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Federal grant cuts put school mental health resources at risk, staffers say

by Tom Hanson Justin Sherman Aparna Zalani
July 28, 2025
Reading Time: 2 mins read
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Federal grant cuts put school mental health resources at risk, staffers say

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As public school districts prepare for a new school year, there are concerns about dwindling resources stemming from federal funding cuts, with many states sounding the alarm about grants for mental health counselors and social workers.   

Andrea Tarsi, one of 19 mental health staffers serving 6,500 students in a rural northwest Connecticut district, may soon be out of a job.

“Without that support staff in the building, students are unable to get the mental health services that they need,” said Tarsi, who has been working in the district for the last three years. “And when it comes to crises, not having proper staffing in the building is a safety issue for everybody.”

In April, the Trump administration, citing diversity, equity and inclusion issues, abruptly discontinued millions of dollars in mental health grants designed to help students. The Department of Education told CBS News in a statement that it found “grant recipients used the funding to implement race-based actions like recruiting quotas.”

Jonathan Costa is the executive director of Ed Advance, which provides services to 31 school districts in Connecticut. He told CBS News: “We hired the best we could find. And I don’t even know how to say that. I mean, we didn’t hire any counselor of color.”

He said he was stunned when the grant was suspended.

“If you are in a small public school district and they don’t have a full-time counselor or social worker, your only option to get mental health care is to seek help from a private provider, and there are very few of them available,” Costa said.

A CBS News analysis of Department of Education data found a severe shortage of child mental health professionals nationwide. Forty-seven of 50 states fall short of recommended counselor-to-student ratios, especially in rural areas.

Department of Education spokesperson Madi Biedermann told CBS News it will “recompete and provide continuation awards,” adding that the “Trump Administration will review applications based on detailed plans to address the unique mental health needs of a community and pathways to getting high-quality mental health professionals in K-12 schools.” Costa says his district will have to reapply and compete with other applicants again. The department is being sued by 16 states, including Connecticut, over the cuts.

Costa says if they lose the grant, all 19 staffers he hired may have to be let go. It’s a problem many school districts across the country have shared with CBS News.

“People deal with trauma in their lives, and when that happens, they need someone to talk to,” Costa said. “They need support. And I see every day how our adults help these kids in those situations.”

Tom Hanson

Tom Hanson is a national investigative correspondent for CBS News and Stations. His in-depth reports air across all platforms and programs. He is a member of CBS News and Stations Medical, Health, and Wellness Unit.

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Tom Hanson Justin Sherman Aparna Zalani

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