A coalition of 24 Democratic state attorneys general, along with governors from several states, have filed a federal lawsuit against the Trump administration, accusing it of illegally freezing more than $6.8 billion in education funding that supports millions of students nationwide. The lawsuit, filed in the U.S. District Court in Rhode Island, seeks immediate restoration of the funds and a court order halting what plaintiffs are calling a politically motivated and unconstitutional funding blockade.
At the heart of the lawsuit is a controversial decision by the Department of Education to pause the release of key federal education grants just one day before they were scheduled to be distributed on July 1. These grants support a wide range of programs — including after-school services, teacher training, English language instruction, migrant education, and adult learning.
According to internal memos sent to Congress, the Trump administration initiated a “programmatic review” of the grants, claiming that some of the funds were being used to advance what it described as a “radical left-wing agenda.”
Critics say that explanation is vague and ideologically driven. North Carolina Attorney General Jeff Jackson, one of the lead plaintiffs, said the funding pause blatantly violates the Impoundment Control Act of 1974, which prohibits the executive branch from withholding congressionally approved funds without notifying and receiving approval from Congress.
“This is not just bad policy — it’s illegal,” Jackson told reporters. “The executive branch cannot unilaterally decide to freeze billions of dollars that were lawfully appropriated. That power lies with Congress. It’s a clear violation of the Constitution and a direct breach of federal law.”
Other state officials echoed similar concerns. California State Superintendent Tony Thurmond warned that nearly $1 billion in funds earmarked for his state remain frozen, putting many school districts — particularly those in underserved areas — at risk of losing teachers, classroom support, and student enrichment programs. “These are funds districts were counting on,” Thurmond said. “They’ve already built their budgets around them.”
The withheld funding affects at least six federal programs:
- Title II-A (professional development for teachers),
- Title III-A (English Language Acquisition),
- Title IV-A (student support and academic enrichment),
- Title IV-B (after-school programs),
- Title I-C (Migrant Education), and
- Adult Education State Grants.
Several school systems are already warning of immediate layoffs and program closures if the money isn’t released. Jackson noted that North Carolina could be forced to cut up to 1,000 educators statewide, affecting classroom size and student services.
“We’re already seeing school districts that are planning to eliminate after-school programs, cancel teacher training, and reduce classroom staff. The impact will be swift, especially in high-poverty and rural areas,” Jackson added.
Alabama State Superintendent Eric Mackey also voiced concern, emphasizing that many of the affected programs are critical for low-income students and struggling school districts. “The loss of funding will hit the poorest areas the hardest,” Mackey said. “If this freeze continues into the next budget cycle, schools will have no choice but to permanently eliminate programs that serve children with the greatest need.”
The Office of Management and Budget (OMB) has not released a clear timeline for when the funding review will be completed or when — if ever — the grants will be restored. In a brief statement, OMB claimed the administration is working to ensure that federal funds are not being “misused” or redirected toward initiatives that conflict with federal priorities.
Legal experts say the administration’s reasoning likely won’t hold up in court. According to the Government Accountability Office, the Impoundment Control Act requires the executive branch to notify Congress of any decision to withhold funds, and even then, the freeze must be temporary and justified. So far, the administration has not submitted any formal notification.
The lawsuit is gaining support from civil rights organizations, education advocacy groups, and parent coalitions, many of whom are now preparing their own legal actions.
Washington State Superintendent Chris Reykdal said schools in his state could lose up to $150 million, forcing districts to make emergency cuts before the fall semester. “If we don’t see movement by September, we’ll have to start the school year assuming the money is gone,” he said. “That’s not sustainable.”
The National Education Association (NEA), the largest teachers’ union in the country, estimates that if the funding is not reinstated, more than 10,000 education jobs could be lost nationwide.
The Trump administration, meanwhile, has also signaled broader plans to dismantle or significantly downsize the Department of Education, cutting its workforce by nearly half and proposing a return of more education authority to the states. Supporters argue these moves align with a long-standing conservative goal to limit federal involvement in education.
However, for school leaders, teachers, and parents across the country, the timing and scope of the funding freeze couldn’t be worse.
“We’re staring down a disaster if this isn’t resolved quickly,” said Jackson. “This isn’t about politics. It’s about keeping teachers in classrooms, keeping kids safe after school, and ensuring students don’t fall through the cracks.”
