The DOE Shake-Up: What’s Changing & Why It Matters for Youth Mental Health and Education

Schools have long been one of the frontlines for mental health care for our youth. When students struggle emotionally or psychologically, their ability to learn, connect, and engage can suffer. That’s why recent shifts at the U.S. Department of Education (DOE) demand our close attention — the changes are more than policy tweaks. They risk weakening the support systems that many students depend on.

In this post, we’ll unpack:

• What’s changing at the DOE and with federal grant programs

• The potential impacts on student mental health and academic outcomes

• What this means for equity, special education, and school systems

• What we can do (individually and collectively) to protect student wellness

A Snapshot: What’s Changing

Cuts, Redirections & Suspended Grants

In April 2025, the DOE announced it would cancel or not renew roughly $1 billion in federal mental health grants intended to support schools in hiring counselors, psychologists, and other behavioral health professionals. KFF+3AP News+3Politico+3

These grants originated under the Bipartisan Safer Communities Act (BSCA) of 2022, which aimed to bolster school-based mental health services following mass shooting events. KFF+2North Carolina Health News+2

Relaunch, But With Different Focus

More recently, the DOE has signaled a relaunch of grant opportunities (about $270 million) but with major changes to eligibility and intent. Education Week

• Focus is narrowed to school psychologists, rather than a broader mix of mental health professionals (counselors, social workers, etc.). Education Week

• Previous emphasis on recruiting professionals who reflect the diversity of the communities served (i.e., being intentional about representative hiring) has been removed. Education Week

• Funding use is more constrained, with prohibitions on programs the DOE labels “gender ideology, political activism, racial stereotyping, or hostile environments.” Education Week

These changes could mean that many schools — especially those already stretched thin — struggle to meaningfully compete for or implement the newly relaunched grants.

Impacts on Mental Health & Education

1. Reduced Access to School-Based Care

• Nearly 1 in 5 students in U.S. public schools utilize mental health services provided at school. KFF

• Schools themselves acknowledge that funding constraints and workforce shortages are top barriers to serving all students in need. KFF+1

• Some school districts facing cancelled grants must consider laying off mental health staff or scaling back programs already underway. North Carolina Health News+1

Without those services, many students will lose their easiest access point for emotional support. For some, school counseling or in-school therapy is the only viable mental health option.

2. Academic & Behavioral Fallout

When students’ mental health needs go unmet, the effects can seep into academic performance and school climate:

• Increased absenteeism or disengagement

• Lower concentration, motivation, and cognitive capacity

• Behavioral challenges or disciplinary referrals

• Decline in grades or risk of falling behind

Moreover, teachers and staff — especially in under-resourced schools — may find themselves with less capacity to support students’ emotional needs, increasing burnout and stress on faculty.

3. Deeper Inequities

Cuts may disproportionately harm:

• Underfunded and rural districts that lack local resources to backfill gaps

• Students of color and marginalized populations, who often rely more heavily on school-based supports

• Those with disabilities or complex needs, whose supports are often tied to collaborative services in schools

• Schools with fewer staff or fewer alternative funding sources

Because many districts already struggle to hire and retain qualified mental health professionals, these changes risk widening gaps between well-resourced districts and those already underserved.

4. Shifting Responsibility to Schools & Local Systems

As federal support shrinks or becomes more conditional, more burden lands on school districts, states, and communities to pick up the slack — often without clear plans or resources. This shift could lead to inconsistent service availability, patchwork care, and gaps based on geography or local wealth.

Why This Matters to Us at Cerebral Counseling & Consulting

At Cerebral, we see firsthand how a destabilized support structure in schools can ripple out:

• Youth who once accessed help at school may now come to private or community providers — but many can’t due to cost, transportation, or capacity constraints.

• School partners may lose coordination or referrals if their internal mental health teams shrink or disappear.

• The gap between academic and emotional support widens — but for many, they are inseparable. You can’t thrive academically if you’re struggling internally.

We believe strongly that mental health is foundational to educational success. Schools can’t just teach; they need to heal, support, and sustain.

What Actions Can We Take?

Amplify & Advocate

• Contact your district leaders, school board members, and state representatives — ask them how they are protecting or augmenting mental health service capacity.

• Share stories and data showing how these changes hurt real students and communities.

• Hold districts accountable to transparency: how will they maintain existing services? Which positions are at risk?

  
  

Build Local Coalitions & Partnerships

• Collaborate with nonprofits, mental health agencies, and community centers to offer youth access outside school settings.

• Pursue local or philanthropic funding to preserve key mental health roles in schools.

• Explore telehealth or hybrid models to bridge service gaps.

  
  

Monitor & Track Outcomes

• Collect data on student mental health needs, waitlists, behavioral incidents, and academic impact locally.

• Use this to advocate — numbers and stories together carry weight.

  
  

Focus on Prevention & Early Support

• Strengthen social-emotional learning, universal screening, and early identification to catch risk before crisis.

• Train teachers and staff in trauma-informed practices, mental health literacy, and referral mechanisms.

  
  

Support Student & Youth Voice

• Engage young people directly: ask them what supports they need and what’s working (or not).

• Involve youth in planning any mental health initiatives — their perspectives are crucial.

  
  

Final Thoughts

The shifts at the DOE — from cutting grants to reshaping their priorities — represent more than bureaucratic change. They threaten the scaffolding that many students lean on for emotional safety and growth within schools. Rather than retreat, this should be a moment to double down on advocacy, creativity, and local care networks.

We stand with students, educators, and communities in pushing back against the erosion of supports. At Cerebral Counseling & Consulting, our mission is to uphold mental wellness in every space it belongs — whether in school halls or community rooms.