Michigan Attorney General Dana Nessel has joined 14 other state attorneys general in filing a lawsuit to prevent the U.S. Department of Education from terminating congressionally approved school-based mental health grants at the end of July. The grants, which stem from a bipartisan congressional appropriation of $1 billion, aim to hire 14,000 mental health professionals for high-need elementary and secondary schools, particularly in low-income and rural areas.

Background of the Dispute

The dispute began in April 2025, when the Department of Education notified grantees that the funding would be discontinued due to conflicts with the administration’s new policy priorities, later citing concerns over perceived support for diversity, equity, and inclusion (DEI) initiatives. The coalition of states filed a lawsuit in July 2025 in the U.S. District Court for the Western District of Washington, which resulted in a permanent injunction declaring the discontinuations unlawful and prohibiting the department from implementing them.

Despite the court order, the Department of Education has announced plans to terminate the grants entirely at the end of July, prompting the multi-state coalition to allege that the department is using the term “termination” rather than “discontinuation” to circumvent the December 2025 court order. The newly filed lawsuit alleges that the Department of Education’s termination plan violates the Administrative Procedure Act and the U.S. Constitution.

Impact on Michigan Schools

The termination of the grants would impact more than $6 million in funding designated for Michigan schools and universities. According to state officials, the funding has provided services to nearly 775,000 students nationwide, resulting in reported decreases in suicide risk, absenteeism, and behavioral issues.

Original reporting: Tampa Free Press — read the source article.