The Trump administration has agreed to restore more than $6.8 billion in federal education funds after facing a multi-state lawsuit challenging its abrupt decision to freeze the congressionally allocated money.
The withheld funding, earmarked for after-school and summer learning programs, teacher training, and support for English learners, had left more than 1.4 million children — many from low-income families — at risk of losing critical educational services just weeks before the school year began.
Lawsuit Forced Administration to Reverse Course
The lawsuit was led by California Attorney General Rob Bonta along with attorneys general from 22 other states and governors from two additional states.
Plaintiffs argued that the administration’s move violated the U.S. Constitution, which grants Congress the sole authority to appropriate federal funds, and contravened the Impoundment Control Act of 1974, which bars presidents from unilaterally withholding money already designated by Congress.
“The Trump administration upended school programs across the country when it recklessly withheld vital education funding just weeks before the school year was set to begin,” Bonta said in a statement announcing the resolution. “Fortunately, after we filed our lawsuit, the Trump administration backed down and released the funding it had previously withheld.”
Administration’s Justification Questioned
While the administration did not provide a formal explanation for the freeze, a spokesperson for the White House Office of Management and Budget suggested that a review found federal education money being “grossly misused to subsidize a radical leftwing agenda.”
Critics, however, said the move fit into a broader effort by Trump to reshape U.S. public education around his political and social agenda.
His administration has previously threatened to withhold funding from states over policies allowing transgender athletes to compete in sports, curtailed sex education programs that referenced transgender people, and urged states to exclude undocumented students from discounted in-state tuition.
Legal and Practical Implications
Legal experts note that the lawsuit underscores the importance of congressional control over federal spending. Attempts by presidents to sidestep this authority have historically led to legal challenges under the Impoundment Control Act, which was passed in response to similar executive overreach in the 1970s.
For local school districts, the freeze created immediate uncertainty over staffing, program funding, and support for low-income communities.
Many districts were unsure whether they could sustain programs designed to retain teachers and provide essential after-school services.
The settlement ensures that the funding will be fully restored, but advocates say the temporary freeze demonstrates the vulnerability of public education programs to political maneuvering at the federal level.
