Amends the Elementary and Secondary Education Act of 1965 to establish a program to assist States and local educational agencies (LEAs) to recruit, train, and hire additional school-based mental health and student service providers, including additional school counselors, psychologists, and social workers (in order to reduce the student-to-counselor ratios nationally, in elementary and secondary schools, to an average of one school counselor for every 250 students, one psychologist for every 1,000 students, and one social worker for every 800 students, as recommended in a report by the Institute of Medicine of the National Academy of Sciences relating to schools and health).
Directs the Secretary of Education, after reserving certain funds for schools in outlying areas and schools run by the Bureau of Indian Affairs, to make program allotments to States according to a specified formula. Requires States to allocate funds from Federal and State shares of program costs to LEAs according to specified formulae.