School Mental Health Support Act.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 899

Short Title: School Mental Health Support Act. (Public)
Sponsors: Senators Smith and Murdock (Primary Sponsors).
Referred to: Rules and Operations of the Senate
April 30, 2026
*S899-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO APPROPRIAT E FUNDS FOR A SCHOOL MENTAL HEALTH GRANT 2
PROGRAM AND TO ESTAB LISH A MENTAL HEALTH WORKER LOAN 3
REPAYMENT PROGRAM. 4
The General Assembly of North Carolina enacts: 5
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PART I. SCHOOL MENTAL HEALTH GRANT PROGRAM 7
SECTION 1.(a) Article 25B of Chapter 115C of the General Statutes is amended by 8
adding a new section to read: 9
"§ 115C-376.6. Mental Health Grant Program. 10
(a) Definitions. – For purposes of this section, the term "mental health support personnel" 11
refers to any of the following: 12
(1) School counselors, school psychologists, and school social workers. 13
(2) Psychiatrists licensed in accordance with Article 1 of Chapter 90 of the 14
General Statutes. 15
(3) Psychologists, as defined in G.S. 90-270.136(6). 16
(4) Licensed psychological associates, as defined in G.S. 90-270.136(7). 17
(5) Licensed clinical mental health counselors, as defined in G.S. 90-330(a). 18
(6) Substance use disorder professionals, as defined in G.S. 90-113.31A(26). 19
(7) Social workers engaged in clinical so cial work practice , as defined in 20
G.S. 90B-3(6). 21
(b) Program; Purpose. – The Department of Public Instruction shall establish the School 22
Mental Health Grant Program (Program). To the extent funds are made available for the Program, 23
its purpose is to increase student access to mental health support personnel in public school units. 24
(c) Applications. – The Department shall make grant applications available to public 25
school units pursuant to this section. The Department shall establish (i) deadlin es for receipt of 26
applications and the award of funds and (ii) any information to be included in the applications. 27
(d) Award of Funds. – The Department shall award funds to selected public school units 28
based on the need of the public school unit. In evalua ting the need of the unit, the Department 29
shall prioritize the award of funds to units with a greater proportion of students who have limited 30
or no access to mental health services, including students who do not have health insurance and 31
students with disabilities. 32
(e) Use of Funds. – A public school unit shall use funds received pursuant to the Program 33
to contract with mental health support personnel to provide mental health services in one or more 34
schools in the public school unit. 35
General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 899-First Edition
(f) Supplement Not Supp lant. – Grants provided to public school units pursuant to the 1
Program shall be used to supplement and not supplant funds from an y other source already 2
provided for mental health services in schools. 3
(g) Report. – No later than March 15 of each year in which funds are provided for the 4
Program, the Department shall report to the Joint Legislative Education Oversight Committee 5
and the Joint Legislative Oversight Committee on Health and Human Services at least the 6
following information: 7
(1) The public school units that received a grant through the Program. 8
(2) The amount of funding received by each public school unit. 9
(3) The services purchased with grant funds by each public school unit. 10
(4) Recommendations for the implementation of additional measures to improve 11
student mental health, especially among students with limited or no access to 12
mental health services." 13
SECTION 1.(b) There is appropriated from the General Fund to the Department of 14
Public Instruction for the 2025-2026 fiscal year the sum of fifty million dollars ($50,000,000) in 15
recurring funds to provide grants for school mental health services in public school units in 16
accordance with G.S. 115C-376.6, as enacted by this act. The De partment may use up to 17
seventy-five thousand dollars ($75,000) of these funds each year for administrative costs related 18
to the Program. 19
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PART II. MENTAL HEALTH WORKER LOAN REPAYMENT PROGRAM 21
SECTION 2.(a) Part 1 of Article 23 of Chapter 116 of the General Statutes is 22
amended by adding the following new section to read: 23
"§ 116-209.47. Mental Health Worker Loan Repayment Program. 24
(a) Definitions. – The following definitions shall apply in this section: 25
(1) Authority. – The State Education Assistance Authority. 26
(2) Eligible mental health worker. – A psychologist, psychiatrist, counselor, 27
social worker, or nurse who meets all of the following requirements: 28
a. Is employed full time in a high-need area in the State. 29
b. Graduated from a postsecondary const ituent institution of The 30
University of North Carolina. 31
c. Has student debt. 32
(3) High-need area. – A development tier one or tier two area, as defined in 33
G.S. 143B-437.08. 34
(4) Program. – The Mental Health Worker Loan Repayment Program. 35
(5) Student debt. – The total outstanding federal, State, and private student debt 36
held by an eligible mental health worker for his or her own education. 37
(b) Program; Purpose. – There is established the Mental Health Worker Loan Repayment 38
Program to be administered by the Authority. The purpose of the Program is to provide loan 39
repayment grants to eligible mental health workers to repay student debt held by the worker to 40
the extent funds are made available for this purpose. 41
(c) Eligibility. – The Authority shall establish the criteria for initial and continuing 42
eligibility to participate in the Program, as follows: 43
(1) All grant recipients shall be residents of North Carolina and be graduates of a 44
postsecondary constituent institution of The University of North Carolina. 45
(2) The Authority shall adopt standards deemed appropriate by the Authority to 46
ensure that only quali fied, potential recipients receive a grant under the 47
Program. 48
(3) To the extent funds provided pursuant to this section are insufficient to award 49
forgivable loans to all interested eligible mental health workers, the Authority 50
General Assembly Of North Carolina Session 2025
Senate Bill 899-First Edition Page 3
may establish a lottery proce ss for selection of grant recipients from among 1
qualified applicants within criteria established by this section. 2
(d) Award of Funds. – The Authority shall award funds to eligible mental health workers 3
in an amount of twenty percent (20%) of each eligible mental health worker's student debt as of 4
the date of his or her initial award. Funds shall be awarded no later than October 1 of each year, 5
and no award recipient shall receive an award of funds for more than five years. 6
(e) Rulemaking Authority. – The Au thority may adopt rules necessary to implement, 7
administer, market, and enforce the provisions of this section. 8
(f) Report to the General Assembly. – The Authority shall report no later than December 9
1, 202 5, and annually thereafter while grants are awarde d by the Authority, to the Joint 10
Legislative Education Oversight Committee regarding the Program and grants awarded pursuant 11
to the Program, including at least the following information: 12
(1) Grants awarded under the Program, including the following: 13
a. Demographic information for grant recipients. 14
b. Number of grant recipients by constituent institution of graduation, 15
field of employment, and high-need area. 16
(2) Recommendations to improve the Program and increase the number of 17
eligible mental health workers in high-need areas." 18
SECTION 2.(b) There is appropriated from the General Fund to the Board of 19
Governors of The University of North Carolina the sum of fifty million dollars ($50,000,000) in 20
recurring funds to be allocated to the State Education A ssistance Authority for the 2025 -2026 21
fiscal year to establish the Mental Health Worker Loan Repayment Program pursuant to 22
subsection (a) of this section. Of the recurring funds appropriated in this act for the Program, 23
beginning in the 2025 -2026 fiscal ye ar, the Authority may retain up to five hundred thousand 24
dollars ($500,000) each fiscal year to administer the Program. 25
SECTION 2.(c) This section becomes effective July 1, 2025, and applies to 26
applications for the disbursement of funds beginning in the 2025-2026 fiscal year. 27
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PART III. EFFECTIVE DATE 29
SECTION 3. Except as otherwise provided, this act becomes effective July 1, 2025. 30