Attorney General James Sues Trump Administration for Blocking Access to Hundreds of Millions of Dollars in Education Funds for States

NEW YORK – New York Attorney General Letitia James today led a coalition of 15 other attorneys general and the Governor of Pennsylvania in suing the Trump administration to restore states’ access to critical Department of Education (ED) programs that support low-income and unhoused students and provide funding for other services to address the long-term effects of the COVID-19 pandemic on K-12 students. On March 28, ED notified states that it was unilaterally ending access to hundreds of millions of dollars in grants from the American Rescue Plan Act (ARPA), which ED had previously determined the states could access through March 2026. The ED’s sudden change in position and arbitrary termination of states’ access to these funds has created a massive budget gap for state education departments and local school districts that will cause serious harm to students throughout the country. New York alone has lost access to $134 million in funds due to ED’s decision.  

“The Trump administration’s latest attack on our schools will hurt our most vulnerable students and make it harder for them to thrive,” said Attorney General James. “Cutting school systems’ access to vital resources that our students and teachers rely on is outrageous and illegal. As a proud graduate of New York public schools, I will continue to use every tool at my disposal to fight for our schools and make sure every child has access to a quality education.” 

To combat the long-term effects of the COVID-19 pandemic, ARPA funded three education-related programs to help support states’ school systems and direct more resources to the most vulnerable students. These three programs – Homeless Children and Youth (HCY), Elementary and Secondary School Emergency Relief (ESSER), and Emergency Assistance to Nonpublic Schools (EANS) – provide essential resources to help schools and students recover from the lasting impacts of the pandemic. In New York, EANS and ESSER funds support critical repairs and improvements to school buildings like the construction of additional classroom space, the purchase of additional library books and playground equipment, and the addition of wheelchair-accessible buses.  

These programs also support critical services to help vulnerable students reach their full potential and recover from missed classroom time and other negative effects of the pandemic. For example, more than a dozen schools in the Capital Region were depending on continued access to ARPA funds to provide tutoring services that help students who fell behind due to COVID-19. HCY funds are critical to support unhoused youth in New York schools. School systems count on HCY grants to provide food, personal care items, classroom supplies, field trip funding, and specialized training for teachers who work with unhoused students.

Attorney General James and the coalition assert that ED’s arbitrary and abrupt termination of the states’ access to these funds is causing a massive, unexpected budget gap that will hurt students and teachers by cutting off vital education services. If access to this critical funding is not restored, states will be unable to provide essential public services, pay hundreds of public employees, or provide quality education to K-12 students. 

Attorney General James and the coalition argue that ED’s decision to abruptly cut off access to awarded funds violates the Administrative Procedure Act because it reversed its prior decision to allow states to access the funds through March 2026 and instead immediately terminated the states’ access without a sufficient explanation and contrary to Congress’ intent. With this lawsuit, Attorney General James and the coalition are seeking a preliminary and permanent court order preventing ED from arbitrarily changing its position so the states can continue to access these essential funds. 

Joining Attorney General James in filing this lawsuit are the attorneys general of Arizona, California, Delaware, Hawai’i, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New Mexico, Nevada, Oregon, and the District of Columbia, along with the Governor of Pennsylvania.