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New York gives boost to mental health workers with expanded loan repayment program

Governor Kathy Hochul has announced an expansion of the Community Mental Health Loan Repayment Program, increasing the fund by $5 million to enhance New York State’s mental health care workforce. The Office of Mental Health administers the now $14 million program, aiming to recruit and retain skilled mental health professionals amidst statewide staffing shortages and rising demand for mental health services.


The expanded program offers up to $120,000 in loan repayment to psychiatrists and up to $30,000 for other mental health professionals, provided they commit to three years of employment in licensed community mental health programs. The initiative now includes a broader range of licensed mental health professionals, such as social workers, mental health counselors, and psychologists. This increase is part of Governor Hochul’s $1 billion initiative to improve the state’s mental health care continuum, with 500 new awards planned, including 200 specifically to enhance workforce diversity.

The program, established in 2022 with $9 million in funding, initially focused on psychiatrists and psychiatric nurse practitioners, extending to psychiatric physician assistants earlier this year. With a national increase in mental health and substance use disorders, New York State is projected to face a significant shortfall of psychiatrists by 2030. Governor Hochul’s multi-year mental health care plan is set to expand services, particularly for children and youth, necessitating a more robust and diverse mental health workforce. Health leaders across the state have lauded the program’s expansion, recognizing it as a critical step in bolstering the mental health system and ensuring comprehensive care for New Yorkers.