Assembly Bill 342 aims to establish 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 for this purpose. It 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.

The bill also grants the Department the authority to promulgate rules necessary for the implementation of the grant program. The new legal provisions created by this bill include sections 20.255 (2) (dv) and 115.369, which outline the grant program's structure and the definitions relevant to the hiring of mental health professionals. 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.