Cities and states recently sued the Trump administration over funding cuts to mental health programs and rules related to the ACA.
Mental Health: 16 state attorneys general sued the administration for cancelling over $1 billion in federal mental health grants in rural and low-income communities.
- The details: The lawsuit challenges the Education Department’s decision to cut funding for the Mental Health Service Professional Demonstration Grant Program and the School-Based Mental Health Services Grant Program, programs with bipartisan support.
- The Education Department, which announced the grant terminations in April, said the funding conflicts with the administration’s priorities. The programs were established and received increased funding in laws that came in response to school shootings.
- The attorneys general (AGs) argue that if the cuts proceed, it will lead to layoffs of hundreds of school-based mental health professionals and end services for thousands of vulnerable students. They argue that the cuts undermine Congress’ authority and flout the Administrative Procedure Act because of a lack of notice. They also accuse the administration of violating federal rules that dictate the continuation of grant awards.
- The AGs are asking the court to deem the grant terminations unlawful, reinstate the funding, and stop the agency from undertaking ideological moves.
ACA: Three mayors are suing the administration over new rules that make changes to Affordable Care Act enrollment and eligibility.
- The rules would shorten the ACA enrollment period and make income verification checks more stringent. They would add a $5 fee for some people who automatically re-enroll in a free plan and allow insurers to deny coverage to people who have not paid their premiums on past plans.
- Why it’s important: As many as 2 million people are expected to lose coverage from the new rules.
- The lawsuit: The mayors of Baltimore, Chicago, and Columbus, Ohio, along with advocacy groups Doctors for America and Main Street Alliance, sued HHS. They say the rules will result in more uninsured residents and overburden city services. They argue the policies were introduced without an adequate comment period.
Published
July 2025