Opportunity Overview
The Michigan Department of Education has issued Fiscal Year 2027 guidance for Section 31aa student mental health and school safety funding. Unlike the separate FY26 competitive Section 31aa(4) and 31aa(5) programs, FY27 Subsection 2 mental health funding and Subsection 3 school safety funding are noncompetitive formula funds. MDE states that all eligible entities that choose to apply will receive funding, although the final per-pupil amount may be lower than the statutory cap depending on the number of submissions.
Funding
FY27 mental health funding under Subsection 2 is capped at $73.53 per pupil. FY27 school safety funding under Subsection 3 is capped at $147.06 per pupil. Applicants may apply for both funding streams through the same NexSys process. MDE states that entities may apply only once.
Application Windows and Submission
Applications are housed in NexSys and accessed through MiLogin. MDE lists four application windows, each closing at 5:00 p.m. Eastern Time:
- November 9, 2026 for the December State Aid payment. MDE notes that this date may be adjusted based on when the application is finalized and made available.
- December 7, 2026 for the January State Aid payment.
- January 4, 2027 for the February State Aid payment.
- April 12, 2027 for the May State Aid payment.
The expenditure period begins October 1, 2026. FY27 funds generally must be spent by September 30, 2027, but recipients may request an additional fiscal year through the required reporting process, extending the expenditure period to September 30, 2028.
Eligibility
MDE defines an eligible district for this funding as a Michigan public school, public school academy, intermediate school district or RESA, nonpublic school, or the Michigan School for the Deaf. Only K-12 students may be served with Section 31aa funds. Nonpublic schools must have an approved NexSys account, be registered in SIGMA, and complete the required annual Nonpublic School Membership Report.
Allowable Mental Health Uses
Allowable FY27 mental health uses include hiring or contracting psychologists, social workers, counselors, nurses, community health workers, and marriage and family therapists; mental health screening tools; an integrated technology platform for behavioral-health documentation and care coordination; clinician consultation for complex student mental-health needs; licensed-clinician-led online behavioral-health tools; behavioral-health coordinators; evidence-based mental-health training; collaboration and resource coordination; school mental-health needs assessment and resource mapping; cell-phone-free school policies; and qualifying evidence-based character and relationship-building education programs.
Allowable School Safety Uses
Allowable FY27 school safety uses include law-enforcement coordination; threat-assessment, threat-response, and crisis-communication training; safety infrastructure such as cameras, door blocks, hardened vestibules, window screening, buzzer-system technology, and firearm-detection software using existing cameras; school resource officers; contracted safety dogs that meet the statutory definition; student-safety management technology and services; specified secure school-safety platforms; approved emergency infrastructure; vendor-conducted safety and security assessments; and emergency response systems.
Certifications and Reporting
Recipients must complete an expense report by July 1, 2027, return funds used for unallowable expenses, and coordinate with their intermediate district to avoid duplication and streamline services. Subsection 3 school safety recipients must also agree to the statutory comprehensive-investigation requirements associated with a mass-casualty event. MDE allows third-party contracting and permits braiding these funds with other funding sources.
Budget and Match
MDE instructs applicants initially to use only the NexSys budget line indicating that the district wants to receive the funds. In spring 2027, applications will be returned for amendment so recipients can report actual expenditures. The FY27 FAQ does not identify a mandatory applicant match or cost-share requirement.
Atlas Strategic Analysis
Atlas assistance fit is extremely strong. This is noncompetitive funding with defined per-pupil caps, exact submission times, multiple application windows, broad Michigan K-12 eligibility, and a wide range of allowable mental-health and school-safety uses. The strongest Atlas value is helping eligible schools confirm readiness, map allowable projects to local need, document applicant-controlled facts, organize procurement and contracting requirements, and prepare the NexSys submission without introducing unsupported costs.
N9+ fit is not established by the FY27 allowable-use list and should not be forced. Any technology or clinical-service use would require a direct, defensible connection to an expressly allowable Section 31aa purpose and applicant-specific procurement rules. QC Healthcare or Dr. Miltie direct-vendor relevance should likewise be treated as applicant- and service-specific and escalated to Marc when a true vendor opportunity is identified.
Current Action
Eligible Michigan schools should prepare now for the earliest available NexSys application window, confirm that their NexSys and payment registrations are current, identify eligible mental-health and school-safety priorities, coordinate with their ISD, and preserve documentation supporting allowable expenditures. The first listed deadline is November 9, 2026 at 5:00 p.m. Eastern Time, but MDE states that this November date may be adjusted based on when the application is finalized.
Verified source: Michigan Department of Education FY27 Section 31aa FAQ.