Board of Psychology hears overview of LMH scholarship program; funding limits leave many applicants unrewarded

SACRAMENTO, Calif. — The California Board of Psychology on Feb. 28 received a presentation from Michelle Crouch of the state's Health Care Access and Information unit outlining the Licensed Mental Health (LMH) services provider education program, including eligibility, recent award totals and application requirements.

The LMH program provides awards of up to $15,000 to licensed mental health professionals who commit to a 12‑month service obligation at an eligible facility, staff said. "This program was established in 02/2007 to increase the supply of mental health professionals practicing in mental health professional shortage areas and qualifying facilities," Michelle Crouch said during the presentation.

Board members were told the program is funded in part by licensure fees and has a statutory spending cap shared with the Board of Behavioral Sciences. Staff said the fund is capped at $693,000 and that, as of September 2024, $234,540 in licensure fees from the Board of Psychology had been deposited and used in the most recent cycle. In the 2024–25 award cycle, staff reported, the program received 936 applications and awarded 46 applicants. "We were able to award 46," Crouch said, adding that the number awarded was lower than in previous years because of limited funding.

Eligibility and application. According to staff, LMH applicants must be currently licensed in one of the eligible professions, which include associate or licensed clinical social workers, marriage and family therapists, and psychologists, and must provide at least 32 hours per week of direct client care at an eligible practice site. Eligible sites include federally designated health professional shortage areas as well as qualifying facilities such as children's hospitals, correctional facilities, county health facilities and public schools. Applicants must submit an online application and supporting documents including an employer-signed employment verification form, a lender statement showing educational debt balance and a conflict-of-interest disclosure if previously employed by the state.

Award details and program history. Staff noted the program formerly required a 24‑month service obligation; that has been reduced to 12 months and the maximum award is $15,000. Crouch said an applicant will never be awarded more than their outstanding educational debt. She also listed related programs available to psychologists, including the state loan repayment program and scholarship offerings for assistant psychologists and licensed clinical psychologists.

Board member questions and outreach. Board members pressed staff on whether the licensure fee increase enacted by the Legislature in 2022 had altered the program cap or the available funding. "I'm just concerned because there's such a behavioral health profession shortage in the state," said Dr. Heather Cooper, a board member, as she asked about application numbers and awarded amounts. Staff said they were not certain about all historical details but noted that the fund receives licensure fees and that funding availability has varied from year to year.

On outreach, a board member suggested more promotion of the program. Crouch said staff would work with the board to place a recipient testimonial and application-cycle reminders in the board newsletter and on social media. "I'll be happy to include you in the newsletter," Crouch said.

Reporting and sustainability. Jonathan Nazario, manager of the unit that runs the program, told the board the unit provides reports to the Legislature on program activity when requested. Board members asked whether unspent licensure fee revenue could be reallocated; staff said licensure-fee funds do not roll over and the program must operate within the statutory limits and the $693,000 cap shared between the two boards.

Next steps and application timing. Staff indicated the application cycle typically opens May 1 and that contracts generally execute in September. Board members asked staff to share summary statistics after the application cycle closes so the board can see where recipients practice and whether the program meets its goal of placing providers in shortage areas.

The board did not take formal action on the LMH program at the meeting.