Background: School health services improve health and academic outcomes; however, sustainable funding for these services is an ongoing struggle. In December 2014, the Centers for Medicare & Medicaid Services clarified how Medicaid will reimburse school health services. School districts, once restricted to reimbursement for services delivered under specific conditions, can now receive Medicaid reimbursement for eligible services delivered to all Medicaid-enrolled students. Methods: This article examines the literature exploring school health services' impact on health and academic outcomes and Medicaid's role in funding school health services. The article analyzes state, school-based Medicaid policies and programs and the impact of the federal policy change. Results: As of August 2020, 13 states have used the federal policy change to expand their school-based Medicaid programs to include all eligible services delivered to all Medicaid-enrolled students. Conclusions: This policy change creates an opportunity for states and school districts to leverage health care funding to implement multiple components of the Whole School, Whole Community, Whole Child model, including health services, counseling, psychological and social services, employee wellness, and school climate. The federal policy change can also improve health equity by increasing reimbursement for school districts serving higher percentages of Medicaid-enrolled students.