A coalition of 24 states and the District of Columbia filed a landmark lawsuit in federal court this week, alleging that the U.S. Department of Education and Office of Management and Budget unlawfully froze over $6 billion in funding for vital K-12 and adult education programs. The states argue this freeze, implemented without warning on the eve of the new fiscal year, threatens to disrupt public education across the country.
On June 30, 2025, state officials received an email from the Department of Education stating that funds for six formula grant programs, ranging from support for English learners and migrant children to teacher development and adult basic education, would not be disbursed as scheduled on July 1. The department cited a need for an ongoing “review” to ensure compliance with “the President’s priorities.”
States claim this abrupt funding freeze is unlawful and unprecedented, violating decades-old statutes that require timely distribution of these critical funds. According to the complaint, these federal dollars are essential for the smooth opening of schools, teacher training, afterschool programming, and adult education services that hundreds of thousands rely on each year.
The coalition of states makes several key legal claims:
- Violation of Federal Law: The plaintiffs argue that the freeze breaches numerous federal statutes, especially congressional appropriations acts and regulations requiring funds to be available on July 1 for approved state programs.
- Overreach of Executive Authority: The suit alleges the freeze is an unconstitutional usurpation of congressional power over federal spending, in violation of the separation of powers and the Presentment Clause.
- Breach of the Administrative Procedure Act: The complaint contends that the funding freeze is arbitrary, capricious, and not in accordance with the law. Plaintiffs also say the agencies unlawfully withheld or unreasonably delayed mandatory federal actions.
- Procedural Failures: The lawsuit notes urgent harms caused to states and local school agencies, which had already planned budgets and hired staff based on an expected continuity in federal support.
Impact on Education Nationwide
The complaint details the far-reaching instability created by the funding freeze:
- Summer school and afterschool programs across several states have already been cancelled.
- Teacher professional development contracts are in jeopardy, and layoffs have commenced.
- Programs for English learners, migrant children, and adult literacy are facing severe cutbacks or shutdowns.
- Local and state education agencies lack the certainty to staff, plan, or reimburse essential services for the coming school year.
The controversial freeze comes amid a pattern cited in the complaint, where this administration has been enjoined by courts for similar withholding of federal funds in other contexts in recent months. Plaintiffs emphasize that Congress, not the Executive branch, holds the “power of the purse,” and that these programs are not subject to policy-based reviews at the President’s discretion once states have met legal requirements.
The states are seeking both a preliminary and permanent injunction to block the funding freeze, along with judicial orders compelling the immediate release of the withheld funds.
