A federal judge in Seattle expressed skepticism Wednesday as sixteen states accused the U.S. Department of Education of attempting to circumvent a court order that blocked the cancellation of approximately $1 billion in school mental health grants.
The controversy centers on funding allocated through the Mental Health Service Professional Demonstration Grant Program and the School-Based Mental Health Services Grant Program, both established by Congress in 2018 and 2020 following devastating school shootings. These programs aim to address the shortage of mental health professionals in low-income schools and bring 14,000 additional counselors and specialists into schools nationwide.
Jennifer Chung, representing the Washington Attorney General’s Office, argued that the Education Department is creating artificial obstacles to discontinue grants despite a December court ruling. Washington leads a coalition that filed suit in July after the department attempted to cancel the grants, citing conflicts with administration priorities.
U.S. District Judge Kymberly Evanson had previously issued a permanent injunction requiring the department to reconsider each grant using proper regulatory procedures and base decisions on performance data rather than political preferences. However, the states now claim the department is violating this order through indirect means.
According to the plaintiff states, the Education Department sent notices to 118 grantees in March stating their federal awards would continue under protest. These grantees were required to submit updated performance and budget reports by June 1, with the department indicating it would use these reports to determine additional funding.
The states argue this creates an unfair dual-track system, forcing certain grantees through a second continuation process while treating others more favorably. They characterize these requirements as deliberately burdensome measures designed to hinder grant projects and manufacture reasons for discontinuation.
During Wednesday’s hearing, Judge Evanson questioned the department’s motivations directly. She challenged whether singling out certain grantees aligned with the spirit of her injunction, stating candidly that the department’s actions appeared to constitute bad faith.
Brian Kipnis, representing the U.S. Attorney’s Office, denied that any grantees were being singled out. He maintained that different treatment reflected unique circumstances rather than discriminatory intent. Kipnis argued that the vast majority of grantees received new continuation decisions and that the department had not violated any aspect of the court’s injunction.
The judge pressed Kipnis about previous representations made to the court in January, when he had argued against a compliance plan and assured that continuation awards would last twelve months. Kipnis responded that while that was the intent at the time, dynamic decision-making related to budget priorities had altered the plan. He suggested the states were complaining about worst-case scenarios that might not materialize.
Judge Evanson appeared unconvinced, noting that grantees had not received the promised calendar year of funding and now faced uncertainty about their programs’ futures.
The grant programs have demonstrated significant success in their first year of operation, providing mental and behavioral health services to nearly 775,000 elementary and secondary students nationwide. According to the states, these programs have achieved a 50 percent reduction in suicide risk at high-need schools, decreased absenteeism and behavioral issues, and improved positive student-staff engagement.
The multiyear grants were specifically designed to permanently increase mental health support in schools serving low-income communities, addressing a critical shortage of school-based mental health professionals.
Judge Evanson declined to issue an immediate ruling from the bench, indicating she would provide a written order as soon as practicable. The outcome of this case could significantly impact mental health services for hundreds of thousands of students across the country.
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