Counseling Not Criminalization in Schools Act This bill prohibits the use of federal funds for sworn law enforcement officers in schools. It also establishes a grant program to replace sworn law enforcement officers in schools with personnel and services that support mental health and trauma-informed services. Specifically, the bill prohibits the use of federal funds to hire, maintain, or train sworn law enforcement officers in elementary or secondary schools, preschools, or programs based in elementary or secondary schools. Further, it prohibits the use of public safety and community policing grants for sworn law enforcement officers who operate in and around elementary and secondary schools. Additionally, the bill directs the Department of Education to award grants to local educational agencies to (1) replace sworn law enforcement officers in elementary and secondary schools with personnel and services that support mental health and trauma-informed services, and (2) reform school safety and disciplinary policies to reflect evidence-based practices that do not rely on the criminal justice system. A recipient must use grants funds to carry out certain activities, such as hiring or training specified staff, implementing trauma-informed services, and providing professional development to teachers and staff. It prohibits the use of grant funds for (1) establishing or enforcing zero-tolerance school discipline policies, (2) purchasing or installing surveillance equipment (e.g., metal detectors), or (3) arming teachers or other school personnel.