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Bill

H 323

An act relating to mental health programming funded by the Mental Health Innovation Special Fund

2025-2026 Regular Session Introduced by Daisy Berbeco and 2 co-sponsors

Creates a dedicated Mental Health Innovation Special Fund to finance school-based mental health initiatives, workforce development, literacy, and peer-to-peer support in Vermont.

Rep. Wood of Waterbury moved that the Committee on Human Services be relieved of the bill and that the same be committed to the Committee on Health Care, which was agreed to
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Bill Summary · H 323

Summary of H.323 (2025-2026) — Vermont

Purpose and intent

H.323 seeks to establish a dedicated Mental Health Innovation Special Fund to finance a set of mental health and substance misuse initiatives in Vermont. The overarching goals are to foster innovation in the mental health workforce, expand school-based mental health services, enhance youth mental health literacy, and pilot peer-to-peer support in schools. The bill envisions sustainable funding for these programs through a new fund and a tax checkoff.

Key provisions and changes

  • Mental Health Innovation Special Fund (Sec. 1)

    • Creates the fund, to be administered by the Department.
    • Financed by:
    • Revenues from a new tax checkoff (see 32 V.S.A. § 5862g).
    • Donations and gifts from public/private sources.
    • Funds are restricted for use in:
    • Mental health screening program (16 V.S.A. § 1433).
    • Behavioral health innovation grant program (18 V.S.A. § 7115).
    • Other programs/services specified by statute.
    • Unexpended funds roll over to subsequent fiscal years (no automatic revert to General Fund).

  • Mental Health Innovation Special Fund Checkoff (Sec. 2)

    • Adds an option on individual tax returns to designate contributions to the Fund.
    • Designated amounts are deducted from refunds/overpayments and deposited to the Fund.
    • Rules for administration, potential repayment if designation exceeds entitlement, and taxpayer education about the Fund.

  • Behavioral Health Innovation Grant Program (Sec. 3)

    • Agency of Human Services administers a rolling grant program to support qualified providers in mental health and substance misuse treatment.
    • Priorities (decided by the Agency) include:
    • Youth and school-based services.
    • Workforce development, training, and education.
    • Technical assistance to implement best practices.
    • Pilots of promising practices.
    • Pilot workforce retention incentives.
    • Annual reporting (Dec. 15) to Legislature on funding, expenditures, grantee activities, and program effectiveness.
    • Rules to be adopted under Vermont’s rulemaking process.
    • Defines “qualified care providers” (licensed professionals or accredited organizations).
    • FY2026 appropriation of $10,000 from General Fund; future funding expected from the Special Fund.

  • Mental Health and Substance Misuse Literacy (Sec. 5)

    • Agency of Education, with Health/Mental Health Departments, to select and disseminate a youth mental health and substance misuse literacy curriculum.
    • Curriculum must cover: mental health/physical health link, wellness resources, signs/symptoms, prevalence, treatments, and how to seek help.
    • Curriculum posted on the Agency’s website and distributed to districts, parents, guardians, and youth-serving organizations.

  • Mental Health Screening Program in Schools (Sec. 6)

    • Establishes a program in which supervisory unions provide age-appropriate, evidence-based mental health screenings.
    • Rules for administration, FERPA-compliant data handling, training, conditions identified, and data sharing.
    • Supervisory unions must annually decide participation by July 1 and obtain parental consent, notify families, provide screening, share results with families, discuss resources, and use funds for screening services and related support.
    • Fund distribution: 90% based on prior year average daily membership; 10% for after-expenditure needs.
    • Immunity for school staff performing screenings absent recklessness or intentional misconduct.
    • Annual reporting to Legislature (July 1) on participation, referrals, fund use, and sufficiency.

  • Mental Health Screening Program Appropriation (Sec. 7)

    • FY2026 General Fund appropriation of $10,000 for the screening program; intent for future funding to come from the Special Fund.

  • Peer-to-Peer Mental Health Support in Schools (Sec. 8)

    • Four-year pilot program for grants to implement peer-to-peer mental health support in public and approved private schools.
    • Rolling grant applications begin August 1, 2026.
    • Priority considerations include suicide prevention components and areas with high suicide risk or recent trauma.
    • Training requirements for certified peer support specialists and school staff (aligned with National Model Standards).
    • A report due by January 1, 2030 evaluating participation, training efficacy, self-reported outcomes, and connections to professional services.
    • FY2027 appropriation of $10,000 from the Special Fund to support grants.

  • Effective Date (Sec. 9)

    • The act takes effect July 1, 2025.

Who would be affected

  • Students and families in Vermont schools (through screening, literacy curriculum, and peer-to-peer programs).
  • Supervisory unions/school districts (participation in screening program and implementation).
  • Mental health and substance misuse clinicians and organizations (eligibility for grants).
  • School personnel (training and data privacy considerations).
  • Taxpayers (voluntary checkoff contributions to the Mental Health Innovation Special Fund).

Timeline and process

  • Rolling grant processes begin January 1, 2026 (behavioral health grants) and August 1, 2026 (peer-to-peer grants).
  • Annual reporting on grants and fund use due December 15 (behavioral health grants) and July 1 (screening program reports).
  • Pilot program duration for peer-to-peer: four years, with a 2030 evaluation.
  • Initial appropriations: FY2026 – $10,000 for both grant and screening programs; future funding via the Special Fund.

Compiled from official sources — confirm details with the bill’s official record.

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