With student anxiety and depression on the rise, California lawmakers push for emergency funding to sustain care.
As California students continue to face rising rates of anxiety, depression, and trauma, critical school-based mental health programs are at risk due to delays in Medi-Cal reimbursements and broader cuts to Medicaid services. This funding shortfall threatens support for more than 5 million children who rely on Medi-Cal and the Children’s Health Insurance Program, especially those in foster care and low-income households.
In response to the youth mental health crisis, California launched the Children and Youth Behavioral Health Initiative in 2021, a $4.7 billion investment meant to transform mental health care for students. A key component allowed K-12 schools and colleges to bill Medi-Cal and private insurers directly for on-campus behavioral health services. However, this innovative approach has faltered in implementation. Despite nearly 500 school districts enrolling in the billing program, only 14 have successfully begun submitting claims. Many others face bureaucratic delays, lack of training, and technical barriers — leaving schools financially stranded.
For example, Fresno and Santa Clara County Offices of Education both hired dozens of new mental health staff in anticipation of reimbursements that never arrived. Fresno had over half its initial claims denied, and Santa Clara was forced to lay off 27 newly hired staff due to the lack of funding. Across California, districts are warning that if reimbursements don’t come soon, students will lose access to counseling, therapy, and support services at a time they need them most.
The loss goes beyond mental health care. Medi-Cal also funds services for students with disabilities — including equipment, specialists, and transportation — and helps sustain school-based health centers that serve entire families. Any reduction in Medi-Cal funding or delayed reimbursements could significantly erode this safety net.
This is where Senate Bill 531 comes in. The legislation aims to provide bridge funding to help schools maintain and expand their mental health programs while the state’s billing infrastructure catches up. While the exact amount is still under negotiation, lawmakers are pushing for immediate relief to prevent layoffs and service disruptions.
“Medi-Cal services are often the only care available to many of our students,” said Michele Cantwell-Copher, Fresno County’s superintendent of schools. “Without them, we are rolling back essential support for student wellness, safety, and success.”
SB 531 could be the stopgap schools desperately need — preserving critical mental health care access for California’s most vulnerable children until systemic reforms are fully operational.
