Proposed Rule2025-13385

Mental Health Service Professional Demonstration Grant Program

Primary source

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Published
July 17, 2025

Issuing agencies

Education Department

Abstract

The Department of Education (Department) proposes priorities, requirements, and definitions under the Mental Health Service Professional Demonstration Grant Program (MHSP), Assistance Listing Number (ALN) 84.184X. The Department may use these priorities, requirements, and definitions for competitions in fiscal year (FY) 2025 and later years. The proposed priorities, requirements, and definitions are designed to better target activities designed to address shortages of school-based mental health services providers, specifically school psychologists, in high-need local educational agencies (LEAs). These priorities, requirements, and definitions are intended to replace the Notice of Final Priorities, Requirements, and Definitions published in the Federal Register on October 4, 2022 (87 FR 60083). However, those priorities, requirements, and definitions remain in effect for previous grant competitions in which the notices inviting applications (NIAs) were published before the Department finalizes the proposed priorities, requirements, and definitions in this notice.

Full Text

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<title>Federal Register, Volume 90 Issue 135 (Thursday, July 17, 2025)</title>
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[Federal Register Volume 90, Number 135 (Thursday, July 17, 2025)]
[Proposed Rules]
[Pages 33349-33353]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-13385]


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DEPARTMENT OF EDUCATION

34 CFR Chapter II

[Docket ID ED-2025-OESE-0153]


Mental Health Service Professional Demonstration Grant Program

AGENCY: Office of Elementary and Secondary Education, Department of 
Education.

ACTION: Proposed priorities, requirements, and definitions.

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SUMMARY: The Department of Education (Department) proposes priorities, 
requirements, and definitions under the Mental Health Service 
Professional Demonstration Grant Program (MHSP), Assistance Listing 
Number (ALN) 84.184X. The Department may use these priorities, 
requirements, and definitions for competitions in fiscal year (FY) 2025 
and later years. The proposed priorities, requirements, and definitions 
are designed to better target activities designed to address shortages 
of school-based mental health services providers, specifically school 
psychologists, in high-need local educational agencies (LEAs). These 
priorities, requirements, and definitions are intended to replace the 
Notice of Final Priorities, Requirements, and Definitions published in 
the Federal Register on October 4, 2022 (87 FR 60083). However, those 
priorities, requirements, and definitions remain in effect for previous 
grant competitions in which the notices inviting applications (NIAs) 
were published before the Department finalizes the proposed priorities, 
requirements, and definitions in this notice.

DATES: We must receive your comments on or before August 18, 2025.

ADDRESSES: Comments must be submitted via the Federal eRulemaking 
Portal at <a href="http://www.Regulations.gov">www.Regulations.gov</a>. See the SUPPLEMENTARY INFORMATION 
section for more details.

FOR FURTHER INFORMATION CONTACT: Dana Carr, U.S. Department of 
Education, 400 Maryland Avenue SW,

[[Page 33350]]

Room 4B210, Washington, DC 20202. Telephone:(202) 987-0119. Email: 
<a href="/cdn-cgi/l/email-protection#18557d766c797436507d79746c70587d7c367f776e"><span class="__cf_email__" data-cfemail="9fd2faf1ebfef3b1d7fafef3ebf7dffafbb1f8f0e9">[email&#160;protected]</span></a>.
    If you are deaf, hard of hearing, or have a speech disability and 
wish to access telecommunications relay services, please dial 7-1-1.

SUPPLEMENTARY INFORMATION: 
    Invitation to Comment: We invite you to submit comments regarding 
the proposed priorities, requirements, and definitions. Comments must 
be submitted via the Federal eRulemaking Portal at <a href="http://www.Regulations.gov">www.Regulations.gov</a>. 
However, if you require an accommodation or cannot otherwise submit 
your comments via <a href="http://Regulations.gov">Regulations.gov</a>, please contact the program contact 
person listed under FOR FURTHER INFORMATION CONTACT. The Department 
will not accept comments submitted by fax or by email, or comments 
submitted after the comment period closes. To ensure the Department 
does not receive duplicate copies, please submit your comments only 
once. In addition, please include the Docket ID at the top of your 
comments.
    Federal eRulemaking Portal: Go to <a href="http://www.Regulations.gov">www.Regulations.gov</a> to submit 
your comments electronically. Information on using <a href="http://Regulations.gov">Regulations.gov</a>, 
including instructions for accessing agency documents, submitting 
comments, and viewing the docket, is available on the site under 
``FAQ.'' Also included on <a href="http://Regulations.gov">Regulations.gov</a> is a commenter checklist that 
addresses how to submit effective comments.
    In instances where individual submissions appear to be duplicates 
or near duplicates of comments prepared as part of a writing campaign, 
the Department may choose to post to <a href="http://Regulations.gov">Regulations.gov</a> one representative 
sample comment along with the total comment count for that campaign. 
The Department will consider these comments along with all other 
comments received. In instances where individual submissions are 
bundled together (submitted as a single document or packaged together), 
the Department will post all of the substantive comments included in 
the submissions along with the total comment count for that document or 
package to <a href="http://Regulations.gov">Regulations.gov</a>.
    Comments containing personal threats will not be posted to 
<a href="http://Regulations.gov">Regulations.gov</a> and may be referred to the appropriate authorities.
    During and after the comment period, you may inspect public 
comments about these proposed priorities, requirements, and definitions 
by accessing <a href="http://Regulations.gov">Regulations.gov</a>. To inspect comments in person, please 
contact the person listed under FOR FURTHER INFORMATION CONTACT.
    Privacy Note: The Department's policy is generally to make all 
comments received from members of the public available for public 
viewing in their entirety on the Federal eRulemaking Portal at 
<a href="http://www.Regulations.gov">www.Regulations.gov</a>. Therefore, commenters should be careful to include 
in their comments only information that they wish to make publicly 
available.
    Assistance to Individuals with Disabilities in Reviewing the 
Rulemaking Record: On request we will provide an appropriate 
accommodation or auxiliary aid to an individual with a disability who 
needs assistance to review the comments or other documents in the 
public rulemaking record for the proposed priorities, requirements, and 
definitions. If you want to schedule an appointment for this type of 
accommodation or auxiliary aid, please contact the person listed under 
FOR FURTHER INFORMATION CONTACT.
    Purpose of Program: The MHSP program provides competitive grants to 
State educational agencies (SEAS)(as defined in 20 U.S.C. 7801(30)) and 
LEAs (as defined in 20 U.S.C. 7801(49)) to address the shortage of 
credentialed \1\ school-based mental health services providers, 
specifically school psychologists, in high-need LEAs.
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    \1\ Terms with proposed definitions elsewhere in this notice are 
italicized the first time they are used.
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    Assistance Listing Number: 84.184X.
    Program Authority: Section 4631(a)(1)(B) of the Elementary and 
Secondary Education Act of 1965, as amended (ESEA) (20 U.S.C. 
7281(a)(1)(B)).
    Background: Our Nation's schools should be safe and secure settings 
where children can learn and grow to their full potential. However, 
over the last several years the decline of children and youth mental 
health has become a serious concern for our Nation. Given the 
importance of improving child and youth mental health, we are proposing 
three priorities aimed at increasing State and local capacity to 
improve students' mental health. Two of the proposed priorities are 
intended to provide funding to allow SEAs and LEAs to develop 
innovative and tailored strategies to enhance their school psychologist 
workforce pipeline. Evidence suggests that increasing the number of 
available school psychologists is related to enhanced mental or 
behavior health services provision for students.\2\ Additionally, the 
estimated student to school psychologist ratio for the 2023-2024 school 
year was 1065:1. To further meet the need for targeted mental health 
services, the Department proposes a third priority intended to increase 
the number of credentialed school psychologists available to provide 
early intervention mental health services and intensive mental health 
services to students most in need of those services.
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    \2\ Eklund, K., DeMarchena, S.L., Rossen, E., Izumi, J.T., 
Vaillancourt, K., & Rader Kelly, S. (2020). Examining the role of 
school psychologists as providers of mental and behavioral health 
services. Psychology in the Schools, 57, 489-501. Available at: 
<a href="https://onlinelibrary.wiley.com/doi/10.1002/pits.22323">https://onlinelibrary.wiley.com/doi/10.1002/pits.22323</a>. Accessed on 
June 10, 2025.
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    To support effective implementation of the proposed priorities and 
administration of the program, and to maximize the benefit of these 
Federal funds, the Department proposes application and program 
requirements. The proposed application requirements are intended to 
ensure that the LEAs benefiting from the MHSP program are high-need 
LEAs, and to provide data on how many school psychologists the 
applicant anticipates training and placing with grant funds in 
comparison to the number currently delivering services.
    The Department proposes program requirements intended to limit the 
amount of funds that can be used for administrative costs, require that 
program funds be used to supplement, not supplant, non-Federal funds, 
and prohibit the use of program funds for promoting or endorsing gender 
ideology, political activism, racial stereotyping, or hostile 
environments for students of particular races. The Department also 
proposes a requirement for grantees to leverage partnerships that are 
designed to coordinate consistent, high-quality training for new school 
psychologists. The Department proposes a requirement that these 
partnerships are formalized through an agreement within six months of 
the grant award. Additionally, given the importance of student safety 
and privacy, and of ensuring the protection of parental rights, the 
Department proposes requirements related to compliance with existing 
laws and obtaining parents' informed written consent for any mental-
health assessment or service funded under this program.
    Finally, to support the proposed priorities and requirements, the 
Department proposes elsewhere in this notice definitions for the 
following terms used in this program: ``credentialed,'' ``early 
intervention mental health services,'' ``eligible

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institution of higher education partner,'' ``high-need LEA,'' 
``intensive mental health services, ``school psychology graduate 
candidate,'' and ``school-based mental health partnership.''

Proposed Priorities

    This document contains three proposed priorities. We may apply one 
or more of these priorities in any year in which the program is in 
effect.
    Proposed Priority 1--Enhance SEA efforts to address shortages of 
school psychologists in high-need LEAs.
    To meet this priority, an SEA applicant must propose a project 
designed to train and place school psychology graduate candidates into 
high-need LEAs for the purpose of fulfilling requirements necessary to 
complete a degree and obtain a license or certification as a 
credentialed school psychologist.
    Proposed Priority 2--Expand the capacity of high-need LEAs to 
address shortages of school psychologists.
    To meet this priority, the applicant must propose a project 
designed to train and place school psychology graduate candidates into 
high-need LEAs for the purpose of fulfilling requirements necessary to 
complete a degree and obtain a license or certification as a 
credentialed school psychologist.
    Proposed Priority 3--Increase the number of credentialed school 
psychologists available to deliver early intervention mental health 
services and intensive mental health services in high-need LEAs.
    To meet this priority, applicants must propose to increase the 
number of credentialed school psychologists available to engage in:
    (a) Providing intensive mental health services and supports to 
individual students most in need of those services,
    (b) Providing early intervention mental health services to address 
acute concerns and determine if intensive mental health services are 
needed.

Types of Priorities

    When inviting applications for a competition using one or more 
priorities, we designate the type of each priority as absolute, 
competitive preference, or invitational through a notice in the Federal 
Register. The effect of each type of priority follows:
    Absolute priority: Under an absolute priority, we consider only 
applications that meet the priority (34 CFR 75.105(c)(3)).
    Competitive preference priority: Under a competitive preference 
priority, we give competitive preference to an application by (1) 
awarding additional points, depending on the extent to which the 
application meets the priority (34 CFR 75.105(c)(2)(i)); or (2) 
selecting an application that meets the priority over an application of 
comparable merit that does not meet the priority (34 CFR 
75.105(c)(2)(ii)).
    Invitational priority: Under an invitational priority, we are 
particularly interested in applications that meet the priority. 
However, we do not give an application that meets the priority a 
preference over other applications (34 CFR 75.105(c)(1)).

Proposed Requirements

    The Department proposes the following requirements for this 
program. We may apply one or more of these requirements in any year in 
which this program is in effect.

Proposed Application Requirements

    (a) SEA applicants must identify in their applications the specific 
high-need LEAs that will benefit from the grant or describe how they 
will identify and select the high-need LEAs that will benefit from the 
grant.
    (b) Applicants must describe in their applications a school-based 
mental health partnership designed to train school psychology graduate 
candidates and place them into participating high-need LEAs.
    (c) Applicants must include in their applications the most recently 
available data on the number of school psychologists in the high-need 
LEA(s) and the projected number of school psychology graduate 
candidates that will be trained and placed into employment in the 
identified LEA(s) for each year of the plan using funds from this 
grant.

Proposed Program Requirements

    (a) Eligible applicants for this program are one or both of SEAs, 
as defined in 20 U.S.C. 7801(49), or LEAs, as defined in 20 U.S.C. 
7801(30), including consortia of LEAs.
    (b) Applicants that receive an award under this program must use 
grant funds to supplement, and not supplant, non-Federal funds that 
would otherwise be available for activities funded under this program.
    (c) Administrative costs for SEA applicants that receive an award 
under this program may not exceed 10 percent of the annual grant award. 
Administrative costs for applicants that are LEAs and consortia of LEAs 
may not exceed five percent of the annual grant award.
    (d) Applicants that receive an award under this program are 
prohibited from using program funds for promoting or endorsing: (1) 
gender ideology, (2) political activism, (3) racial stereotyping, or 
(4) hostile environments for students of particular races.
    (e) Applicants that receive an award under this program must 
provide within six months of award a memorandum of understanding (MOU), 
a memorandum of agreement (MOA), or letter of agreement documenting the 
applicant's school-based mental health partnership, as defined in this 
notice to the Department. The agreement must be signed by each entity's 
authorized representative. The agreement must detail each entity's 
roles and responsibilities in training and placing school psychology 
graduate candidates into high-need LEAs to achieve the goals and 
objectives of the project.
    (f) Applicants that receive an award under the program must comply 
with section 4001(a) of Title IV of the ESEA. In carrying out the 
Informed Written Consent requirements described in paragraph (a)(1), 
the exception in (a)(2)(B)(i) only applies after the applicant has 
documented that it has made multiple repeated attempts through various 
communication methods to obtain parent consent. Subsequently, where 
parent consent is not obtained under (a)(2), not including the 
provisions in (B)(ii), the parent of a child participating in such 
services will be provided notice of initial and subsequent service 
delivery.
    (g) Applicants that receive an award under this program must ensure 
that any school psychologist or any school psychology graduate 
candidate offering services does so in a manner consistent with the 
Family Educational Rights and Privacy Act (FERPA), the Protection of 
Pupil Rights Amendment (PPRA), the Individuals with Disabilities 
Education Act (IDEA), Section 504 of the Rehabilitation Act, and the 
Americans with Disabilities Act, as well as all other applicable 
Federal, State, and local laws.

Proposed Definitions

    The Department proposes to establish definitions of 
``credentialed,'' ``early intervention mental health services,'' 
``eligible institution of higher education partner,'' ``high-need 
LEA,'' ``intensive mental health services, ``school psychology graduate 
candidate,'' and ``school-based mental health partnership'' for use in 
this program. We may apply these definitions in any year in which this 
program is in effect.
    Credentialed means an individual who possesses a valid license or 
certificate from the SEA or relevant regulatory body as a school 
psychologist approved by the State to provide

[[Page 33352]]

services aligned with the practice of school psychology.
    Early intervention mental health services mean services for 
students who are exhibiting signs of distress or impairment or are at 
heightened risk of needing mental health services. Based on current 
best practices in school psychology for serving an individual student, 
early intervention mental health services may include, for example, 
screening and referrals, small group services, and or brief 
individualized interventions.
    Eligible institution of higher education partner means an 
institution of higher education as defined in 20 U.S.C. 1002 that 
offers a program of study that leads to a master's degree or other 
graduate degree in school psychology that prepares graduate candidates 
for a State credential as a school psychologist.
    High-need LEA means an LEA that has a significant need for 
additional school psychologists based on:
    (a)(1) a ratio of students to school psychologists that exceeds a 
ratio of 500 students to 1 school psychologist and (2) high rates of 
school violence, poverty, substance use, suicide, trafficking, or other 
adverse childhood experiences; or
    (b) having received a Project School Emergency Response to Violence 
(SERV) grant from the U.S. Department of Education since October 1, 
2020.
    (c) having experienced a traumatic event since January 1, 2025, and 
did not receive a Project School Emergency Response to Violence (SERV) 
grant from the U.S. Department of Education.
    Intensive mental health services mean services for students with 
identified mental health needs that limit engagement throughout the 
school day. Based on the best clinical approach to serving an 
individual student, intensive mental health services may include, for 
example, individual, group, or family therapy services, or coordination 
of services with providers serving the student in a non-school setting.
    School psychology graduate candidate means an individual who is (a) 
pursuing a Master's degree, or State-recognized equivalent, in school 
psychology and (b) will be eligible upon completion of the program for 
a license or certification from a State or national credentialing 
authority as a school psychologist approved by the State to deliver 
school-based mental health services.
    School-based mental health partnership is the formal relationship, 
established for the purpose of training and placing school psychology 
graduate candidates into high-need LEAs, between the eligible applicant 
(one or more high-need LEAs or an SEA) and its partners, who must 
include:
    (a) One or more eligible institutions of higher education partners, 
as defined in this notice, or
    (b) One or more entities, recognized by the State, to train and 
prepare school psychology graduate candidates for a school psychology 
credential; or
    (c) State entities such as Governors, State workforce development 
agencies or boards, State vocational rehabilitation agencies, State 
higher education agencies.
    Final Priorities, Requirements, and Definitions: We will announce 
the final priorities, requirements, and definitions in a notice in the 
Federal Register. We will determine the final priorities, requirements, 
and definitions after considering responses to this notice and other 
information available to the Department. This notice does not preclude 
us from proposing additional priorities, requirements, or definitions, 
subject to meeting applicable rulemaking requirements.
    Note: This notice does not solicit applications. In any year in 
which we choose to use these priorities, requirements, and definitions, 
we invite applications through a notice in the Federal Register.

Executive Orders 12866, 13563, and 14192

Regulatory Impact Analysis

    This proposed regulatory action is not a significant regulatory 
action subject to review by OMB under section 3(f) of Executive Order 
12866. Since this regulatory action is not a significant regulatory 
action under section 3(f) of Executive Order 12866, it is not 
considered an ``Executive Order 14192 regulatory action.''
    We have also reviewed this proposed regulatory action under 
Executive Order 13563. We are issuing the proposed priorities, 
requirements, and definitions only on a reasoned determination that 
their benefits would justify their minimal costs. The Department 
believes that this regulatory action is consistent with the principles 
in Executive Order 13563.
    We also have determined that this regulatory action would not 
unduly interfere with State, local, and Tribal governments in the 
exercise of their governmental functions.
    In accordance with these Executive orders, the Department has 
assessed the potential costs and benefits, both quantitative and 
qualitative, of this regulatory action. The potential costs are those 
resulting from statutory requirements and those we have determined as 
necessary for administering the Department's programs and activities.

Discussion of Costs and Benefits

    The Department believes that these proposed priorities, 
requirements, and definitions would not impose significant costs on 
eligible entities, whose participation in this program is voluntary, 
and whose costs can generally be covered with grant funds. As a result, 
the proposed priorities, requirements, and definitions would not impose 
any particular burden, except when an entity voluntarily elects to 
apply for a grant. The proposed priorities, requirements, and 
definitions would help ensure that the grant program selects high-
quality applicants to implement activities that meet the goals of the 
program. We believe these benefits would outweigh any associated costs.
    Intergovernmental Review: This program is subject to Executive 
Order 12372 and the regulations in 34 CFR part 79.
    This document provides early notification of our specific plans and 
actions for this program.

Regulatory Flexibility Act Certification

    This section considers the effects that the final regulations may 
have on small entities in the educational sector as required by the 
Regulatory Flexibility Act, 5 U.S.C. 601 et seq. The Secretary 
certifies that the proposed priorities, requirements, and definitions 
would not have a significant economic impact on a substantial number of 
small entities.
    The small entities that these proposed priorities, requirements, 
and definitions would affect are LEAs applying for and receiving funds 
under this program. We believe that the costs imposed on an applicant 
by the proposed priorities, requirements, and definitions would be 
limited to paperwork burden related to preparing an application and 
that the benefits of the proposed priorities, requirements, and 
definitions would outweigh any costs incurred by the applicant.
    Participation in this program is voluntary. For this reason, the 
proposed priorities, requirements, and definitions would impose no 
burden on small entities unless they applied for funding under the 
program. Eligible applicants would determine whether to apply for funds 
and would weigh the requirements for preparing applications, and any 
associated costs, against the likelihood of receiving funding and the 
requirements for implementing projects under the program. Eligible 
applicants

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most likely would apply only if they determine that the likely benefits 
exceed the costs of preparing an application. The likely benefits 
include the potential receipt of a grant as well as other benefits that 
may accrue to an entity through its development of an application, such 
as the use of that application to seek funding from other sources to 
address a shortage in school-based mental health services providers.

Paperwork Reduction Act of 1995

    The proposed priorities, requirements, and definitions contain 
information collection requirements that are approved by OMB under OMB 
control number 1810-0772. The proposed priorities, requirements, and 
definitions do not affect the currently approved data collection.
    Accessible Format: On request to the program contact person listed 
under FOR FURTHER INFORMATION CONTACT, individuals with disabilities 
can obtain this document in an accessible format. The Department will 
provide the requestor with an accessible format that may include Rich 
Text Format (RTF) or text format (txt), a thumb drive, an MP3 file, 
braille, large print, audiotape, compact disc, or other accessible 
format.
    Electronic Access to This Document: The official version of this 
document is the document published in the Federal Register. You may 
access the official edition of the Federal Register and the Code of 
Federal Regulations at <a href="http://www.govinfo.gov">www.govinfo.gov</a>.
    You may also access Department documents published in the Federal 
Register by using the article search feature at 
<a href="http://www.federalregister.gov">www.federalregister.gov</a>.

Hayley B. Sanon,
Principal Deputy Assistant Secretary and Acting Assistant Secretary, 
Office of Elementary and Secondary Education.
[FR Doc. 2025-13385 Filed 7-16-25; 8:45 am]
BILLING CODE 4000-01-P


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