Court orders U.S. Department of Education to act on previously approved grants after multistate challenge

Organ Mountain News report

SANTA FE - A federal appeals court ruling this week could restore more than $4.48 million in school mental health funding affecting New Mexico after the U.S. Department of Education moved last year to cancel previously approved grants.

The Ninth Circuit Court of Appeals sided with New Mexico and 15 other states in a legal challenge over the cancellation of grants intended to place thousands of mental health professionals in K-12 schools nationwide, particularly in rural and low-income communities.

The decision requires the Department of Education to move forward with continuation determinations for the grants after months of delays and prior court orders.

Attorney General Raúl Torrez said the ruling ensures states will have a chance to continue seeking funding for student mental health services.

“This ruling ensures that states like New Mexico will continue to have a fair opportunity to secure the mental health resources our students need, especially in rural and underserved communities that rely on these services,” Torrez said in a statement.

The dispute began last June when the Department of Education notified grant recipients that previously approved projects would be discontinued, stating they no longer aligned with federal priorities. According to court filings, the notices did not include detailed explanations for individual grant cancellations.

A coalition of states challenged the decision in federal court, arguing the cancellations were unlawful and threatened programs designed to address youth mental health needs in schools. Courts have issued multiple rulings in favor of the states since the lawsuit was filed.

The latest order from the Ninth Circuit rejected the Department of Education’s request to delay a deadline for issuing continuation decisions. Following the ruling, U.S. District Judge Kymberly Evanson ordered the department to issue continuation determinations by March 2 and any new continuation awards by March 5, with awards backdated to Feb. 6.

In its written decision, the appeals court said the department’s cancellation notices failed to provide sufficient reasoning for terminating individual grants.

State officials said more than $4.48 million in funding tied to New Mexico schools was affected by the cancellations.

Washington Attorney General Nick Brown led the lawsuit. Attorneys general from California, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, New York, Nevada, Oregon, Rhode Island and Wisconsin joined the case.