Agreement Forces Trump Administration To Release Withheld Education Funds

Attorneys general from 24 states, including Washington’s Nick Brown, have secured an agreement requiring the Trump administration to release billions in federal education funding that was frozen just weeks before the school year.

Under the terms of the agreement, the U.S. Department of Education must release the full balance of the withheld funds by October 3. In Washington, nearly $137 million in K-12 funding and more than $13 million for adult education and workforce development will now be restored.

Last month, Brown and 23 other attorneys general joined the District of Columbia in suing the Trump administration, alleging it illegally froze funding for six long-standing programs that support students and educators. The decision came on June 30, one day before the money was due to be distributed to states, and officials cited a “review” tied to the president’s policy priorities. The sudden move, states argued, violated federal law, decades of precedent, and the Education Department’s own regulations.

“Making sure our kids have what they need to learn should be something we can all agree on,” Brown said. “I’m pleased that we resolved this case quickly and restored the vital education funding the Trump administration unlawfully tried to cancel.”

The lawsuit argued that the freeze imperiled key programs, including after-school and summer learning opportunities, teacher training, and English-language instruction. In Washington alone, funding supports thousands of students in public schools and adult learners enrolled in programs at colleges, libraries, and community centers.

Days after the lawsuit was filed, the administration released a portion of the withheld funding. The remainder will now be distributed under the settlement, which dismisses the case but guarantees states the relief they sought.

Washington State Superintendent Chris Reykdal said the outcome protects programs Washington families rely on.

“This outcome was made possible through a bipartisan effort—both in and outside of the courtroom—to ensure students have the programs and support they are relying on for their academic success in the upcoming school year,” Reykdal said. “Implementing and protecting intentional and targeted investments for the students who need them most is not a political issue—it’s a longstanding American value. Thank you to Attorney General Nick Brown and his office for their impactful work on this case and others.”

Nate Humphrey, executive director of the Washington State Board for Community and Technical Colleges, said restoring funds will allow adult education programs to continue serving tens of thousands of residents.

“I’m encouraged by the decision to release funding for the Basic Grant and the Integrated English Literacy and Civics Education grant,” Humphrey said. “Now our colleges can focus on their mission of teaching tens of thousands of students across Washington state as they study for their high school diploma or GED, learn English,

math, and digital literacy skills, and train for jobs. We’re grateful to the Attorney General’s Office for taking a lead role in supporting Washington’s students.”

The case drew national attention because of the size of the funding at stake. Nationwide, more than $7 billion in formula-based grants was affected. These included programs for English learners, children of migratory workers, teacher professional development, technology in the classroom, and community learning centers that provide academic and extracurricular enrichment.

The lawsuit, led by attorneys general from California, Colorado, Massachusetts, and Rhode Island, described the freeze as unconstitutional. It argued that Congress, not the executive branch, controls federal spending, and that the Department of Education had no authority to withhold formula funds already approved by Congress.

In Washington, the potential impact was immediate. The Office of the Superintendent of Public Instruction warned that summer school and after-school programs could be canceled, staffing plans disrupted, and programs for students with special needs jeopardized. The state Board for Community and Technical Colleges estimated that withholding more than $13 million would have directly disrupted programs for adults learning English, pursuing diplomas or GEDs, and preparing for jobs.

Brown said the quick resolution avoids those worst-case scenarios and reinforces the principle that federal funding cannot be withheld without legal authority.

“Student success and wellbeing is a nonpartisan issue,” Brown said when announcing the lawsuit last month. “It’s inexcusable that the federal government would choose to wreak havoc on local school systems like this as they prepare for the upcoming school year. We’re fighting for every dollar our students are owed.”

The Trump administration has faced multiple court challenges this year for attempting to withhold federal funds appropriated by Congress. Courts have already intervened in disputes over transportation and health funding, ruling against the administration’s authority to freeze funds without congressional approval.

Under Tuesday’s agreement, the administration will release all remaining withheld education funds by October 3, resolving the states’ complaint in full. For Washington, that means the return of nearly $150 million in funding to support students, teachers, and adult learners.