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Court Temporarily Blocks Termination of School-Based Mental Health Grants

Aug 3, 2026

On July 27, a federal district court issued a temporary restraining order blocking the U.S. Department of Education (ED) from terminating grants under the School-Based Mental Health Services (SBMH) Grant Program and the Mental Health Service Professional Demonstration (MHSP) Grant Program in 15 states.

The court found that ED likely acted unlawfully by attempting to terminate previously approved multi-year grants without providing the notice and opportunity for review required under federal law.

Key Takeaways:

  • Fifteen states sued after the ED announced plans to terminate grants under the SBMH Grant Program and the MHSP Grant Program beginning July 31, 2026.
  • A federal judge found the states are likely to succeed on their claims that ED violated the Administrative Procedure Act.
  • What's Next: The temporary restraining order remains in effect through Aug. 24, 2026, while the court considers a preliminary injunction.

ÀÖ²©´«Ã½will continue to monitor this case and provide updates as they become available. If you would like to become involved in ACA’s advocacy efforts, please contact us at advocacy@counseling.org.