The bill H.323 seeks to improve mental health support for youth in Vermont by creating the Mental Health Innovation Special Fund, which will finance initiatives such as a mental health screening program in schools, a behavioral health innovation grant program, and a peer-to-peer mental health support program. This fund will be established under 18 V.S.A. § 7116 and will be funded through revenues from the Department of Taxes and other contributions. The bill also introduces a mental health and substance misuse literacy curriculum to be developed by the Agency of Education in collaboration with the Departments of Health and Mental Health, and mandates that supervisory unions provide evidence-based mental health screening services under 16 V.S.A. § 1433.

Additionally, the bill outlines a framework for peer-to-peer mental health services in schools, emphasizing the role of certified peer support providers and the necessity for training in empathetic listening and recognizing mental health challenges. The Agency of Education will accept grant applications for these programs starting August 1, 2026, prioritizing schools with suicide prevention components or those in high-risk areas. A report evaluating the program's effectiveness is required by January 1, 2030, and $10,000 is appropriated from the Mental Health Innovation Special Fund for fiscal year 2027 to support these initiatives. The act is set to take effect on July 1, 2025.