"Trump Administration backed down": Federal deal secures release of $900 million in frozen education funds for California schools
California Attorney General Rob Bonta and a multistate coalition secured a settlement ensuring the release of more than $900 million in federal education funding after suing the Trump Administration over an unlawful funding freeze.
California Attorney General Rob Bonta announced Monday that the Trump Administration has agreed to release the full balance of federal education funding previously frozen, resolving a multistate lawsuit and safeguarding hundreds of millions of dollars for schools across the state.
The agreement, filed in federal court in Rhode Island, requires the U.S. Department of Education to provide the remaining funds—totaling more than $900 million in California alone—by October 3, 2025. The funding supports programs for English learners, teacher training, afterschool and summer learning, and workforce development.
Dr. Jennifer Trimpey
Background of the Dispute
On June 30, 2025, the Trump Administration abruptly froze funding for six longstanding federal education programs, weeks before schools in many states were set to reopen. Attorneys general from 23 states, along with Pennsylvania and Kentucky governors, sued on July 14, alleging the freeze was unconstitutional, unlawful, and disruptive to critical school programs.
Shortly after the lawsuit was filed, the administration released an initial portion of the money in late July. Monday’s agreement ensures that the remainder of the funds—the “second tranche”—will be distributed no later than October 3.
Joint Motion Filed in Court
According to the Joint Motion to Dismiss Without Prejudice, both sides stipulated that the federal government would release the second tranche of money without new restrictions. In return, the states agreed to dismiss the lawsuit without prejudice, preserving their ability to refile if the administration fails to comply. The court will retain jurisdiction to enforce the agreement until all funds are distributed.
Attorney General Bonta’s Statement
“The Trump Administration upended school programs across the country when it recklessly withheld vital education funding just weeks before the school year was set to begin,” Bonta said in a statement.
“Fortunately, after we filed our lawsuit, the Trump Administration backed down and released the funding it had previously withheld. Today’s agreement ensures the rest of this funding is released, as scheduled, in October, successfully resolving our lawsuit.”
Bonta emphasized that attorneys general have played a key role in defending education programs against what he described as the administration’s “relentless attacks.”
What Comes Next
The agreement covers only the 2025–26 fiscal year’s allotment for the impacted programs. Both sides will bear their own legal costs. The coalition of states signaled that they remain vigilant against future efforts to slash or condition federal education funding.
If the Trump Administration fulfills its commitment, California schools will soon have access to the full $900 million needed to sustain crucial academic and support services.
