Bill
SB 783
Creates a state-funded grant program to place more mental health professionals in public schools and a loan-repayment program to attract/retain workers in high-need districts.
Title: School Mental Health Support Act
Sponsor: Sen. Bradley (Primary); additional sponsors: Sen. Salvador, Sen. Waddell, Sen. Theodros, Sen. Chitlik, Sen. Woodson Bradley
Status: Filed April 21, 2026; referred to Rules and Operations (Senate)
Purpose: To create a state-funded framework for expanding school-based mental health support, including a grant program for school units and a loan repayment program to attract and retain qualified mental health workers in high-need areas.
Key Provisions
Part I – School-Based Mental Health Grant Program
- Establishment: Adds §115C-376.6 (School-Based Mental Health Grant Program) within Article 25B of Chapter 115C.
- Definitions: Defines “mental health support personnel” to include:
- School counselors, school psychologists, school social workers
- Psychiatrists licensed under Article 1, Chapter 90
- Psychologists (per G.S. 90-270.136(6))
- Licensed psychological associates (G.S. 90-270.136(7))
- Licensed clinical mental health counselors (G.S. 90-330(a))
- Substance use disorder professionals (G.S. 90-113.31A(26))
- Clinical social workers (G.S. 90B-3(6))
- Program Purpose: Increase student access to mental health support personnel in public school units, contingent on available funds.
- Applications: Dept. of Public Instruction (DPI) will provide grant applications with deadlines and required information.
- Award Criteria: Grants awarded to public school units based on need, prioritizing units with higher shares of students with limited or no access to mental health services, including uninsured students and students with disabilities.
- Use of Funds: Grants must be used to contract with mental health support personnel to provide services in one or more schools within the district.
- Supplement Not Supplant: Grants supplement, not replace, existing funding for mental health services.
- Reporting: DPI must report by March 15 each year to the Joint Legislative Education Oversight Committee and the Joint Legislative Oversight Committee on Health and Human Services, detailing:
- Which units received grants
- Amounts awarded to each unit
- Services purchased with the funds
- Recommendations to improve student mental health access, especially for underserved students
Part I – Funding
- Appropriation: $50,000,000 (recurring) from the General Fund for the 2026-2027 fiscal year to DPI to administer the grant program under §115C-376.6.
- Administrative Costs: Up to $75,000 of the annual funds may be used for program administration.
Part II – School Mental Health Worker Loan Repayment Program
- Addition: Adds §116-209.47 (School Mental Health Worker Loan Repayment Program) to Part 1 of Article 23, Chapter 116.
- Definitions:
- Eligible participants: School psychologists, school counselors, school social workers, or school nurses who:
- Live in NC
- Graduated from a UNC constituent institution
- Have student debt
- Are employed by a high-need public school unit
- Have at least one year of public school employment
- High-Need Public School Unit: Districts meeting either:
- Part or all of their area is in Tier 1 or Tier 2 development zones (G.S. 143B-437.08), or
- They are a high-need school (as defined in G.S. 116-74.41A(5))
- Student Debt: Total outstanding federal, state, and private student debt
- Program Purpose: Provide loan repayment grants to eligible school mental health workers to help repay student debt.
- Selection & Lottery: Authority (State Education Assistance Authority) will establish eligibility criteria and standards. If funds are insufficient, a lottery may be used to select recipients, prioritizing applicants who received an award in the prior year.
- Amount & Timing: Grants equal 20% of the recipient’s student debt, up to $15,000 per recipient, awarded annually no later than October 1. No individual may receive more than five total years of awards.
- Administration & Carryforward:
- Up to 4% of funds may be retained annually for administration.
- Funds do not revert at year-end; they remain available for subsequent years.
- Rulemaking: Authority may adopt rules to implement and enforce the program.
- Accountability: Annual report to the Joint Legislative Education Oversight Committee by December 1, including:
- Demographic information, recipient institutions, field of employment, and high-need area data
- Recommendations to improve the program and expand the pool of eligible workers
Part II – Funding for the Loan Repayment Program
- Appropriation: $19,000,000 (recurring) from the General Fund to UNC Board of Governors to allocate to the State Education Assistance Authority for the 2026-2027 fiscal year to fund the loan repayment program.
Part II – Effective Dates
- The loan repayment provisions take effect July 1, 2026, and apply to disbursement applications beginning in the 2027-2028 fiscal year.
- The rest of the act generally becomes effective July 1, 2026.
Part III – Effective Date
- The act becomes effective July 1, 2026, except where otherwise specified.
Potential Impact
Notes
- The program relies on ongoing appropriations; annual funding levels will influence grant size, number of recipients, and the scale of services.
- The definitions include a broad set of mental health professionals, expanding beyond traditional school counselors to include licensed professionals who can provide a wider range of services.
If you’d like, I can break down the potential budget impacts by scenario or map which NC school units might qualify as high-need under the bill’s criteria.
Compiled from official sources — confirm details with the bill’s official record.
Sign in to ask a question.
