Education Funding

School Mental Health Projects Canceled by Trump Might Still Survive

The end of funding could still be days away, but a new court order offers some hope for grantees
By Matthew Stone — December 24, 2025 6 min read
Reducing, removing or overcoming financial barriers, financial concept : US dollar bag on a maze puzzle.
  • Save to favorites
  • Print

Nearly 140 school districts, universities, and state departments of education now have a chance to hold onto federal grants for school mental health services that the Trump administration cut off earlier this year.

But the grant recipients are still on edge just days before their funding has been set to run out. That’s because Trump administration officials now must make a new round of project-by-project decisions by Tuesday, Dec. 30, on whether to keep money flowing for the mental health initiatives for another year.

The shred of hope for the grantees has come from two federal court orders, issued Dec. 19 and Dec. 23, in a lawsuit launched by 16 states to challenge the April termination of dozens of five-year grants around the country designed to boost the ranks of school mental health professionals and train future specialists to work in schools.

See Also

Illustration of dollar symbol in rollercoaster.
iStock

What did the judge’s orders on mental health projects do?

On Dec. 19, Seattle-based Judge Kymberly Evanson ruled that the U.S. Department of Education violated federal law when it informed grant recipients that their funding would end Dec. 31 because their work reflected Biden administration priorities and was now “inconsistent” with “the best interest of the federal government.”

The notices, all with uniform language, contained no individualized explanation for the terminations, Evanson noted, nor did the Education Department give grantees any notice that it had set new priorities for the funding—a requirement for any competitive grant application.

“The department essentially—and surreptitiously—ran a new grant contest evaluating existing original grant applications against new unpublished priorities,” Evanson, an appointee of former President Joe Biden, wrote in her 36-page order.

For many grantees, the termination notices came just months after they began their work, effectively cutting off what they expected to be five-year projects after a single year. For others, the notices came at the start of the third year of their five-year projects.

Before this administration, such midproject terminations had been rare and only related to grantee misconduct. But the Trump administration has canceled in-progress, competitive grants throughout the year, often claiming they advance diversity, equity, and inclusion initiatives that the administration says are illegal.

The grantees all received funding after showing that their projects would fulfill Biden administration priorities that included boosting the diversity of school-based mental health professionals and the number who came from the communities they’re serving.

While those aren’t Trump administration priorities, Evanson disagreed that it had the authority to discontinue multiyear grants for that reason.

“Nothing in the existing regulatory scheme comports with the department’s view that multi-year grants may be discontinued whenever the political will to do so arises,” she wrote.

Evanson threw out the Education Department’s April terminations and told the agency to make new project-by-project decisions on whether to continue funding in 2026 based on legally acceptable criteria—mainly, whether grantees have submitted required reports and made progress toward completing their projects.

In a subsequent order, Evanson said the department must make those decisions by Dec. 30.

An Education Department spokesperson didn’t immediately respond to a request for comment on whether it could make those decisions in time.

Who’s affected by the latest order?

Evanson’s order applies to 138 grantees in 15 of the 16 states that sued, expanding the reach of an order she issued in October that temporarily preserved funding for 49 projects in those states.

The grantees received awards under two programs created during the first Trump administration following the 2018 school shooting in Parkland, Fla.—one to help schools hire and retain mental health professionals and the other to train future school counselors, psychologists, social workers, and school-based clinicians.

Some 339 entities across the country—a mix of school districts, multidistrict partnerships, state education departments, and universities—received awards from the Biden administration after Congress devoted $1 billion to those programs in 2022 following the school shooting in Uvalde, Texas.

The Education Department then cut off funding for 223 of those awards in late April, according to court filings.

Evanson’s order applies to terminated grant recipients from the states that sued—California, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, Nevada, New Mexico, New York, Oregon, Rhode Island, Washington, and Wisconsin. However, Nevada has no affected grants, according to Evanson’s order.

Why are mental health grantees still on edge?

The termination notices for those 138 grant recipients are no longer valid, but the grantees still have no guarantee of continuing to receive funding for their school mental health initiatives past Dec. 31.

While the Education Department can’t cut off grants the way it did in April, it could still come up with new justifications to stop funding for some or all of the projects, all while following Evanson’s court order.

And the decisions will come down to the wire.

The University of Washington, for example, had been using grant funding to cover tuition for graduate students training to become school psychologists. Tuition payments for the new semester are due Jan. 9, according to court filings, and the participating students still don’t know whether their tuition will be covered.

With a lapse in grant funding, “the students likely will pause their training ... or drop out because they can’t afford to cover the tuition,” a university official said in a court filing.

Is there enough money to keep these mental health grants in place?

There’s also uncertainty about whether the Education Department still has enough money to continue paying for these 138 projects if it decides to keep their funding in place for some or all of them.

That’s because when it canceled grants in April, the Trump administration said it planned to devote the freed-up money to a new school mental health grant competition of its own—based on its own policy priorities (funding for school psychologists only and no other types of mental health professionals and prohibiting grantees using their awards for “gender ideology, political activism, racial stereotyping, or hostile environments for students of particular races”).

When the Education Department launched the competition in late September, it estimated it would award $270 million. Ultimately, it awarded $208 million when it announced a new set of grantees in mid-December. Plus, the department might have to continue funding for some or all of the 138 projects covered by the lawsuit.

See Also

Image of hands taking care of a student with a money symbol in the background.
Getty and Education Week

But Congress hasn’t yet appropriated all those funds, according to lawyers for the states that sued, meaning the projects will depend on Congress deciding in the future to set aside funding for them.

Lawyers for the states requested a full accounting for more clarity on the funding situation, but Evanson hasn’t yet ordered that. The Education Department didn’t respond to a request for clarification on available funding.

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
Reading & Literacy Webinar
Unlocking Success for Struggling Adolescent Readers
The Science of Reading transformed K-3 literacy. Now it's time to extend that focus to students in grades 6 through 12.
Content provided by STARI
Jobs Regional K-12 Virtual Career Fair: DMV
Find teaching jobs and K-12 education jubs at the EdWeek Top School Jobs virtual career fair.
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
Professional Development Webinar
Mentorship That Matters: Strengthening Educator Growth & Retention
Learn how to design mentorship programs that go beyond onboarding to create meaningful professional growth opportunities.
Content provided by Frontline Education

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 Federal Funds for Schools Will Still Flow Through Ed. Dept. System—For Now
The Trump administration has been touting its transfer of K-12 programs to the Labor Department.
5 min read
Remaining letters on the Department of Education on Wednesday, March 18, 2026, in Washington.
Remaining letters on the U.S. Department of Education building in Washington on Wednesday, March 18, 2026. Despite the agency's efforts to shift management of many of its programs to the U.S. Department of Labor, key K-12 funds will continue to flow through the Education Department's grants system this summer.
Allison Robbert/AP
Education Funding Trump's Budget Proposes Billions in K-12 Cuts. Will They Happen?
Trump is proposing level funding for Title I, a modest boost for special education, and major cuts elsewhere.
6 min read
A third-grade teacher at the Mountain View Elementary School's Global Immersion Academy in Morganton, N.C. works with her students in the Spanish portion of the program. With the inaugural class of the Global Immersion Academy (GIA) at at the school entering fourth grade this year, Burke County Public Schools is seeing more signs of success for its dual language program.
A teacher in a North Carolina dual-language program works with her students. In his latest budget proposal, President Donald Trump once again proposes to eliminate the $890 million fund that pays for supplemental services for English learners. Schools can use Title III funds for costs tied to dual-language programs that educate English learners.
Jason Koon/The News-Herald via AP
Education Funding Trump Again Proposes Major Education Cuts in New Budget Proposal
The president again wants lawmakers to consider billions in K-12 spending cuts and program eliminations.
7 min read
The Senate and the Capitol Dome are illuminated in Washington, early Thursday, April 2, 2026, as Congress meets in a short, pro forma session.
The Senate and the Capitol dome are illuminated in Washington early in the day on Thursday, April 2, 2026. For the second year in a row, the White House budget proposes major cuts to federal education programs that the Republican-led Congress rejected last year.
J. Scott Applewhite/AP
Education Funding Arts Education Advocates Talk About How to Elevate Their Discipline
Art education community members come together to discuss funding challenges and opportunities.
3 min read
DSC 4497
WASHINGTON, DC - MARCH 24: National arts education leaders, advocates, and policymakers gather for a couple of hours at the University Club on March 24, 2026 in Washington.
Marvin Joseph for Education Week