The Ninth Circuit Court of Appeals refused Tuesday to stay a federal injunction that prevents the U.S. Department of Education from canceling funding for mental health services at primary and secondary schools without following legally required procedures.
The three-judge appellate panel denied an emergency request for a stay pending appeal of a permanent injunction that a federal district court judge in Seattle issued in December. The injunction protects approximately $1 billion in school mental health grant funding from arbitrary termination.
In a per curiam decision, the panel held it was not persuaded the Education Department could prevail against claims brought by 16 states challenging the grant cancellations. The court found no evidence that the federal government suffered irreparable harm from the injunction, noting the department could still terminate funding as long as it followed prescribed procedures.
"The department has not made a strong showing it is likely to succeed on the merits of plaintiff states' claims that the department's discontinuation notices were contrary to law and arbitrary and capricious under the APA," the panel wrote, referring to the Administrative Procedure Act, which governs how federal agencies must make substantive decisions.
The Administrative Procedure Act requires federal agencies to provide reasoned explanations for their decisions and follow established procedures when making policy changes that affect grant recipients. The appeals court found the Education Department's actions failed to meet these basic legal standards.
"The department's discontinuation notices were not tailored to the specific grants and failed to explain what was wrong with each grantee's project, which is not a sufficiently reasoned explanation for the agency's decision to cancel," the panel added.
Senior U.S. Circuit Judge Richard Tallman, a Bill Clinton appointee, Senior U.S. Circuit Judge Jay Bybee, a George W. Bush appointee, and U.S. Circuit Judge Gabriel Sanchez, a Joe Biden appointee, comprised the panel that issued the decision.
The underlying lawsuit began in July when 16 states sued the Education Department for cutting funding for mental health services at primary and secondary schools. The terminated grants were awarded under two programs: the Mental Health Service Professional Demonstration Grant Program and the School-Based Mental Health Services Grant Program.
According to the plaintiff states, these programs have been highly successful in providing critical mental health support to students. The grants fund mental health professionals, counseling services, and other support systems in schools across the country at a time when youth mental health needs have increased substantially.
The Education Department canceled the grants without providing detailed explanations beyond generic discontinuation notices. This approach violated the Administrative Procedure Act's requirements for reasoned decision-making, according to the federal district court in Seattle that issued the original injunction in December.
Washington state Attorney General Nick Brown praised the appeals court's decision to maintain the injunction. "What's at stake is nothing less than the well-being of our kids," Brown said in response to the court's decision. "This administration prefers wasting time in court instead of providing the needed support for youth who are struggling. Thankfully, the appeals court said enough is enough."
The Justice Department, which represents the Education Department in the litigation, did not immediately respond to requests for comment on the Ninth Circuit's decision.
The case highlights ongoing tensions between federal education policy and state implementation of mental health programs in schools. Mental health services in educational settings have become increasingly important as schools grapple with rising rates of anxiety, depression, and other mental health challenges among students.
The grants at issue support various mental health initiatives, including hiring licensed mental health professionals for schools, training teachers to recognize mental health issues, and developing comprehensive mental health support programs. Many of these services are particularly crucial in underserved communities where access to mental health care is limited.
The Ninth Circuit's decision means the injunction remains in effect while the Education Department appeals the underlying case. The department can still terminate grant funding, but only if it provides adequate explanations tailored to each specific grant and follows proper Administrative Procedure Act requirements.
This procedural requirement ensures that grant recipients have notice of specific deficiencies and an opportunity to address them before losing funding. The requirement also prevents arbitrary or politically motivated grant cancellations by requiring agencies to articulate legitimate, fact-based reasons for their decisions.
The case will likely proceed through the appeals process, with the Education Department continuing to challenge the district court's permanent injunction. However, the Ninth Circuit's refusal to grant a stay suggests the appeals court views the states' legal arguments as strong and the Education Department's position as weak.
The decision ensures continued funding for school mental health programs while the legal challenge proceeds, providing stability for schools and students who rely on these critical services.