California officials warn that losing federal mental health grants could threaten school counselors, psychologists, and services that tens of thousands of students rely on every year.
A growing number of California students are struggling with anxiety, depression, stress, and feelings of hopelessness. For many families, the first place children receive help is not a doctor’s office or a therapist’s clinic. It is school.
Now, California is fighting in court to protect federal funding that helps schools hire counselors, psychologists, social workers, and other mental health professionals.
California Attorney General Rob Bonta has joined a coalition of 15 states challenging efforts by the U.S. Department of Education to end federal grants that support school-based mental health programs. State officials say nearly $200 million in funding across California could be at risk.
For students and families already facing long waits for mental health services, the outcome could have significant consequences.
Why This Matters in California
Student mental health needs have reached alarming levels.
Research from the University of California, Los Angeles and the Public Policy Institute of California shows that approximately three in ten California youth ages 12 to 17 meet the criteria for serious psychological distress.
Roughly one-third of California students report persistent feelings of sadness or hopelessness, and about one in six high school students has seriously considered suicide.
These findings matter because schools have increasingly become one of the largest providers of youth mental health services.
For many children, especially those from lower-income families or communities with limited healthcare access, school may be the only place where mental health support is available.
What’s at Risk?
The federal grants support two major programs:
- Mental Health Service Professional Demonstration Program
- School-Based Mental Health Services Program
These programs help school districts recruit, train, and retain:
- School psychologists
- Social workers
- Counselors
- Mental health specialists
Without the funding, districts could struggle to maintain staffing levels and student services that expanded dramatically in recent years.
Los Angeles Has Built One of the Nation’s Largest School Mental Health Networks
The need is particularly visible in Los Angeles.
The Los Angeles Unified School District operates 17 campus wellness centers and three school-based health centers. Together, they served nearly 55,000 patients during the 2023-24 school year.
Los Angeles County has also invested heavily in virtual mental health services. County leaders partnered on a $24 million telehealth initiative designed to provide free mental health services to students in nearly 80 school districts, potentially reaching approximately 1.3 million young people.
The size of these programs reflects a larger reality.
Student mental health needs have outpaced the capacity of traditional healthcare systems, forcing schools to become critical access points for care.
School Mental Health Services Are Linked to Better Attendance
Mental health services do more than address emotional well-being.
Research from The Los Angeles Trust for Children’s Health found that students who receive school-based mental health services attend school an average of seven additional days each year.
Attendance matters because students who regularly miss school face higher risks of falling behind academically, disengaging from school, and experiencing long-term educational challenges.
In many cases, mental health support is also an educational support.
California’s Investment Has Grown Rapidly
Between the 2018-19 and 2023-24 school years, California school district spending on student health and mental health services increased by approximately 75 percent, rising from $934 million to $1.64 billion.
Most of that funding was used to hire personnel who work directly with students.
But maintaining these services is becoming increasingly difficult.
The Growing Challenges Ahead
The Funding Cliff
Many school districts used temporary pandemic relief dollars to expand counseling and mental health programs.
Those emergency funds have largely expired.
District leaders now face difficult decisions about how to sustain services that families increasingly rely on.
Billing and Administrative Delays
California launched large initiatives such as the Children and Youth Behavioral Health Initiative to transform youth behavioral health services.
However, delays in reimbursement systems have left some districts struggling to recover funds needed to maintain staffing.
Workforce Shortages
Even with historic investments, demand continues to exceed supply.
Many schools still face shortages of counselors, psychologists, and social workers. High caseloads and recruitment challenges continue to strain the system.
Why This Matters for Families
Who is affected?
- Students experiencing anxiety, depression, trauma, or stress
- Parents seeking mental health support for their children
- Schools trying to maintain counseling services
- Communities with limited access to behavioral healthcare
Why should families care?
School-based mental health services are often the most accessible and affordable form of care available to children.
What could happen next?
If funding is reduced, some districts may struggle to retain staff and maintain programs that thousands of students currently use.
California’s lawsuit seeks to preserve federal funding while the legal challenge moves through the courts.
The case arrives at a pivotal moment.
Student mental health needs remain elevated years after the pandemic, and schools have become an essential part of California’s behavioral health safety net.
For Los Angeles families and communities across the state, the lawsuit is about more than budgets and federal grants.
It is about whether schools can continue serving as places where students not only learn, but also receive the emotional support many need to succeed.
