Court Ruling Could Restore Millions Cut From California School Mental Health Grants

A federal appeals panel on Dec. 4 rejected the Trump administration’s bid to stay a preliminary injunction that ordered the U.S. Department of Education to release remaining school mental health grant funds. The decision could force the department to temporarily restore millions of dollars intended for counselors, social workers and psychologists serving California students, though the relief is limited and may not be permanent.

What the Ruling Means

The injunction does not decide the underlying lawsuit, which contends the administration unlawfully canceled grant awards in April. Instead, the court’s refusal to pause the injunction prevents the department from relying on the contested reasons it cited for the cancellation while appeals proceed. The grants, created by Congress after the 2022 Uvalde, Texas, school shooting, originally accounted for about $168 million for California districts.

Who Benefits (So Far)

The injunctive relief applies only to grantees that filed declarations of harm with the court. Among those are McKinleyville Union School District and Northern Humboldt Union High School District in Humboldt County. McKinleyville has separately pursued its own lawsuit seeking nearly $6 million in remaining funds.

The latest decision would restore roughly $3.8 million to Madera County and about $8 million to Marin County, but many districts remain uncertain whether funds will be released quickly enough to prevent staff cuts or whether the relief will survive further appeals.

Districts Warn of Immediate Harm

District officials say the temporary reprieve may not be enough to prevent near-term staffing losses. Jack Bareilles, grants and evaluation administrator for Northern Humboldt Union High School District, said the district still expects to lose more than $6.5 million in grant money overall and could be unable to retain four social workers, project staff and several prospective interns unless a final ruling secures the funding.

Amanda Mangaser Savage, an attorney at the nonprofit law firm Public Counsel, cautioned that the injunction is temporary: it "prevents the department from relying on the unlawful considerations it cited when it discontinued the grants," she said, but it does not guarantee funds will be disbursed in time to prevent staff losses before the Dec. 31 cutoff noted in the cancellation notice.

Impact on Students and Communities

Before receiving grant support, McKinleyville Union had one counselor for every 850 students; the funding allowed the district to hire five additional counselors. Officials warn that cutting established positions midyear risks severing relationships students have formed with mental health providers, which can be more harmful than never having the services to begin with.

Northern Humboldt reports the grant has enabled it to provide services to more than 3,600 additional students since 2023 and to credential and employ over 25 mental health clinicians in the county. Humboldt County faces especially high needs: more than half of youth there have experienced traumatic events such as abuse or homelessness, and Native American youth in the county rely heavily on grant-funded services like grief intervention and suicide prevention.

Outlook

The Department of Education may continue to appeal the injunction, and the administration has signaled it could pursue appeals up to the Supreme Court. That means districts face ongoing uncertainty: temporary funds may arrive too late to prevent staff departures, and a final decision could still overturn the grants. Still, for some districts the ruling offers an important, if precarious, chance to preserve services while the case proceeds.

Note: The Associated Press contributed to this report.