Schools Sue Trump Administration for Withholding $7 Billion (1)

School districts, unions, and associations from several states are suing the Trump administration for allegedly unlawfully withholding about $7 billion in education funds.

The administration announced it wouldn’t disburse funds required by the Elementary and Secondary Education Act until it ensures that schools aren’t using funds to promote a “left-wing agenda,” according to the groups’ complaint filed Monday in the US District Court for the District of Rhode Island.

“Resource-starved local school districts rely heavily on these funds to serve their students, especially those who are from low-income backgrounds, are English learners, or are migratory,” the complaint says.

The groups allege the government’s policy violates the Administrative Procedure Act and the US Constitution. They seek declaratory and injunctive relief.

The US Department of Justice didn’t immediately respond to a request for comment.

This complaint comes shortly after the US Supreme Court issued an order allowing the administration to resume dismantling the US Department of Education. The Supreme Court’s order put on hold a ruling that said the administration’s actions would leave the department unable to perform duties required under US law.

The plaintiffs here say ESEA, enacted in 1965, aims to combat poverty by strengthening the quality of education in the nation’s elementary and secondary schools. ESEA provides general financial assistance for local educational agencies with a high concentration of students from low-income families, and has grant programs that support after-school programs and teacher training.

The department said June 30 that it adopted a new policy under which it wouldn’t release funds without a review to ensure schools spend them in alignment with President Donald Trump’s policies, the complaint says.

This change constitutes a final agency action that violates the APA because the department didn’t provide a reasoned explanation for the new policy, the plaintiffs say.

The department’s action also violates the APA by conditioning grants, allocations, and allotments on non-statutory criteria, the plaintiffs allege.

The complaint also says the government’s new policy violates the constitutional separation of powers by unlawfully denying disbursement of funds from Congress, and refusing to comply with Congress’ mandates to make grants and allot funds.

The Trump administration lacks authority to impose conditions on the education funds that Congress didn’t require, including conditions intended to advance President Trump’s “unrelated policy goals,” the plaintiffs say.

DeLuca, Weizenbaum, Barry & Revens Ltd., Democracy Forward Foundation, and Jacobson Lawyers Group PLLC represent the plaintiffs.

The case is Anchorage School Dist. v. US Dep’t of Educ., D.R.I., No. 1:25-cv-00347, complaint filed 7/21/25.