Trump Cancels Mental Health Grants — How HR Should Respond

The Trump administration has canceled over $1 billion in federal grants for school mental health services. These grants, part of the Bipartisan Safer Communities Act, were allocated to address the growing mental health problem in K-12 schools. The legislation, signed into law by former President Joe Biden in 2022, intended to fund the salaries of thousands of school mental health professionals, such as counselors and psychologists.

The decision stems from concerns about diversity-minded criteria outlined in the grant documents — specifically, demographic hiring quotas for mental health care providers. The Trump administration claims such practices are discriminatory and illegal.

An alternative plan has not been announced, but U.S. Department of Education Deputy Assistant Secretary Madi Biederman told reporters the administration is keen to “ensure that taxpayer dollars are supporting evidence-based practices that are truly focused on improving students’ mental health.”

Takeaways for HR Professionals

While the grant cancellation primarily impacts recipient public schools, it also carries broader implications for HR professionals and private-sector organizations; namely, how organizations should approach inclusion and diversity (I&D) policies.

“HR leaders should view this development as an opportunity to audit their organizations’ inclusion and diversity (I&D) policies to ensure they are legally compliant,” said Alex Alonso, SHRM-SCP, chief data and analytics officer at SHRM. “While diversity practices may be under scrutiny, it is still possible — and advisable — to craft policies that balance diversity and merit in hiring practices.”

Embracing Skills-Based Hiring

One step HR professionals can take is to practice skills-based hiring. This approach prioritizes a candidate’s qualifications, experience, and potential, which can help break down barriers to employment for underrepresented groups.  

For example, hiring managers may choose to recognize qualified and experienced candidates without degrees — a group commonly excluded from the workplace — by focusing on the competencies they have demonstrated during previous work opportunities. Likewise, they may consider candidates with criminal histories or those who are recovering from job loss as they would all other candidates, looking beyond their faults and giving them the opportunity to demonstrate their qualifications.  

“Hiring from underutilized groups is a key driver of economic growth,” said Rustin Tonn, diversity, equity, and inclusion director at the SHRM Colorado State Council. “It offers potential and opportunity for those individuals, their families, their communities, and the employers who invest in them.”

Organizations should expand their definition of what makes a qualified candidate. For example, they may choose to evaluate candidates regardless of career gaps or short job experiences, which may be the results of caregiving obligations, negative workplace cultures, or any number of other reasons unrelated to the candidate’s skills and competencies.

“By emphasizing skills and competencies and recognizing outdated biases, organizations can foster both inclusivity and excellence in their workforce,” Alonso said.    

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Mental Health in the Workplace

The cancellation of these grants also serves as a reminder of the critical importance of mental health support, not just in schools, but also in the workplace. According to SHRM’s Employee Mental Health in 2024 Research Series, only 2 in 5 employees report being comfortable discussing their mental health at work.  

HR professionals should advocate for policies that support employees’ mental well-being. This includes fostering a supportive, motivating, and inclusive culture where employees feel valued and empowered to seek help when needed. Mental health resources, such as employee assistance programs (EAPs) and wellness initiatives, can significantly contribute to a healthier and more productive workforce. These programs can increase access to mental health care, providing employees with the tools they need to live healthier lives and allowing them to remain fully present during work hours.  

Managers are vital to a culture of empathy and understanding. By maintaining reasonable expectations of employees and demonstrating interest in their well-being, managers can keep their teams both healthy and engaged. They can start by finding a healthy middle ground — holding employees to the high standards necessary for success, but keeping the bar in a realistic place to care for them. Consider scheduling one-on-one meetings with employees, giving them a forum to voice their concerns or difficulties.  

“HR and leaders play a critical role in dismantling the stigma and bias surrounding mental health,” Tonn said. “When we fail to create environments that acknowledge and validate the very real human needs that arise from the pressures of work and life, we unintentionally encourage people to suppress, hide, or mask their mental health challenges.”

Toolkit: Managing Employee Assistance Programs: A Comprehensive Guide