Federal judge halts mental health grant terminations, again: 7 notes

A federal judge temporarily blocked the U.S. Department of Education from terminating school mental health grants in 15 states, finding the states are likely to succeed on claims that the department’s planned grant terminations violate federal law. The temporary restraining order preserves the grants while the litigation proceeds.

1. Judge blocks planned grant terminations. The U.S. District Court for the Western District of Washington granted a temporary restraining order preventing the Education Department from moving forward with its planned termination of school mental health grants.
   
   
2. 15 states brought the lawsuit. The plaintiff states challenged the department’s plan to terminate grants supporting school-based mental health services no earlier than July 31, 2026.
   
   
3. Court found states are likely to prevail. The judge concluded the states are likely to succeed on Administrative Procedure Act claims that the department’s actions are arbitrary, capricious and contrary to law.
   
   
4. Priorities behind the review were questioned. The order said the department appeared to be evaluating previously approved grants against new administration priorities that were not in place when the grants were awarded.
   
   
5. Procedural protections were central to the ruling. The court found the department likely could not terminate the grants without first providing procedural protections required under federal statutes and regulations.
   
   
6. The injunction applies to grants covered by a permanent injunction the same court entered Dec. 19, 2025, in a related case. The order bars the department from implementing the challenged termination plan and requires it to notify affected grantees of the ruling.
   
   
7. The TRO is temporary. The order remains in effect until Aug. 24, 2026, while the court considers whether to issue a preliminary injunction.

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