Attorney General James Secures Major Victory as Federal Government Releases Billions in Withheld Education Funds

NEW YORK – New York Attorney General Letitia James today celebrated a major victory for students, families, and schools across the country as the U.S. Department of Education (ED) released nearly $7 billion in critical education funding that had been unlawfully frozen by the Trump administration. The reversal follows a lawsuit filed earlier this month by Attorney General James and 22 other attorneys general, as well as the governors of Pennsylvania and Kentucky, challenging ED’s abrupt decision to halt this funding. Today, the New York State Education Department (NYSED) received notice that all previously frozen grant funding has been awarded and will be released.

“This is a huge win for our schools, our students, and the rule of law,” said Attorney General James. “When the administration abruptly froze billions in education funding, they jeopardized afterschool childcare programs, teacher support services, and vital classroom resources just weeks before the new school year. Earlier this month, we took swift legal action, and today we are celebrating the results. I will always stand up to protect our students and New York State.”

“We are grateful that the federal government has fulfilled its commitment to the students of New York state by reinstating the grant funds that were previously withheld,” said NYSED Commissioner Betty A. Rosa. “These vital resources will empower both schools and districts to provide critical supports and services to their students, educators, and school communities. We thank the Attorney General and our congressional delegation for their collaboration in advocating for the restoration of this funding. The State Education Department and Board of Regents remain committed to working with all levels of government to ensure every student receives the high-quality education they deserve.”

On June 30, the Trump administration unlawfully froze funding for six congressionally authorized education programs just weeks before schools were set to open in many states. The funding supports a wide range of services, including education for English learners and immigrant children, classroom technology, after-school enrichment programs, adult education, mental health services, and workforce development initiatives. In New York, more than $463 million in federal funding was frozen overnight, leaving many summer programs unfunded and threatening services set to begin in the fall. The funds that were frozen constitute 13 percent of the state’s total K-12 education funding, and the majority goes directly to New York’s 730 school districts, which had to scramble to address major budget shortfalls.

On July 14, Attorney General James and the coalition filed their lawsuit and a motion for a preliminary injunction, arguing that the freeze violated multiple federal laws, including statutes authorizing and appropriating funds for the affected programs, federal budget procedures, and constitutional provisions like the separation of powers and the Presentment Clause. Today, ED sent New York grant award notices for all six of the impacted programs, confirming that the frozen funding would be released in its entirety. 

The release of this federal education funding means that critical programs can now resume just in time for the upcoming school year. This includes more than $125 million for teacher training and development, $107 million to improve school safety and classroom environments, and $102 million to support after-school and summer programs that working families rely on for childcare and enrichment. English language learners – especially in New York City, where nearly half of public school students speak a language other than English at home – will once again have access to vital literacy and language instruction. The funds also restore $52 million for adult education and workforce development programs, as well as $10 million to support immigrant students. Thousands of students will now be able to return to summer learning programs that had been canceled, and at least 67 full-time jobs at NYSED will be preserved.