Federal grants aim to fill school psychologist shortage in under-resourced schools

What it does

This bill creates a federal grant program offering $8,000 per year (up to $16,000 total) to undergraduate and graduate students pursuing school psychology degrees, provided they commit to working as full-time school psychologists in under-resourced public schools (those with fewer than 1 school psychologist per 500 students) for at least 4 years within 8 years of graduation. If recipients fail to fulfill this service obligation, the grant converts to a federal loan they must repay with interest.

Why we flagged it

The bill functions as a conditional grant-to-loan program designed to incentivize entry into school psychology and service in under-resourced schools. It is fundamentally a workforce development and student financial aid mechanism, not a regulatory or appropriations rider.

What the text implies

• The bill's effectiveness depends entirely on appropriations; without funding, no grants are awarded. The 'authorized to be appropriated' language creates no mandatory spending.
• Loan conversion and repayment terms are delegated to the Assistant Secretary via regulation, creating potential for administrative discretion in enforcement and reconsideration standards.
• The definition of 'covered schools' (ratio of psychologists to students < 1:500) may shift over time as schools hire more psychologists, potentially narrowing the pool of eligible service sites.
• Recipients who fail to serve may face loan repayment with interest accruing from the grant award date, creating a financial penalty that could burden graduates who encounter legitimate barriers to employment in covered schools.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

The bill directly addresses a documented shortage of school psychologists in under-resourced schools by creating financial incentives for students to enter the profession and commit to serving high-need districts. Citizens benefit through improved mental health and counseling services in schools that currently lack adequate psychological support, particularly in lower-income areas. The service obligation ensures public return on the investment.

Who stands to gain

• undergraduate and graduate students in school psychology programs
• institutions of higher education offering school psychology degrees

Named in the bill

Assistant Secretary for Mental Health and Substance Use, Public Health Service Act, Higher Education Act of 1965, Elementary and Secondary Education Act of 1965, Department of Education, Committee on Health, Education, Labor, and Pensions, Committee on Education and Workforce

Where it stands

2 cosponsors: 2 Democrats.

• May 20, 2025 — Introduced · Congress.gov: “Introduced in House”
• May 20, 2025 — Referred to House Committee on Energy and Commerce · Congress.gov: “Referred to the House Committee on Energy and Commerce”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.