School Districts Sue Trump Admin Over $6.8 Billion Funding Freeze

The plaintiffs say the freeze is illegal, while the administration says some grants had been designated for left-wing causes and ideological programs.

The U.S. Department of Education building in Washington on April 28, 2025. Madalina Kilroy/The Epoch Times

A coalition of school districts, teachers unions, parents, and advocacy groups has filed a lawsuit against the Trump administration, accusing federal officials of unlawfully freezing some $6.8 billion in education funds Congress had earmarked for programs such as after-school care.

Filed in U.S. District Court in Rhode Island on July 21, the lawsuit targets the U.S. Department of Education and the White House Office of Management and Budget (OMB).

The plaintiffs say the administration failed to meet a statutory July 1 deadline to release funds appropriated by Congress for after-school care, summer programming, English learner instruction, migrant education, and teacher training.

“For years, the Department has carried out these statutory mandates without incident,” the complaint states, noting that funds historically have been distributed on July 1.

On June 30, the Education Department informed states that it would not be issuing grant award notifications as scheduled, citing a new policy to review the programs to ensure the funds are spent in line with President Donald Trump’s priorities.

“Given the change in Administrations, the Department is reviewing the FY 2025 funding for the [Title I-C, II-A, III-A, IV-A, IV-B] grant program(s), and decisions have not yet been made concerning submissions and awards for this upcoming academic year,” the department said in a June 30 statement to the Texas Education Agency.

“The Department remains committed to ensuring taxpayer resources are spent in accordance with the President’s priorities and the Department’s statutory responsibilities.”

In a motion for a preliminary injunction, the plaintiffs argue that the funding freeze violates the Administrative Procedure Act, the Impoundment Control Act, and the U.S. Constitution’s separation of powers.

“Defendants’ actions have already resulted in mass chaos and irreparable harm,” the motion states, warning that schools are now canceling programs, laying off staff, and curtailing services for vulnerable students.

The department has not provided a timeline for concluding its review. The Education Department and OMB did not respond to requests for comment from The Epoch Times.

OMB has stated that the funds were being withheld to prevent the promotion of a “left-wing agenda,” per the motion. Education Secretary Linda McMahon said in May that she wants grant programs to be focused on “meaningful learning and expanding choice, not divisive ideologies.”

At the beginning of July, a spokesperson for OMB told RealClearPolitics that one example involved a New York public school using English-language learning funds to support immigrant advocacy organizations, while another cited the use of school improvement funds for a seminar focused on themes of “queer resistance in the arts.”

The plaintiffs include school systems from Alaska to Ohio, as well as major teachers’ unions and education advocacy groups. In statements accompanying the lawsuit, they described the freeze as devastating and politically motivated.

“Withholding these federal funds has created deep instability for our schools,” said Jharrett Bryantt, superintendent of the Anchorage School District in Alaska. “Districts like ours cannot plan responsibly or meet our obligations when longstanding federal commitments are withheld without warning.”

A teachers’ union leader in Ohio says that nearly $200 million in funding is at stake. “By lawlessly withholding nearly $7 billion—including more than $180 million for Ohio students—the Trump administration is showing that they are just as committed to putting new obstacles in front of those students,” said Melissa Cropper, president of the Ohio Federation of Teachers.

Last week, 24 states and the District of Columbia filed a separate lawsuit over the same funding freeze. That suit, also filed in federal court in Rhode Island, argues that the administration’s actions are unconstitutional and must be blocked immediately.

The case docket shows that the Trump administration has yet to file a response to that lawsuit, for which the judge set a July 28 deadline.

Meanwhile, Democratic lawmakers who are demanding that the Trump administration end what they describe as an illegal funding blockade.

On July 16, nearly three dozen Senate Democrats sent a letter to McMahon and OMB Director Russ Vought urging the immediate release of the congressionally approved funds.