New York’s expanded loan repayment program aims to attract and retain mental health professionals to help tackle youth mental health challenges, with a focus on high-need areas and programs

Albany, New York – Governor Kathy Hochul has announced a significant expansion of New York’s Community Mental Health Loan Repayment Program, allocating an additional $4 million to support mental health professionals working with children and adolescents. This expansion aims to address the growing demand for youth mental health services by helping professionals repay student loans, provided they commit to at least three years of service in eligible programs.

With this expansion, at least 400 new awards of up to $30,000 will be available to licensed mental health professionals working in programs funded or licensed by the Office of Mental Health (OMH) and the Office of Children and Family Services (OCFS). This includes clinical social workers, mental health counselors, marriage and family therapists, and other qualified professionals. Psychiatrists, who are in particularly high demand, will continue to be eligible for loan repayment awards of up to $120,000.

Governor Hochul emphasized that strengthening New York’s mental health workforce is essential to ensuring that children and youth have access to the care they need.

“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 expansion of the program comes at a time when youth mental health concerns are reaching crisis levels. National studies indicate a rising prevalence of anxiety, depression, and other mental health challenges among young people, exacerbated by the lasting effects of the COVID-19 pandemic. Governor Hochul’s administration has made youth mental health a priority, investing in services that provide direct support to children and families.

Eligible providers under the expanded loan repayment program include a variety of community-based mental health services tailored for youth. This includes children’s day treatment programs, community residences for eating disorder treatment, Home-Based Crisis Intervention programs, and foster care mental health services. Additional funding will also support professionals working in crisis stabilization centers, psychiatric emergency programs, and outpatient treatment facilities.

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”

This latest funding builds upon Governor Hochul’s broader investments in mental health, which include a $1 billion initiative to expand care across the state. Previous rounds of the loan repayment program have already provided nearly $9.6 million to more than 900 mental health professionals, including psychiatrists, psychiatric nurse practitioners, and licensed therapists.

The governor’s FY 2026 budget proposal continues this momentum by expanding Teen Mental Health First Aid training in high schools and establishing four new Youth Safe Spaces to provide behavioral health resources. Additionally, $20 million has been allocated to support school-based mental health clinics, ensuring that more children have access to care where they need it most.

As demand for mental health services continues to grow, New York’s commitment to supporting and retaining its mental health workforce remains steadfast. Governor Hochul’s expansion of the loan repayment program is yet another step toward building a robust system that prioritizes the well-being of children and families across the state.