School-based health services (SBHS) are a convenient, powerful, yet underused strategy to meet student needs and increase equitable access to healthcare. At a time when the nation is combating a youth mental health crisis and federal education funding is at an all-time high, state leaders can do more to leverage federal funding streams, partnerships, policies, and capacity building to expand SBHS. This policy update discusses federal funding available in support of school health, state strategies for supporting health services in schools, and what state leaders can ask to examine the extent to which their state is leveraging federal funding for SBHS.