States sue over planned cuts to school mental health grants

A group of more than a dozen state attorneys general is suing the Department of Education (DOE) for what they claim to be the unlawful termination of congressionally approved mental health grants for public school students.

The lawsuit filed on Friday was done so “protectively” essentially to back up a prior lawsuit filed by states in which a federal judge issued an injunction on a plan by the department to terminate the grants. The grants in question were awarded for a five-year project period, with funding doled out year-by-year through continuation grants.

In April 2025, the Education Department implemented plans to discontinue the program grants on the basis that they conflicted with the administration’s current priorities.

U.S. District Judge Kymberly Evanson has since granted a permanent injunction on the plan, agreeing with plaintiff states that it was “arbitrary and capricious” under federal law.

Despite this motion, the department has indicated it still intends to terminate “some or all” of the grants at the end of July, if their motion for clarification on the injunction goes in their favor.

“Plaintiff States bring this Complaint protectively, because while the Washington injunction should prevent the Department from implementing the vacated and enjoined Directive procedure ‘through any means,’ including termination, Washington, Dkt. # 269, the Court might hold otherwise, leaving the grants vulnerable to immediate and unlawful termination,” the suit stated.

“When a student is having mental health concerns—or is in crisis—they need to have trusted counselors at their school who can help them navigate those tough times,” Oregon Attorney General Dan Rayfield (D) said in a statement. “The Trump administration is once again trying to strip mental health support from students who need it most – and once again, we’re taking them to court to stop it.”

New York Attorney General Letitia James (D) added in a statement that “the first time this administration tried to take mental health services away from children, we beat them in court.”

“Now they are trying to carry out the same illegal scheme and abandon students who need support,” she said. “We already stopped them once, and we are prepared to do it again. My office will keep fighting to protect our children’s mental health and ensure schools have the resources to hire counselors, social workers, and psychologists in communities that need them most.”

Plaintiff states are asking for a court hearing on July 24 over whether a preliminary injunction or temporary restraining order should be issued and also declare the department’s plans to be unlawful.

Plaintiffs in the lawsuit include the attorneys general for California, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, New Mexico, New York, Rhode Island, Washington and Wisconsin.

The Hill has reached out to the DOE for a response to the lawsuit.