Story · August 10, 2026

Illinois, other states sue over Education Department cuts to school mental-health grants

School funding fight Confidence 5/5
★★★☆☆Fuckup rating 3/5
Major mess Ranked from 1 to 5 stars based on the scale of the screwup and fallout.
Correction: The lawsuit was filed June 30, 2025. Later court rulings and continuation awards occurred in December 2025 and should not be described as part of the June 30 filing without that date context.
Illinois, other states sue over Education Department cuts to school mental-health grants

Illinois joined a coalition of 15 states in a federal lawsuit challenging the U.S. Department of Education’s decision to discontinue school-based mental health grants. The complaint, filed June 30, 2025, says the department’s move would cut off funding that schools in Illinois and other states were using to provide counseling and related services for students. The Illinois attorney general’s office said the administration later tried to renew the effort even after a court order had barred it from ending the grants. ([illinoisattorneygeneral.gov](https://illinoisattorneygeneral.gov/news/story/attorney-general-raoul-files-lawsuit-to-prevent-department-of-educations-cuts-to-school-mental-health-grants))

The lawsuit centers on two grant programs: the Mental Health Service Professional Demonstration Grant Program and the School-Based Mental Health Services Grant Program. According to the complaint, Congress created and funded the programs to expand access to school-based mental health professionals in high-need, low-income, and rural communities. The filing says the Education Department notified grantees in April 2025 that their awards would be discontinued and later tied the decision to the administration’s new priorities. ([illinoisattorneygeneral.gov](https://illinoisattorneygeneral.gov/news/story/attorney-general-raoul-files-lawsuit-to-prevent-department-of-educations-cuts-to-school-mental-health-grants))

In the complaint, the states argue that ending the grants violates the Administrative Procedure Act and the Constitution. The Illinois attorney general’s office said the coalition first sued in July 2025, then won an order in December 2025 that found the discontinuations unlawful and required the department to make new continuation decisions. The office said the department later issued continuation awards through Dec. 31, 2026, but only for six months at a time, which the states say has made planning difficult for school districts. ([illinoisattorneygeneral.gov](https://illinoisattorneygeneral.gov/news/story/attorney-general-raoul-files-lawsuit-to-prevent-department-of-educations-cuts-to-school-mental-health-grants))

The filing says the grants have supported services for tens of thousands of students in Illinois and that losing them would reduce access to counselors and other school-based mental health staff. The states asked the court for a preliminary injunction to stop the department from terminating the grants while the case continues. ([illinoisattorneygeneral.gov](https://illinoisattorneygeneral.gov/news/story/attorney-general-raoul-files-lawsuit-to-prevent-department-of-educations-cuts-to-school-mental-health-grants))

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