Education Funding

Amid Cancellations and Legal Fights, Trump Admin. Awards New Mental Health Grants

The awards follow the termination of previously awarded grants and months of uncertainty
By Matthew Stone — December 11, 2025 3 min read
Image of hands taking care of a student with a money symbol in the background.
  • Save to favorites
  • Print

The U.S. Department of Education on Thursday announced 65 new grant awards to boost school mental health services, the latest development in a seven-month saga that has involved the cancellation of more than 200 previously awarded grants and legal efforts to reverse those terminations.

The agency said it’s awarding more than $208 million to boost the ranks of school psychologists working in schools and training for future school psychologists. It didn’t identify the grant recipients in a news release, but said 33 serve rural areas and that rural areas account for more than $120 million of the grant funding.

School districts and state education departments were eligible to apply for the grants under competitions the Education Department launched in late September. One competition was for grants to help schools hire and retain mental health professionals—in this case, school psychologists. The other was to fund training initiatives for future school psychologists.

See Also

Illustration of dollar symbol in rollercoaster.
iStock

The new awards cap off seven months during which grant recipients who received awards from the Biden administration received surprise notices that their funding would end. In some cases, those notices came just months into their five-year initiatives. The awardees scrambled to preserve their funding by unsuccessfully appealing to the Education Department, seeking help from congressional representatives, and launching legal challenges.

In April, the Trump administration had sent notices to 223 grant recipients—of 339 with active projects—telling them their work reflected Biden administration priorities and that their projects were now “inconsistent” with “the best interest of the federal government.” The notices told the grantees their funding would end Dec. 31.

The grant terminations were an early example of the new Trump administration cutting projects that it claimed promoted diversity, equity, and inclusion—principles the administration has opposed across many education programs. Grantees during the Biden administration had to show how their efforts would boost the diversity of mental health professionals and the number of them who come from the communities they’re serving in schools.

As it discontinued the in-progress awards, the Education Department pledged to launch a new grant competition and award the reclaimed funds by the end of the year. In a statement Thursday, Education Secretary Linda McMahon noted that earlier “there was doubt” the administration could issue new awards by that deadline.

But, she said, “we are proud to announce we did exactly that. Today, over $200 million is being awarded directly to states and school districts to support student mental health—a meaningful win for our education system.”

The Education Department launched the new grant competitions in late September, limiting the funds to focus only on boosting the numbers of school psychologists rather than the full range of mental health specialists the previous awards supported. Also gone was the Biden-era preference for applicants who focused on boosting the specialists’ diversity. Universities—which carried out many of the training initiatives—were also excluded from this new competition.

See Also

Protesters gather at the State Capitol in Salem, Ore., on Feb. 18, 2019, calling for education funding during the "March for Our Students" rally.
Protesters call for education funding in Salem, Ore., on Feb. 18, 2019. The Trump administration has relaunched two school mental health grant programs after abruptly discontinuing the awards in April. Now, the grants will only support efforts to boost the ranks of school psychologists, and not school counselors, social workers, or any other types of school mental health professionals.
Alex Milan Tracy/Sipa via AP

Meanwhile, legal challenges created some uncertainty about the new awards.

In late October, a Seattle-based federal judge ruled in response to a lawsuit from 16 Democratic state attorneys general that the April termination notices were likely invalid because they contained no individualized reasoning for stopping the in-progress grants.

Her order blocked the notices for 49 grantees out of the 223 nationwide whose projects the administration planned to end.

As it stands now, those 49 grantees are still on track to have their funding continued past Dec. 31. The $208 million awarded Thursday falls short of the $270 million the administration estimated it would give out when it launched the grant competitions in September, likely preserving money for those grantees.

Meanwhile, legal proceedings continue in the 16-state lawsuit challenging the April terminations, with a hearing on Thursday.

The Trump administration is also asking an appeals court to reconsider a Dec. 4 opinion by three of its judges that upheld the lower court order blocking the 49 grantees’ cancellation notices.

Events

This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
School & District Management Webinar
Too Many Initiatives, Not Enough Alignment: A Change Management Playbook for Leaders
Learn how leadership teams can increase alignment and evaluate every program, practice, and purchase against a clear strategic plan.
Content provided by Otus
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Artificial Intelligence Webinar
Beyond Teacher Tools: Exploring AI for Student Success
Teacher AI tools only show assigned work. See how TrekAi's student-facing approach reveals authentic learning needs and drives real success.
Content provided by TrekAi
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
College & Workforce Readiness Webinar
Building for the Future: Igniting Middle Schoolers’ Interest in Skilled Trades & Future-Ready Skills
Ignite middle schoolers’ interest in skilled trades with hands-on learning and real-world projects that build future-ready skills.
Content provided by Project Lead The Way

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

Education Funding The Trump Admin. Says It Supports Career-Tech. Ed. It Canceled CTE Grants Anyway
Nineteen projects—many in rural areas—lost funding that was helping students prepare for college and careers.
12 min read
As part of the program, the Business students at Donald M. Payne Sr. Tech Campus in Newark, NJ on Feb. 26, 2026m have access to computers with subscriptions to the latest software to help them prepare for the workforce.
Business students at the Donald M. Payne Sr. School of Technology in Newark, N.J., work in a computer lab on Feb. 25, 2026. A U.S. Department of Education grant was helping students in business and other fields at the school access enrichment programming, college courses, and financial support after graduation. But the department terminated the grant, along with 18 other similar awards across the country, last summer.
Oliver Farshi for Education Week
Education Funding Educators Warn Flat English Learner Funding Falls Short of Growing Demand
Educators remain uncertain about the future of federal funds for English learners.
3 min read
Pictures show what mouth shape different sounds make on the walls of Diana Oviedo-Holguin’s class at Heritage Elementary School in San Antonio, Texas, on Sept. 3, 2025.
Pictures show what mouth shape different sounds make on the walls of Diana Oviedo-Holguin’s class at Heritage Elementary School in San Antonio, Texas, on Sept. 3, 2025. While educators feel relieved that federal dollars for supplemental English-learner resources will continue in the next fiscal year, they remain uncertain for the years to come.
Noah Devereaux for Education Week
Education Funding Congress Has Passed an Education Budget. See How Key Programs Are Affected
Federal funding for low-income students and special education will remain level year over year.
2 min read
Congress Shutdown 26034657431919
Congress has passed a budget that rejects the Trump administration’s proposals to slash billions of dollars from federal education investments, ending a partial government shutdown. House Speaker Mike Johnson, R-La., and fellow House Republican leaders speak ahead of a key budget vote on Feb. 3, 2026.
AP Photo/J. Scott Applewhite
Education Funding Trump Slashed Billions for Education in 2025. See Our List of Affected Grants
We've tabulated the grant programs that have had awards terminated over the past year. See our list.
8 min read
Photo collage of 3 photos. Clockwise from left: Scarlett Rasmussen, 8, tosses a ball with other classmates underneath a play structure during recess at Parkside Elementary School on May 17, 2023, in Grants Pass, Ore. Chelsea Rasmussen has fought for more than a year for her daughter, Scarlett, to attend full days at Parkside. A proposed ban on transgender athletes playing female school sports in Utah would affect transgender girls like this 12-year-old swimmer seen at a pool in Utah on Feb. 22, 2021. A Morris-Union Jointure Commission student is seen playing a racing game in the e-sports lab at Morris-Union Jointure Commission in Warren, N.J., on Jan. 15, 2025.
Federal education grant terminations and disruptions during the Trump administration's first year touched programs training teachers, expanding social services in schools, bolstering school mental health services, and more. Affected grants were spread across more than a dozen federal agencies.
Clockwise from left: Lindsey Wasson; Michelle Gustafson for Education Week