Nebraska schools lose $1 billion in mental health grants

Nebraska schools are set to lose substantial funding for mental health services due to the cancellation of federal grants. On May 2, 2025, the U.S. Department of Education announced it would terminate approximately $1 billion in grants tied to the Bipartisan Safer Communities Act of 2022. This act was designed to support schools in addressing the escalating mental health crisis among students, particularly in the wake of tragic events such as the Uvalde, Texas school shooting that resulted in the deaths of 19 students and two teachers.

The Department of Education cited improper use of the funds as a primary reason for the cancellation. Madi Biedermann, the deputy assistant secretary for communications, stated that recipients utilized the grants for initiatives unrelated to mental health, including race-based recruitment quotas, which the department believes detracted from the intended purpose of supporting student mental health.

Lincoln Public Schools (LPS) had received a five-year grant of $7 million, which required a 25% local match. This funding allowed the district to hire 18 elementary counselors and bolster mental health support services. Interim Superintendent John Skretta confirmed that LPS has sufficient funds to maintain these counseling positions for the 2025-26 school year. He noted that the district plans to appeal the grant cancellation and emphasized that even without the federal funding, there would be no immediate layoffs. LPS will work to retain its personnel and may reassign staff as needed.

In addition to LPS, the Nebraska Department of Education was granted $4.83 million under the same act. The status of this funding remains uncertain, as department officials were not available for immediate comment.

The loss of these funds poses a significant challenge for Nebraska schools striving to provide essential mental health services, especially as the need for such support continues to grow among students. Without this financial backing, districts will need to explore alternative funding sources to maintain their mental health programs.