A coalition of 14 state attorneys general filed a protective lawsuit Friday against the U.S. Department of Education, seeking to halt the termination of congressionally approved mental health grants for public school students. The legal action, led by Democratic attorneys general, comes after a federal judge in Washington state issued a permanent injunction against the department's initial plan to cut the grants, which were awarded for five-year project periods with annual continuation funding.
The lawsuit, filed in the U.S. District Court for the District of Columbia, is described as a backup to an earlier suit that secured the injunction. In April 2025, the Education Department announced it would discontinue the grants, arguing they conflicted with the administration's current priorities. U.S. District Judge Kymberly Evanson later ruled that the decision was “arbitrary and capricious” under federal law and issued a permanent injunction.
Despite that ruling, the department signaled it still intends to terminate “some or all” of the grants at the end of July if a pending motion for clarification on the injunction succeeds. The states' complaint states: “Plaintiff States bring this Complaint protectively, because while the Washington injunction should prevent the Department from implementing the vacated and enjoined Directive procedure ‘through any means,’ including termination, the Court might hold otherwise, leaving the grants vulnerable to immediate and unlawful termination.”
Oregon Attorney General Dan Rayfield (D) emphasized the stakes: “When a student is having mental health concerns—or is in crisis—they need to have trusted counselors at their school who can help them navigate those tough times. The Trump administration is once again trying to strip mental health support from students who need it most – and once again, we’re taking them to court to stop it.”
New York Attorney General Letitia James (D) added: “The first time this administration tried to take mental health services away from children, we beat them in court. Now they are trying to carry out the same illegal scheme and abandon students who need support. We already stopped them once, and we are prepared to do it again. My office will keep fighting to protect our children’s mental health and ensure schools have the resources to hire counselors, social workers, and psychologists in communities that need them most.”
The lawsuit echoes broader concerns about federal overreach and the administration's approach to social programs. This legal battle unfolds as a proposed rule would let Trump appointees kill grants for political reasons, raising alarms among advocates who say such authority could be used to dismantle essential services. Meanwhile, public health gains are at risk as federal funding dries up, experts warn, highlighting the broader impact of funding cuts on vulnerable populations.
The plaintiff states are seeking a court hearing on July 24 to determine whether a preliminary injunction or temporary restraining order should be issued, and to have the department's termination plan declared unlawful. The coalition includes attorneys general from California, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, New Mexico, New York, Rhode Island, Washington, and Wisconsin.
The Hill has reached out to the Department of Education for comment on the lawsuit. The case marks the latest clash between Democratic state officials and the Trump administration over mental health funding, with states arguing that the cuts violate congressional intent and harm students already struggling with rising rates of anxiety and depression.
