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School Districts Lose Mental Health Funding as Federal Support Fades

Whatcom County schools in Washington state are searching for ways to maintain services after pandemic-era mental health grants expired.

Counselor to the President in 2017
Counselor to the President in 2017      School Counselor Student    See source / Wikimedia Commons (CC BY 2.0)
By Free News Press Editorial Team
Published June 24, 2026 at 1:44 PM PDT

Schools in Whatcom County, Washington, are facing a shortfall in mental health services after federal funding that expanded counseling and support programs during the pandemic began to run out. The Bellingham Herald reported that districts in the county are now searching for solutions to maintain programs that many students and families have come to rely on.

The situation in Whatcom County reflects a broader challenge playing out across the country. Billions of dollars in federal pandemic relief money flowed to schools in the early 2020s, and many districts used that funding to hire counselors, social workers, and mental health staff. As those grants have expired, districts have faced difficult choices about which positions and programs to continue.

School officials in the county have not identified a single replacement source of funding. Options under consideration include local levies, state grants, and partnerships with community mental health organizations. None of those options fully replaces the scale of what federal dollars provided during the peak years of pandemic relief spending.

The funding gap comes at a time when student mental health needs remain high. The pressure on school districts is to preserve services even as the financial foundation beneath those services has shifted. Officials are working to find a path forward before the gaps in coverage become more visible to students and families.

No timeline for a resolution has been announced, and the situation remains ongoing as the next school year approaches.

John Podesta, Counselor to the President of the United States, addresses reporters in Addis Ababa after his meeting with Ethiopian Foreign Minister Tedros Adhanom on January 15, 2015. Counselor Podesta is visiting Ethiopia to engage with Ethiopian and the African Union officials. [State Department p
John Podesta, Counselor to the President of the U…      School Counselor Student    U.S. Department of State / Wikimedia Commons (Public domain)