Assembly Bill 342 aims to create a grant program administered by the Department of Public Instruction to support school districts in hiring mental health professionals who are members of racial minority groups. The bill allocates $5,000,000 for each of the fiscal years 2025-26 and 2026-27 specifically for these grants. The legislation defines a "member of a racial minority group" to include individuals who identify as Black American, American Indian or Alaskan Native, Hispanic, Asian or Pacific Islander, or those with mixed racial ancestry.

Additionally, the bill grants the Department the authority to promulgate rules necessary for the implementation of the grant program. The new sections created by this bill include 20.255 (2) (dv) and 115.369, which outline the purpose and administration of the grant program. The act is set to take effect the day after its publication or on the second day after the publication of the 2025 biennial budget act, whichever occurs later.