A federal court has blocked the Trump Administration’s plans to unilaterally terminate mental health grants that school districts and states use nationwide to address shortages of mental health professionals, especially at low-income and rural schools.

Background

The grants were created through the School-Based Mental Health Services Grant Program of 2018 and the Mental Health Service Profession Demonstration Grant Program of 2020, which issued the grants to fund scholarship and clinical training for graduate students as well as subsidize the salaries of mental health professionals hired by states and local education agencies.

The U.S. Department of Education administers the grants, some on a multi-year basis. In April 2025, many program multi-year grantees received notices of non-continuation. On June 30, 2025, 16 states filed suit against the termination of the mental health grants by the Department of Education.

Court Ruling

The U.S. District Court for the Western District of Washington granted a temporary restraining order after attorneys general from 15 states sued over the terminations, alleging the action violated the Administrative Procedures Act, the General Education Provisions Act, and the U.S. Constitution’s Spending Clause.

The court ruled that the Department of Education’s termination plan is likely arbitrary and capricious and contrary to law, and thus violates the Administrative Procedures Act.

Original reporting: KEYT (Ventura/Santa Barbara) — read the source article.