Lack of funding and resources for mental health in schools: How to fix it

Key takeaways

• More than half of public schools struggle to meet student mental health needs because of funding shortages.
• Underfunding creates cascading effects: strained mental health professionals, lower academic performance, increased behavioral issues, and widening inequities for rural and low-income students.
• Schools can bridge gaps through telehealth partnerships, teacher training programs, federal and state grant applications, and community engagement initiatives.

When students struggle with their mental health, schools are often the first place they turn for support. Yet, according to Health Affairs Scholar, 52% of public schools can't provide mental health services to students who need them.

In 2022, the Bipartisan Safer Communities Act (BSCA) helped expand access to school-based mental health services by funding resources such as counselors, psychologists, and social workers. However, cuts to US Department of Education programs and the expiration of temporary pandemic relief funding now threaten many of those gains.

The lack of funding for mental health in schools affects far more than access to counseling services. It can influence students' academic performance, emotional well-being, and overall sense of safety and belonging. Administration and Policy in Mental Health and Mental Health Services Research suggests that schools are one of the most common places where young people receive mental health support, making these funding challenges especially concerning.

As resources shrink, schools may face overwhelmed providers, widening equity gaps, and growing unmet student needs. If your school or district is facing funding challenges, you're not without options. Understanding what's driving these shortages and exploring practical solutions can help you continue supporting students when they need it most.

Why is funding for school mental health so limited?

School mental health funding remains limited because demand for services continues to outpace available resources. Even though we have clear evidence that successful school-based mental health programs help students thrive, access remains limited and uneven.

The American School Counselor Association recommends a student-to-counselor ratio of 250-to-1. In many states, that ratio is more than double. In some cases, it’s more than 550-to-1. It’s impossible for one school psychologist to handle everything from daily stress to major crises across multiple campuses, but many are forced to try. In some districts, a single mental health professional is responsible for serving every student in the county.  

In the past, schools have used BSCA and other school mental health grants to fund initiatives for violence prevention, social-emotional learning (SEL) programs, anti-bullying strategies, and to improve overall school climate. For example, New Jersey’s East Orange School District recently partnered with Montclair State University. Together, they used a Mental Health Service Professional (MHSP) Demonstration Grant to train school-based mental health providers and expand professional development.

In Michigan, Elkton-Pigeon-Bay Port Laker Schools used funds from the Stronger Connections Grant Program (via the BSCA) to implement the district-wide Lion Heart Experience. Their efforts focus on student resilience and self-worth and support school culture, staff training, and students with mental health needs. 

However, according to 2025 data from the National Center for Education Statistics (NCES), 56% of public schools cited inadequate funding as a factor limiting their ability to effectively provide mental health services.

How does underfunding affect students and staff?

A lack of funding for mental health in schools has devastating consequences. It affects nearly every aspect of student well-being and school operations. There's the increased strain on mental health providers, academic and behavioral fallout, and growing inequities among low-income and rural student populations. The impact shows up everywhere, from counseling offices to classrooms, with high percentages of students being affected.

Strain on school counselors and psychologists

A growing number of districts have counselor-to-student ratios that are far above recommended levels. School-based mental health professionals are increasingly overextended and experiencing burnout as they work to meet students’ individual needs. As urgent safety concerns demand immediate attention, long-term wellness initiatives are often deprioritized.

Academic and behavioral fallout

Poor student mental health is linked to lower academic performance and reduced attendance rates, as per research in the International Journal of Methods in Psychiatric Research and the Australian Journal of Education, respectively. It results in an uptick in disciplinary issues and an increased risk of dropout. Students with access to mental health services, however, are less likely to miss school, perform poorly, or face disciplinary action. Additionally, CDC research suggests that students who don’t have access to mental health resources are twice as likely to feel persistently sad and hopeless, key risk factors for self-harm and disengagement in school. 

Widening inequities

Reduced mental health funding in schools disproportionately affects some communities more than others. Students in rural or low-income districts, for example, typically have far fewer resources than those in wealthier, more suburban areas. It appears that the schools with the greatest needs have the least support.

The Education Trust found that Black, Latino, and low-income public school districts are less likely to have full-time counselors or psychologists on campus, with less bandwidth to provide mental health support. Students in this demographic also face other barriers, including a lack of access to college counseling and insufficient mental health support, as per the National Association for College Admission Counseling and research in Discover Mental Health.

Which policies and grants can help close the gap?

Federal grants, state programs, and local initiatives can help schools expand access to mental health services. Despite the financial challenges many schools are facing, momentum continues to build around providing students with access to mental healthcare. Some districts have even launched independent initiatives, providing resources for peer support programs, trauma-informed faculty and staff training, after-school counseling, and other mental health services. Today’s decision-makers must allocate resources with greater creativity, a task made even more critical as temporary funding grants near expiration and federal program cuts loom.

What immediate steps can schools and communities take?

Even when budgets are tight, schools and communities can take steps to strengthen mental health support for students. Prioritizing access to mental healthcare benefits students, educators, and school communities alike.

Partnering with telehealth providers

Telehealth can be a lifeline for students in need, especially for schools in rural areas or when in-person counselors aren't available. There are several benefits to telehealth mental healthcare, including reduced wait times for care, tailored support for specific demographics, and a way to reduce stigma.

One study by MIT even found that schools utilizing telehealth for mental health support saw a 29% reduction in absenteeism. Platforms like Talkspace can offer accessible, secure, affordable therapy for both students and school staff.

Training teachers to identify early signs of distress

Teachers are often the first ones to notice if a student is starting to withdraw or seems overwhelmed. Offering basic mental health training empowers faculty and staff to recognize red flags early on. It also ensures they know how to effectively use empathy before discipline. 

To help teachers identify early signs of distress, schools can offer:

• Training and workshops on trauma-informed teaching
• Referral pathways to ensure students have easy access to counseling services
• Workshops that provide scripts for critical first conversations
• Universal screening tools and training, so teachers can learn to identify and respond to concerning trends
• Collaborative environments that include mental health teams, counselors, school nurses, administration, and social workers
• Resource guides that share what services are available and how to access them
• Peer support networks for educators and school staff who need help processing difficult situations relating to student mental health topics

"Teachers can check-in with students and make it a regular part of class. Teachers can ask students to rate mood or have a fill in the blank about how they are doing for all students. This normalizes the check-in. Then teachers can circle back to those students that need more of a conversation or other resources."

- Laura Magnuson, MA, MS, LAMFT, VP of Clinical Engagement

Applying for available federal or state mental health grants

Even if federal funding dries up, that doesn’t mean you shouldn’t seek other available resources for mental health services. There are organizations outside of federal programs, like the Substance Abuse and Mental Health Services Administration (SAMHSA), state agencies, and private foundations, that offer grants to expand mental health services in schools.

Designate a staff member or create a committee to research opportunities and track upcoming deadlines when there’s a lack of funding for mental health in schools. Work with local community partners who are dedicated to promoting student well-being and willing to share grant writing responsibilities or explore new opportunities. 

Steps you can take to secure funding right now:

• Sign up for email updates and alerts from SAMHSA
• Check your state’s Department of Education website
• Build and nurture relationships with community mental health nonprofits
• Document specific needs and desired outcomes (Tip: Using concrete data, like absenteeism and discipline incident rates, can strengthen your cause)

Engaging parents and communities in mental health advocacy

Parents and other community members can be powerful allies for schools seeking mental health funding and support. Host mental health awareness nights or launch a parent advisory group to get started. Use your school's communication channels to keep invested partners and parents up to date on the initiatives you're working on.

Is Talkspace a scalable solution for resource-strapped schools?

Telehealth can help schools expand access to support without requiring major staffing increases. The lack of resources for mental health in schools is a complex challenge, but there are practical ways to close the gap. Telehealth partnerships, community collaboration, and targeted funding efforts can help schools reach more students and staff.

Talkspace provides flexible, evidence-based mental healthcare that can support both students and educators. Through online therapy for students, schools can increase access to care, reduce wait times, and extend support beyond traditional school hours. If you're ready to explore a scalable solution, book a demo to learn how Talkspace can help make mental healthcare more accessible and affordable for your school community.

Frequently asked questions (FAQs)

What are the main causes of the lack of resources for mental health in schools?

The primary causes include insufficient federal and state funding, expiration of pandemic relief measures, cuts to Department of Education programs, and inadequate student-to-counselor ratios. Many schools also face challenges accessing or securing grants, while rural and low-income districts experience disproportionate resource gaps compared to wealthier areas.

Can technology help reduce the lack of resources for mental health in schools?

Yes. Telehealth platforms can provide accessible mental health support, especially in rural areas or when in-person counselors are unavailable. Virtual mental health services can improve access, reduce barriers to care, and support better student outcomes.

What strategies can help address the lack of resources for mental health in schools?

Schools can leverage partnerships with community mental health organizations and telehealth services to expand support without overextending staff. Additionally, implementing tiered mental health programs and preventive wellness initiatives can maximize impact while prioritizing urgent student needs.

What role does staffing play in the lack of resources for mental health in schools?

Staffing is central: insufficient numbers of trained mental health professionals mean students often go without timely, individualized support. Overextended staff must prioritize urgent crises over preventive care, limiting the school’s ability to provide comprehensive mental health services.

How can parents help address the lack of resources for mental health in schools?

Parents can serve as powerful advocates for mental health by participating in mental health awareness events, joining parent advisory groups, and staying informed about school initiatives. Community members can also partner with schools to share grant-writing responsibilities and support student well-being programs.

Sources

1. Brown C, Carrington NK. Increasing access to school-based mental health services for youth subsequent to the COVID-19 pandemic. Health Affairs Scholar. https://pmc.ncbi.nlm.nih.gov/articles/PMC12013806/. 2025 Apr 5;3(4):qxaf073. Accessed June 11, 2026.
2. National Education Association. Bipartisan Safer Communities Act. National Education Association. https://www.nea.org/resource-library/bipartisan-safer-communities-act. 2024 Mar 25. Accessed June 11, 2026.
3. Duong MT, Bruns EJ, Lee K, Cox S, Coifman J, Mayworm A, Lyon AR. Rates of mental health service utilization by youth and adolescents in schools and other common service settings: a systematic review and meta-analysis. Administration and Policy in Mental Health and Mental Health Services Research. https://pubmed.ncbi.nlm.nih.gov/32940884/. 2021 May;48(3):420-439. Accessed June 11, 2026.
4. American School Counselor Association. Student-to-school counselor ratios 2024–2025. American School Counselor Association. https://www.schoolcounselor.org/getmedia/efe644ea-e26c-4531-82e9-ddbab422227a/24-25-Ratios.pdf. Accessed June 11, 2026.
5. Garfield Jackson Academy. East Orange School District partners with Montclair State University to enhance mental health services through $3.55 million federal grant. Garfield Jackson Academy. https://jackson.eastorange.k12.nj.us/apps/news/article/2000838. 2024 Nov 19. Accessed June 11, 2026.
6. National Center for Education Statistics. School Pulse Panel: interactive results. National Center for Education Statistics, Institute of Education Sciences, U.S. Department of Education. https://nces.ed.gov/surveys/spp/results.asp. Accessed June 11, 2026.
7. Chu T, Liu X, Takayanagi S, Matsushita T, Kishimoto H. Association between mental health and academic performance among university undergraduates: the interacting role of lifestyle behaviors. International Journal of Methods in Psychiatric Research. https://pubmed.ncbi.nlm.nih.gov/36054268/. 2023 Mar;32(1):e1938. Accessed June 11, 2026.
8. Reavley NJ, Jorm AF. Prevention and early intervention to improve mental health in higher education students: a review. Australian Journal of Education. https://journals.sagepub.com/doi/abs/10.1177/0004944118823576. 2019 Apr;63(1):57-70. Accessed June 11, 2026.
9. Centers for Disease Control and Prevention. Mental health. Centers for Disease Control and Prevention. https://www.cdc.gov/healthy-youth/mental-health/index.html. 2025 May 15. Accessed June 11, 2026.
10. Hurley S, Allen B, McConnell A. College counseling for Latino and underrepresented students. National Association for College Admission Counseling. https://nacacnet.org/wp-content/uploads/2022/10/COLLEGE-COUNSELING-FOR-LATINO-AND-UNDERREPRESENTED-STUDENTS.pdf. 2015. Accessed June 11, 2026.
11. The Education Trust. School counselors matter. The Education Trust. https://edtrust.org/rti/school-counselors-matter/. 2024 Sep 18. Accessed June 11, 2026.
12. Daskalska L, Nelson D, Smith J, Young S. Access to mental health care for Black and Latino teens with anxiety and depression: a qualitative study. Discover Mental Health. https://pmc.ncbi.nlm.nih.gov/articles/PMC12022193/. 2025 Apr 24;5(1):61. Accessed June 11, 2026.
13. Pudney S, Zweifel N, Walsh R. School-based health care and absenteeism: evidence from New York City. MIT - Education Finance and Policy. https://direct.mit.edu/edfp/article-abstract/19/2/252/114610/School-Based-Health-Care-and-Absenteeism-Evidence. 2024 Spring;19(2):252-280. Accessed June 11, 2026.