As reported by K-12 Dive, on December 11, 2025 the U.S. Department of Education (USDE) announced new allocations for its mental health grants, which it revoked from over 200 original recipients earlier this year. The new funds come after the agency controversially revoked up to $1 billion under the same programs from recipients that incorporated diversity, equity and inclusion (DEI) efforts. The amount of the new grants total more than $208 million, but are significantly less than the nearly $1 billion in funds pulled from school-based programs and providers earlier this year.
The new awards will be divided up among 65 recipients that were selected under a new application process and are subject to new requirements that limit funding to hiring school psychologists rather than also funding school counselors and social workers. Recipients are also prohibited from “promoting or endorsing gender ideology, political activism, racial stereotyping, or hostile environments for students of particular races.”
In a pending legal case, California’s McKinleyville School District, which serves Native American students and wanted to hire mental health providers to reflect the make-up of its student body, had about $5.9 million in funding revoked, ending the district’s grant with the USDE saying school district’s plans reflected “the prior Administration’s priorities and policy preferences and conflict with those of the current Administration.” Using the money in this way “no longer effectuates the best interest of the Federal Government.” Consequently, the school district and other entities sued the Trump administration over the withdrawal of the grants, saying such a move could only be made in cases where recipients didn’t meet their proposed benchmarks. A court temporarily paused the USDE’s decision in a separate lawsuit brought by 16 states. Those lawsuits are ongoing.
For more from K-12 Dive, click here.