Governor Kathy Hochul on March 18th, announced a $4 million expansion of the Community Mental Health Loan Repayment Program to include licensed professionals serving children and adolescents at programs licensed or funded by the state. Administered by the state Office of Mental Health (OMH), in partnership with the Office of Children and Family Services (OCFS), the funding will provide at least 400 awards of up to $30,000 to help mental health professionals serving youth repay education loans and student debt, provided they work a minimum of three years at eligible mental health programs.

“The effectiveness of New York State’s mental health care system relies on our ability to attract top professionals to do this critical work,” Governor Hochul said. “By expanding the Community Mental Health Loan Repayment program to programs and facilities serving youth, we can help our state retain existing staff and recruit new professionals and avoid experiencing the shortages seen in many other areas of our nation.”

The Community Mental Health Loan Repayment Program provides up to $120,000 for psychiatrists and $30,000 for other mental health professionals to repay qualified education loans and student debt, provided they remain employed by licensed community mental health programs for three years. Program eligibility includes many licensed mental health professionals, including master and clinical social workers; mental health counselors; marriage and family therapists; creative arts therapists, psychoanalysts, and psychologists.

A high priority for workforce capacity is in the child and youth behavioral health workforce, due to the youth mental health crisis and the need for mental health professionals to address the national emergency in child and adolescent mental health. The expansion will further focus on eligible licensed professionals serving children and adolescents at community programs licensed, designated, or funded by OMH or OCFS to increase access and availability of mental health services for children and youth.

The latest expansion of the loan repayment program will extend at least 400 awards to OMH and OCFS providers offering direct care mental health services to children or adolescents. This includes children’s day treatment programs, Home Based Crisis Intervention programs, community residence for eating disorder integrated treatment programs, and voluntary foster care agencies, limited secure programs approved under New York City’s ‘Close to Home’ initiative, and runaway and homeless youth programs.

New York State Office of Mental Health Commissioner Dr. Ann Sullivan said, “Growing our youth mental health workforce is critical in expanding access to mental health services for our young New Yorkers. This expansion of the loan repayment program will help us build a mental health care workforce that is truly responsive to our needs today and long into the future. I applaud Governor Hochul’s continued focus on strengthening our mental health care system and ensuring all New Yorkers have the support they need to live and thrive.”

New York State Office of Children and Family Services Commissioner Dr. DaMia Harris-Madden said, “The tremendous investments that Governor Hochul has made in the mental health system is responsive to the growing needs for supports, services, and opportunities for those who require intervention, as well as individuals who are critical to the system’s workforce. With one in five people in the U.S. suffering from mental health disorders - and alarming rates of youth and children with high-acuity needs - it is necessary to build the career pipeline to support the mental health system. Our mental health professionals are a critical part of supporting the comprehensive well-being of children and youth. OCFS supports the aims of the governor and the Office of Mental Health to bolster the mental health workforce by extending the Community Mental Health Loan Repayment Program to licensed professionals serving children and adolescents in OCFS licensed programs.”

An additional $3 million is available for eligible professionals employed by OMH-licensed providers, including comprehensive psychiatric emergency programs, residential treatment facilities, assertive community treatment teams, children’s day treatment, mental health outpatient treatment and rehabilitative services and crisis stabilization centers. This funding is remaining from previous rounds of the program and will support at least 120 awards, including 60 psychiatrists and 60 psychiatric nurse practitioners or psychiatric physician assistants.

So far, the program has provided roughly $9.6 million annual loan repayment on behalf of 909 community mental health program employees. This includes 77 psychiatrists, 164 psychiatric nurse practitioners and physician assistants and 668 licensed mental health practitioners.

Governor Hochul established the loan repayment program in 2022 with $9 million in state funding to help community mental health agencies recruit and retain psychiatrists and psychiatric nurse practitioners. The program was expanded in 2023 with an additional $5 million, allowing licensed mental health professionals to apply for awards.

Nationally, rising rates of mental illness and substance use disorder have created heightened demand for psychiatrists and other mental health professionals, a need that is expected to outpace growth of this area of the workforce. Based on findings from the Center for Health Workforce Studies, New York State is projected to have a shortfall of between roughly 1,180 and 2,650 psychiatrists by 2030.

The expansion of the loan repayment program reflects Governor Hochul’s steadfast commitment to addressing and improving youth mental health statewide. Her FY 2026 Executive Budget will expand Teen Mental Health First Aid training for high school students to help them respond to signs of mental health and substance use challenges; and will add four Youth Safe Spaces across the state to provide a place for young people to access behavioral health wellness resources.

As part of her landmark $1 billion mental health initiative, Governor Hochul has also significantly expanded access to mental health care and resources for young people and their families –investments that were increased again in the FY25 Enacted Budget. These investments include $20 million in start-up funding and a rolling application process for school-based mental health clinics; and providing $9.6 million to add 12 new Youth Assertive Community Treatment to ensure resources and support are available for more families.

State Senator Samra G. Brouk said, “As Chair of the Senate Committee on Mental Health, I have actively worked to address the statewide youth mental health crisis while supporting the mental health workforce. I have been fighting to increase support for individuals providing lifesaving care with my legislation to establish a school-based mental health loan repayment program that aids youth mental health practitioners. I applaud Governor Hochul for expanding the Community Mental Health Loan Repayment Program to help our mental health workers continue to deliver high-quality, compassionate services for our young New Yorkers.”

Assemblymember Andrew Hevesi said, “I'm grateful to Governor Hochul for expanding the Community Mental Health Loan Repayment Program. This loan forgiveness program helps ensure we have enough qualified professionals to meet the mental health crisis facing our state, particularly impacting our children.”

Assemblymember Jo Anne Simon said, “Addressing the youth mental health crisis starts with investing in the professionals who are on the front lines, providing essential care and support. Expanding loan forgiveness is a critical investment in our future, strengthening the pipeline of diverse mental health professionals. This will help ensure that young people across New York get the targeted and timely care they need and deserve."

Governor Hochul also established the Youth Mental Health Advisory Board, a 30-member advisory board which includes youth between the ages of 11 and 17. The advisory board convenes quarterly and is designed to ensure that youth-informed best practices continue to be incorporated in developing behavioral health programs and policies.

New York State Council for Community Behavioral Healthcare Executive Director Lauri Cole said, “The 165 members of the New York State Council for Community Behavioral Healthcare applaud Governor Hochul and our tireless colleagues at the Office of Mental Health for having the vision to deliver this important expansion of a critical loan repayment program that focuses on the mental health needs of children, youth and families so we can recruit and retain the workforce needed to serve them. Few things could be more important than ensuring these New Yorkers have quick access to services at a level of care best suited to meet their needs. That can only happen if we incentivize psychiatrists, psychiatric nurse practitioners, licensed mental health practitioners and others who want to make a difference in the lives of these New Yorkers, but who are often saddled with unmanageable debt.”

New York State Council of Family and Child Caring Agencies President and CEO Kathleen Brady-Stepien said, “We thank the Governor for prioritizing the mental health needs of youth in the state, and for recognizing the critical importance of the role of our child welfare workforce in the behavioral health spectrum. We are thrilled to see this investment to support staff in achieving their higher education and career goals, as a stable and well-trained workforce is crucial for ensuring quality services, positive outcomes for our children and families, and reduced lengths of stay in foster care.”

New York State Coalition for Children’s Behavioral Health President and CEO Kayleigh Zaloga said, “We greatly appreciate the prioritization of child-serving practitioners, and the inclusion of providers licensed by OCFS in this expansion of the Community Mental Health Loan Repayment Program. It is a welcome step toward strengthening the children's behavioral health workforce by investing in the practitioners that youth and families rely on. Easing the financial burden of student loan debt is a meaningful benefit that will enable more licensed practitioners to remain in the programs that need them, at a time when community need for behavioral health services continues to rise. As a field largely composed of women, we also want to highlight the value of investing in the children’s behavioral health workforce as a strategy for supporting women’s economic stability at the same time as improving children and families’ access to care.”