24 States Sue Trump Over $6 Billion In Frozen Funds

Jul. 14, 2025, 4:58 pm ET

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  • 24 states and DC sue President Trump administration to release $6B in frozen education funds
  • Funds support after-school programs, migrant education, and teacher training
  • States claim freeze violates federal law and disrupts school budgets

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Essential Context

A coalition of 24 states and Washington, D.C., filed a federal lawsuit Monday challenging the President Trump’s abrupt freeze of $6 billion in education grants. The funds, typically released July 1, were halted June 30 during a program review. States argue the freeze violates the Impoundment Control Act and disrupts critical school programs.

Core Players

  • 24 states + DC (including CA, NY, PA, KY)
  • President Trump administration (Education Secretary Linda McMahon, OMB Director Russell Vought)
  • Key lawmakers: Sens. Mark Kelly (AZ), Rep. Greg Stanton (AZ)

Key Numbers

  • $6B – Total frozen education funds
  • $939M – California’s share of blocked funds
  • 24 – States participating in lawsuit
  • July 16 – Start date for some Arizona school districts

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The Catalyst

“With no rhyme or reason, the President Trump Administration abruptly froze billions of dollars in education funding just weeks before the school year,” said California Attorney General Rob Bonta. The freeze occurred June 30 during a program review, leaving states scrambling to adjust budgets.

Inside Forces

The administration claims the pause ensures funds aren’t used for “radical leftwing agendas,” citing examples like New York schools promoting immigrant advocacy groups. States counter that the freeze violates the Impoundment Control Act, which requires congressional approval for fund withholdings.

Power Dynamics

States face immediate financial strain as budgets were finalized before the freeze. Arizona lawmakers warned districts already signed contracts for the upcoming school year, which begins July 16 in some areas.

Outside Impact

Programs at risk include after-school activities, migrant education, English language support, and anti-bullying initiatives. Over 100 House Democrats urged immediate fund release, calling the freeze “chaotic” for schools.

Future Forces

Legal challenges will test the administration’s authority to withhold congressionally approved funds. A favorable court ruling could force immediate fund release, while a loss might embolden similar executive actions.

Data Points

  • June 30, 2025 – Funds frozen during program review
  • July 14, 2025 – Lawsuit filed in Rhode Island federal court
  • July 16, 2025 – School starts in some Arizona districts
  • 1974 – Impoundment Control Act established

The legal battle highlights tensions between executive authority and congressional appropriations. The outcome could set precedents for future funding disputes while determining the fate of critical education programs nationwide.