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District appeal denied but DOJ-backed injunction keeps mental-health grant funds in limbo
Summary
The U.S. Department of Education denied the district’s appeal to continue its mental-health demonstration grant beyond 12/31/2025; the Department of Justice joined other LEAs in seeking an injunction and a judge allowed the injunction to proceed; next court date is Oct. 7.
District staff updated the subcommittee on the status of its federal mental-health demonstration grant and related litigation.
Staff reported the U.S. Department of Education had notified recipients that the active mental-health demonstration grants would end on Dec. 31, 2025, and that the district's administrative appeal of the termination had been denied in the DOE response. Following the denials, the Department of Justice and multiple local education agencies pursued an injunction to halt the terminations; staff reported that a judge declined the DOE's request to dismiss that injunction and the injunction remains in process. The next court date was identified as Oct. 7.
Staff told the committee the district should prepare budget scenarios and options by November–December so the board can decide whether to continue elements of the program if federal funds are not restored. Staff emphasized the uncertainty of timing and that the injunction provides a temporary pause while litigation proceeds.
