Strengthening Health Integration iN Education for Kentucky Students (SHINE KY) Grant Program

The SHINE KY Local Grants program is administered by the Kentucky Cabinet for Health and Family Services (CHFS), through the Department for Medicaid Services (DMS). It aims to improve and expand school-based behavioral health services across the Commonwealth of Kentucky. This funding opportunity supports local education agencies (LEAs) in enhancing infrastructure, workforce, and outreach capabilities to ensure Medicaid-eligible students can access quality behavioral health care within school settings. The initiative is part of the broader Strengthening Health Integration iN Education for Kentucky Students (SHINE KY) effort, developed in collaboration with multiple state agencies and educational stakeholders to address systemic barriers in the school-based Medicaid program. This grant is made available under a cooperative agreement awarded to Kentucky DMS by the Centers for Medicare & Medicaid Services (CMS) through the Bipartisan Safer Communities Act. The state was awarded $2.5 million for 36 months starting in July 2024 to improve implementation and expansion of Medicaid services in schools. Findings from a statewide needs assessment highlighted key challenges in program delivery, including limited billing knowledge, staffing shortages, technology deficits, and stigma or misinformation around school-based services. The SHINE KY local grants aim to tackle these issues directly through targeted capacity-building interventions. The grant supports projects in three main programmatic areas: (1) workforce capacity and training, (2) technology adoption and enhancement, and (3) program expansion partnerships and education. LEAs may apply for up to $250,000 to implement sustainable strategies in one of these areas. Allowable activities include hiring non-billable administrative staff, funding staff training in care coordination and billing practices, adopting telehealth platforms, enhancing documentation and billing systems, and launching outreach campaigns to improve Medicaid enrollment and service uptake. Applicants are encouraged to propose innovative ideas beyond the listed examples, provided they support the NOFO’s objectives and comply with funding guidelines. The application process includes a required Notice of Intent to Apply, due by February 27, 2026, followed by a full application due March 13, 2026, by 5:00 PM ET. An optional informational webinar will be held on February 23, 2026, and applicants may submit questions by February 13, 2026. All materials must be submitted via email to [email protected]. The grant period runs from July 1, 2026, to June 30, 2027. Selected applicants will be notified by May 1, 2026, and must await contract execution before beginning activities. Applications are reviewed competitively, with selection based on criteria including organizational capacity, demonstrated need, clarity of project goals, and alignment with SHINE KY’s objectives. Rural districts and those with limited capacity are particularly encouraged to apply. Projects must include a sustainability plan to ensure long-term impact beyond the grant period. Technical assistance will be provided throughout the implementation phase, and monthly progress reporting is required. A final report is due within 90 days after the grant period ends, summarizing accomplishments, challenges, financial use, and sustainability efforts. This funding opportunity is only open to Kentucky LEAs and regional collaborations. Applicants must either be enrolled or show proof of application for Medicaid “Expanded Access” provider status. Funds may not be used to support salaries for billable healthcare providers, construction, lobbying, or unrelated costs. DMS will evaluate proposals using a standardized rubric to ensure alignment with program goals and fiscal accountability.

Focus on sustainability, measurable outcomes, and multi-agency collaboration; exclude provider salaries from budget.