US President Donald Trump and First Lady Melania Trump are greeted by California Governor Gavin Newsom upon arrival at Los Angeles International Airport in Los Angeles, California, on January 24, 2025, to visit the region devastated by the Palisades and Eaton fires. (Photo by Mandel NGAN / AFP) (Photo by MANDEL NGAN/AFP via Getty Images)
Sacramento, California – California, alongside a coalition of Democratic-led states, filed suit Monday against the Trump administration over its decision to withhold nearly $6.8 billion in federal education funding — including an estimated $939 million earmarked for California schools. The lawsuit, filed in federal court in Rhode Island, argues the administration’s actions are unconstitutional and threaten essential services in school districts across the country just weeks before classes resume.
The funding in question was already approved by Congress and signed into law, with school districts planning around its scheduled release on July 1. The money supports a range of longstanding programs: after-school tutoring, teacher training, digital literacy, services for English learners, and support for migrant students. While the total amount represents less than 1% of California’s education budget, districts had already made hiring and program decisions with the funds in mind.
Instead of distributing the grants, the Department of Education issued a brief notice on June 30 indicating it would not “obligate funds” for these programs. The freeze left school administrators scrambling. Los Angeles Unified School District, the second largest in the nation, expects to lose $110.2 million. Superintendent Alberto Carvalho said hundreds of positions are now at risk, even as the district prepares to use reserves to maintain core services — a short-term fix that undermines long-term financial planning.
State officials say the freeze is arbitrary and politically motivated. Programs that support immigrant and English-learner students — often in districts represented by Republicans — have come under particular scrutiny by the administration. A Trump official, speaking anonymously, suggested that some of the funds were being used for “segregated academic instruction” for new English learners, and claimed that such programs violated administration policy priorities.
Yet many of the school districts most affected by the freeze sit squarely in Republican territory. According to an analysis by the think tank New America, 91 of the 100 most heavily impacted districts are in GOP-held congressional districts, with large numbers in states like Florida, Georgia, West Virginia, and California. These are areas where federal support is not abstract — it keeps programs running and staff employed.
The lawsuit is being led by attorneys general from California, Massachusetts, Rhode Island, and Colorado, as well as Democratic governors from states with Republican attorneys general. In a recent webinar, Colorado Gov. Jared Polis emphasized the damage to day-to-day school operations. “Teachers don’t know if they’re reporting to work. Schools have to make impossible decisions at the eleventh hour,” he said.
This legal battle is only the latest in a broader war over public education and federal oversight. Last week, the Trump administration sued California over transgender inclusion in school sports, threatening even more federal dollars — potentially up to $44 billion — based on alleged civil rights violations.
California Attorney General Rob Bonta called the freeze “blatantly illegal,” and warned that it risked the academic success of an entire generation. For now, districts across the country are bracing for a school year clouded by legal uncertainty and budget chaos.
