Mental Health Programs Face Sharp Hit as Texas Schools Lose $600M in Federal Funding

With Texas schools confronting a minimum of $600 million in reductions from federal financial support, several mental health initiatives—especially those launched following the pandemic and school shootings—are threatened with loss of resources.

School initiatives aimed at addressing long-term absence rates, promoting mental health, and providing emergency support, which emerged following the Uvalde school tragedy, along with social workers and therapists, might all face elimination.

Texas schools depend significantly on federal financial assistance to maintain mental health initiatives. Statistics indicate that two federal programs which are at risk of being cut or strictly regulated make up 86% of the school mental health budget across over 2,500 schools throughout the state, as reported by Mental Health America of Greater Houston.

Preparing as well for the approaching end of COVID-19 assistance funds, during this legislative cycle, school districts and advocacy organizations have advocated for additional resources via a specific funding stream for student mental health services, yet legislators declined to support it.

At present, this type of funding is included alongside school safety measures within what is known as the school safety allocation in the state's educational financing structure, and school districts usually focus their resources on school security through this allocation.

"I don't want to find myself in a position where I have to decide between hiring a police officer or a counselor. I want both," stated Adrian Johnson, the superintendent of the Hearne school district near College Station.

The reduction in financial support and slow advancement toward establishing a state-wide consistent funding source for mental health occurs during a period when student mental health is worsening g. A special legislative session begins on July 21, although Governor Greg Abbott has yet to include school mental health as an instruction for legislators.

The funding crisis

Responding to Uvalde, the federal Bipartisan Safer Communities Act supports funding for two grant initiatives in Texas, the Center for Student Support Services in Texas Student Assistance Hub of Texas Texas Resource Center for Academic Support Academic Support Network in Texas Texas Office of Educational Advocacy Educational Resources Center in Texas Support Systems for Students in Texas Texas Learning Support Initiative Student Success Programs in Texas Academic Guidance Center in Texas and the Stronger Connections Grant Program The first initiative provides mental health training and assistance in 60 areas with significant needs, while the second supports 98 public school districts by offering case management tools designed to spot at-risk students, along with access to mental health professionals.

Nearly three years after its implementation, the Safer Communities Act is facing losses exceeding $1 billion throughout the nation. Money intended to remain available until 2027 is projected to run out by the end of this year.

This version includes programs such Texas AWARE which provides evidence-backed mental health support within three Central Texas school districts, putting them at risk. The state focused on these school districts due to their increased effects from the pandemic and significant population increases.

A reduction in support for the Bipartisan Safer Communities Act is part of several suggested modifications to federal financing for public schooling, which will affect approaches to mental health within educational institutions.

As per an examination conducted by the Learning Policy Institute The suspension of five additional federal initiatives that aid public schools is anticipated to lead to the loss of about $600 million from Texas, exceeding 16.1% of the state's federal K-12 financial assistance. This money has supported numerous services including English language teaching and reading development, along with extracurricular activities and summer sessions aimed at promoting psychological well-being.

Medicaid and CHIP are also experiencing reductions in the federal funding bill approved earlier this month, and both offer millions of dollars every year to school districts and regional mental health agencies, allowing them to recruit and keep mental health professionals, conduct early intervention mental health assessments, and assist students with special needs through tailored programs.

In addition, funding related to COVID-19 is scheduled to end this year. or already ran out , causing certain smaller institutions to cut employees or seek different methods to retain social workers and counselors throughout the pandemic.

These reductions occur because Texas legislators failed to adequately finance school mental health services this year.

During the legislative session that concluded in June, Texas legislators reached an agreement on a strong school funding bill this contributes an additional $8.5 billion to the state's public education system. however, the majority of this funding is designated for educator salaries; approximately $250 million is allocated for school support personnel, with mental health professionals potentially excluded from the salary increase.

Over 70% of the educational institutions More than seventy percent of the academic establishments Beyond 70% of the learning centers Seventy percent or more of the institutes In excess of 70% of the campuses Over 70% of the instructional facilities More than three-quarters of the schools Above 70% of the education providers Over 70% of the training institutions More than two-thirds of the academies reported according to a survey conducted across 2,690 schools, sustainable financial support for school-based mental health professionals and certified school counselors was identified as the primary challenge in ensuring sufficient resources to meet students' mental health requirements. Greater Houston Mental Health America .

We remain optimistic that this could lead to increased financial support for mental health services," said Rebecca Fowler, who serves as the director of public policy and government relations at Mental Health America of Greater Houston, regarding the recent educational financing developments. "However, with no current laws specifically allocating these funds, we cannot be certain.

In 2023, 36 health and fitness groups from Texas sent a message to the Texas Legislature, advocating for the establishment and financial support of a distinct "student mental health allocation" as current initiatives failed to assist sufficient numbers of students.

Just 13% of schools allocated funds from the school safety budget toward mental health services, as reported by the Report from Mental Health America of Greater Houston

House Bill 1257 by Rep. John Bryant D-Dallas tried to obtain specific funding for mental health services, but it was not approved this year.

"Confusion regarding various sources of funding complicates discussions about the future of youth mental health," stated Kate Murphy, director of child protection policy at Texans Care for Children.

Changing conversations

Following the tragic school shootings in Uvalde and Santa Fe, legislators initially focused more on mental health, but this emphasis has decreased over recent years. Advocates for mental health have attributed this shift to the ongoing political conflict within the Capitol, where some officials claim that school-based mental health initiatives are labeling students and promoting LGBTQ+ identities without involving parents.

For example, Senate Bill 400 by Sen. Lois Kolkhorst R-Brenham would have mandated that parental permission be obtained for any psychological or psychiatric evaluation, assessment, or care provided to a student by a school staff member. The legislation was supported by eight senators, and even though it failed in the more traditionally minded Texas House, it reflects a change in how lawmakers are discussing school-based mental health services.

"I don't believe there's a consistent view on the role of mental health services in public schools. Who needs to offer assistance? At what point should help be provided?" Seth Winick, director of the Texas Alliance for Mental Health Texas Group for Psychological Well-being Texas Organization for Emotional Wellness Texas Network for Mindful Living Texas Center for Cognitive Health Texas Consortium for Mental Fitness Texas Association for Psychiatric Care Texas Initiative for Brain Health Texas Forum on Emotional Stability Texas Collective for Mental Resilience , said.

The superintendent of Hearne, Johnson, stated that he recognizes the worries of parents but emphasized that schools offer the most suitable environment for tackling mental health challenges faced by Texas families lacking financial resources or availability to arrange therapy sessions. He mentioned that until an improved alternative is introduced, the mental health requirements within schools should receive backing.

"We have students from preschool up to 12th grade enrolled in the school system for over 180 days each year, and we must make the most of this time by providing not just a solid academic base but also a robust mental well-being foundation," he stated.

Where is the future headed?

With the absence of federal financial assistance, school districts will need to think outside the box when tackling mental health issues inside their schools.

Johnson mentioned that his school district is concentrating on collaborations not just with nearby mental health organizations and healthcare agencies, but also with additional school districts. He noted that his district exchanges personnel and reduces expenses through participation in a special education partnership with four other districts, which could serve as an example for other areas across the state.

We serve 700 students, a nearby district could have 600, and another one might only have 150; we must collaborate to reduce expenses amid these financial reductions.

Collaboration is essential, Johnson stated, yet even this remains vulnerable due to present financial limitations. Some schools find it difficult to grow alliances with initiatives such as Communities In Schools which actively engages with pupils to offer psychological assistance and tackle persistent absence rates.

CIS is presently supporting two schools within our district, yet we would certainly extend CIS services to cover all our campuses if we received a state-funded allocation that could assist the district in providing the necessary matching funds for collaboration with CIS," stated Chris Smith, the superintendent of the Brownfield school district in West Texas. "We simply lack the current financial resources.

Rural and smaller schools are also experiencing cuts to social workers and psychologists who were employed during the pandemic, as well as the removal of initiatives aimed at keeping educators by offering salary increases.

"This year, we're implementing a budget that likely includes a $2 million shortfall. We remain committed to ensuring access to mental health support, and fortunately, we've managed to continue offering these services through collaborations. However, the current economic situation has made things challenging, and schools are finding it difficult to handle rising expenses," Smith stated.

The ongoing cycle of neglecting mental health until a crisis occurs is not viable, as education supporters argue that it's high time to allocate resources specifically for student mental well-being.

"I want funding comparable to what was mentioned regarding police officers. Every school needs a police officer, but this comes with annual expenses, and they offer support. We ought to do the same for social workers and psychologists," Johnson stated.

This piece was first published in The Texas Tribune at https://www.texastribune.org/2025/07/14/texas-schools-budget-cuts-mental-health/ .

This piece first was published in the Corpus Christi Caller Times: Texas school mental health initiatives may face significant reductions due to a $600 million federal funding cut.