States Sue Trump as School Crisis Looms Over Funding Halt

More than two dozen U.S. states are taking legal action against President Donald Trump’s administration over its decision to withhold nearly $6.8 billion in education funding meant for after-school, summer, and other essential programs.

The lawsuit, filed in federal court in Providence, Rhode Island, argues that the administration overstepped its authority.

It further argues that the administration violated the Constitution by bypassing Congress’s exclusive control over federal spending.

Led by attorneys general and governors from 24 states and the District of Columbia, the coalition claims the Trump administration’s freeze has created widespread disruption in school districts across the country.

The lawsuit targets the Department of Education and the Office of Management and Budget (OMB).

It accuses both agencies of unlawfully delaying funds already approved by Congress.

“This is plainly against the law,” said North Carolina Attorney General Jeff Jackson in an interview with ABC News.

“It’s not just unconstitutional, it’s a direct violation of the Impoundment Control Act.

“This is not a complicated case.”

Under the 1974 Impoundment Control Act, the executive branch is prohibited from unilaterally withholding funds allocated by Congress unless it formally notifies lawmakers and obtains their approval.

The plaintiffs argue that the Trump administration failed to follow these procedures when it abruptly halted funding for six education programs.

The frozen funds were designated for a range of initiatives.

These include support for migrant farmworker families, English language instruction, teacher recruitment, academic enrichment, and scholarships for underrepresented students.

The move also affected LGBTQ-focused educational content and financial assistance for immigrant students, prompting further outcry from advocacy groups.

The lawsuit claims the administration was required by law to distribute the funds to the states by July 1.

However, on June 30, the Education Department informed states that the money would not be released.

It cited an “ongoing programmatic review” and a broader shift in administrative priorities under President Trump’s leadership.

A spokesperson for OMB defended the decision, claiming that preliminary findings suggested certain grants were being used to “subsidize a radical leftwing agenda.”

Critics, however, called the justification vague and politically motivated.

Education leaders across the country say the consequences have already begun to take shape.

According to the plaintiffs, the sudden freeze has led to:

• the cancellation of summer school programs,
• elimination of after-school care, and,
• abrupt disruptions in teacher training initiatives — all just weeks before the new academic year begins.

“If the courts don’t act quickly, the damage could be severe,” Jackson warned.

“School districts are already facing immediate harm.

“Some are being forced to consider laying off staff, including nearly 1,000 educators in our state alone.”

Alabama State Superintendent of Education Eric Mackey echoed that concern, emphasizing the impact on vulnerable populations.

“This will disproportionately hurt students with the greatest needs,” Mackey said.

“In rural, high-poverty areas, the loss of these funds is devastating.

“It only makes it harder to educate kids who are already at a disadvantage.”

Critics of the freeze argue that the Trump administration not only violated constitutional limits but also undermined decades of bipartisan efforts to support low-income and underserved students.

They accuse the administration of weaponizing the federal budget to push ideological goals, with little regard for the real-world consequences facing communities.

Christy Gleason, executive director of Save the Children Action Network, whose organization operates after-school programs in 41 rural schools across the South and Pacific Northwest, warned that time is running out.

“The school year starts in just a few weeks,” she said.

“It’s not too late to reverse this decision, but the window is closing fast.

“These kids need support, and they need it now.”

The lawsuit seeks an immediate injunction to force the release of the frozen funds, arguing that any further delay violates both statutory requirements and constitutional principles.

As legal proceedings unfold, state officials remain hopeful that the courts will act swiftly to protect students and schools from what they describe as an unprecedented misuse of executive power.

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