A federal judge has permanently restored two multi‑year Education Department mental‑health grant programs in 16 states, ruling that the department’s April cancellation was unlawful. U.S. District Judge Kymberly Evanson said the department’s decision to terminate approved awards for the School‑Based Mental Health Services and Mental Health Service Professional Demonstration Grants violated administrative procedure and improperly politicized grantmaking. The grants—originally launched in 2018 to expand school‑based clinicians and partnerships with colleges—totaled roughly $1 billion in canceled awards and had been redesigned under the current administration with new priorities limiting eligible provider types. The judge found the cancellations caused “significant disruption” in the plaintiff states and ordered funding reinstated. State education agencies and campus partners who had already reallocated resources face operational and financial uncertainty as the department reviews the ruling and next steps. The court action underscores how litigation is reshaping federal support for student mental‑health services and the role of colleges in workforce development for school clinicians.