State Attorneys General & Governors Take Trump Admin to Court for Withholding $6 Billion in School Funding

A coalition of nearly two dozen state attorneys general, joined by Democratic governors, sued the Trump administration on Monday in Rhode Island’s federal court after over $6 billion in federal education funding was paused—barely a month before the new school year. North Carolina Attorney General Jeff Jackson, leading the suit, told ABC News the move “plainly violates the law” and the Impoundment Control Act of 1974, which mandates congressional review whenever the executive delays or halts budget disbursements.

Released to Congress on July 1, the halted grants include funding for teacher training (Title II‑A), after‑school programs (Title IV‑B), student support services (Title IV‑A), English language learning (Title III‑A), migrant education (Title I‑C), adult education, suicide prevention, and workforce training. AG Jackson warned that continued inaction by the courts could devastate school districts nationwide and said North Carolina alone may have to lay off as many as 1,000 educators.

The pause came after a June 30 memo from the Department of Education initiated a “programmatic review.” The Office of Management and Budget claimed some programs “grossly misused” funds to push what they called a “radical leftwing agenda,” but have yet to comment on duration of the hold. Education leaders from Washington, California, Alabama, and beyond say the delay disrupts planning and that, without clarity by September, districts will start scrapping core programs, with some layoffs becoming permanent.

Alabama schools chief Eric Mackey warned that delays hit rural, high-poverty districts hardest, and the National Education Association projects losses as high as $100 million in Alabama, $150 million in Washington, and over $900 million in California. California and Washington attorneys general have joined the lawsuit.

AG Jackson urged parents to get loud and stay vocal, reinforcing that “the separation of powers isn’t optional when funded programs help millions of kids.” Parents and educational advocates are reportedly preparing their own lawsuits, warning that if courts don’t weigh in quickly, this pause could grow into a full-blown crisis for students and educators across America.