Federal Judge Blocks Education Department From Ending School Mental‑Health Grants

Overview

• A U.S. District Court in the Western District of Washington granted a temporary restraining order on Monday that stops the Department of Education from terminating multi‑year school mental‑health grants through August 24, 2026 and required written notice of compliance within 24 hours.
• A coalition of 15 state attorneys general led publicly by California Attorney General Rob Bonta sued after the Department issued new June termination notices that rely on 2 C.F.R. § 200.340 to end the grants.
• Judge Kymberly K. Evanson found the Department’s termination plan likely violates the Administrative Procedure Act because it appears arbitrary, capricious, and contrary to law and implicated failures in required notice and review procedures.
• The injunction keeps Congress‑created programs that fund school counselors, psychologists and training in low‑income and rural districts active while the court considers a preliminary injunction, preventing immediate disruption to student services and staff pay.
• Beyond the immediate funding impact, the case tests whether the Department can use unpublished internal priorities and the termination rule in 2 C.F.R. § 200.340 to end congressionally authorized grants and could limit agency discretion over future grant administration.