the program is designed to increase mental health awareness in schools across states, territories, and tribal communities. Project AWARE also provides training for school personnel to detect and respond to mental health challenges and connects school-aged youth and their families to needed services.

Because building collaborative partnerships is an important component of the program, it may provide school districts with opportunities to connect with a wide range of community partners.

How to apply for federal grants—step by step

Most federal grant funds for schools flow through state education agencies. Schools and districts must follow the state’s application process to apply for funds. In most districts, designated employees have access to the grants management platform and are responsible for submitting applications. They will work with other departments to write and prepare grant applications.

Step 1

Before applying, learn about your district’s procedures for competitive grants. School districts often require approval from leadership — either the board of education or the superintendent — before the application can be submitted.

Step 2

Chances are, applications for mental health grants will be requested by student services directors, the folks responsible for overseeing counselors and social workers, or other administrators who may not have experience writing grants. Therefore, working on the application as partners with the grant writer is important.

Don’t be intimidated by thinking it will be too hard to complete the application or the accountability requirements at the end of the funding period are too complicated or time-consuming.

Once the grant application is completed, the accountability portion or completion report is basically a checklist that shows the school district spent the funds the way they planned to. If changes were made, an explanation might be required, but it is not a difficult task.

Step 3

Writing a competitive grant application can seem overwhelming. Begin by making sure the requirements are clearly understood. Education grants are often awarded based on criteria such as poverty measures and data that supports the need for the specific funds available. To see examples, review the funding priorities for the Bipartisan Safer Communities Act.

Step 4

Once it’s determined that a district meets requirements, the most important advice is simply to follow instructions carefully. Use terminology found within the application and provide specific examples and data to support your funding request.

Step 5

Ask for help! The California Department of Education provides a comprehensive guide to writing effective proposals: Guidance for preparing applications for funds. TEA, the Texas Education Agency, lists detailed information on how to apply for all grants , including guidelines for grant writers. Your state may offer additional resources to help with writing competitive grants. For further assistance, contact your state education agency or your district’s finance department.

Medicaid reimbursement may be the key to increasing funds for schools

In addition to applying for grant funding, schools are encouraged to claim Medicaid reimbursement. Health services provided by school mental health professionals to students enrolled in Medicaid are eligible in many states.

Not all states allow the option to claim Medicaid reimbursement for mental health services, and less than half seek reimbursement for eligible students. Numbers are even lower in rural areas because those districts lack the staff to handle complicated paperwork. That’s why state governors are encouraged to address making Medicaid funds more accessible to schools.

Since about 40% of students are currently eligible for Medicaid or Children’s Health Insurance Program (CHIP), it can provide a substantial revenue stream for school systems. For those worried about federal funding ending after grants expire, Medicaid reimbursement could potentially help cover the cost of school-based mental health professionals in the future.

Centers for Medicare & Medicaid Services (CMS) is expected to issue an updated care policy and guidance to help more schools receive Medicaid funding for healthcare services provided by the schools. That includes mental health care. The plan also includes best practices and technical assistance for school districts.

Software solutions

Tools that help schools support student mental health are typically considered eligible expenses under federal grant guidelines.

A quality program like Frontline School Health Management Software is designed to track and document student health, including mental health. While nurses can manage all the record keeping for physical health through Frontline, mental health providers can use it to monitor students’ mental health and manage their records electronically.

Frontline’s Mental Health & Behavioral Management has proven to be invaluable in helping schools cope with the ongoing youth mental health crisis. School-based mental health professionals have access to students’ histories, allowing them to identify patterns early and address issues before they escalate. Counselors can flag patterns of risky behavior like bullying, suicidal ideation, or peer conflict for early intervention.

Data listing the number of times counselors meet with students can indicate which students might need additional support. If a counselor has concerns about the health or safety of a child or if a student is in crisis, having a complete mental health history available at their fingertips can save lives.

Frontline Billing & Service Management software adds a tool for generating revenue with an integrated Medicaid reimbursement process. Any eligible mental health service provided to a student enrolled in Medicaid is automatically tracked every time a service provider documents a student interaction. It is integrated into the streamlined claim and reimbursement process, making it much easier and less time-consuming to file claims.

By making student records easily accessible to counselors and simplifying Medicaid billing, Frontline School Health Management, along with Medicaid & Service Management, are valuable tools for school professionals facing the mental health crisis affecting their students today.

Securely monitor, report, and support students’ physical, mental, and behavioral health in one place.

See it in action