Judge orders Trump admin to restore blocked school mental health funds

The Trump administration must release millions of dollars in grants meant to address the shortage of mental health workers in schools, a federal judge ruled on Monday.

The decision stems from a lawsuit filed by sixteen Democratic-led states challenging the Education Department’s move to halt funding for a program designed to expand school-based mental health services.

Congress had created and funded the program after the 2022 school shooting in Uvalde, Texas, aiming to help schools hire more counselors, psychologists, and social workers — especially in rural and underserved areas.

The Biden administration initially awarded the grants, prioritizing applications that proposed to increase the number of counselors from diverse backgrounds or from the same communities served by the schools. However, when Donald Trump took office, his administration objected to what it described as “diversity-based” criteria and ordered that the grants be cut off after December 2025.

In April, Trump officials argued that the grant conditions conflicted with the department’s focus on “merit, fairness, and excellence in education,” saying they were not in the “federal government’s best interest.”

Judge rules Trump’s cuts were ‘arbitrary and capricious’

U.S. District Court Judge Kymberly K. Evanson of Seattle disagreed, calling the decision “arbitrary and capricious.” In her preliminary ruling, Evanson said the Education Department failed to consider the real-world harm the cuts would cause and did not provide evidence to justify its decision.

“Congress created these programs to address the states’ need for school-based mental health services and has repeatedly reaffirmed the need for those services over the years by reauthorizing and increasing appropriations,” Evanson wrote in her opinion.

“There is no evidence the Department considered any relevant data pertaining to the Grants at issue,” she added, noting that officials never explained why the grantees’ work did not meet the so-called “best interest” criteria.

Immediate impact in multiple states

The ruling currently applies to the sixteen states that joined the lawsuit. In California alone, the decision restores nearly $12 million in funding — including about $3.8 million in Madera County and $8 million in Marin County.

In Maine, state officials said the grants had enabled nine rural school districts to hire ten new mental health professionals and retain four more. Without the funding, those jobs would likely disappear, leaving hundreds of students without consistent access to counseling services.

The restored funds will remain available while the case proceeds through the courts.

Background on the program

The mental health grant initiative was established in response to mounting concern over rising youth depression, anxiety, and suicide rates — problems that worsened after the COVID-19 pandemic and a series of deadly school shootings.

Lawmakers from both parties supported the original legislation, framing it as a nonpartisan investment in student well-being and school safety.

Under the Biden administration, the Education Department sought to direct funding to applicants that could demonstrate efforts to diversify the school mental health workforce, arguing that students often benefit from counselors and psychologists who share similar backgrounds or community experiences.

Trump’s Education Department, however, rejected that approach, asserting that race-based considerations were discriminatory and inconsistent with federal hiring standards.

Political and legal implications

The ruling represents an early legal setback for the Trump administration as it reexamines and rolls back several Biden-era education and health policies.

Legal experts say the case could have broader implications for how future administrations interpret “diversity” in federally funded programs, particularly in the wake of the U.S. Supreme Court’s 2023 ruling restricting affirmative action in college admissions.

For now, the decision means that school districts depending on the grants can continue their mental health initiatives — at least temporarily.

An Education Department spokeswoman did not immediately respond to a request for comment on whether the administration plans to appeal.

State officials, meanwhile, hailed the ruling as a victory for students and educators struggling to meet the growing demand for school-based mental health care.

“This funding is not about politics — it’s about saving lives and supporting our children,” one California education official said. “Today’s decision ensures that critical mental health positions remain in place.”