Oregon AG’s Lawsuit Victory Forces Trump Administration to Restore $1 Billion in K-12 School Funding for Vulnerable Students
Oregon Attorney General Dan Rayfield, who joined the 16-state coalition challenging the US Department of Education’s (ED) threat to withhold federal funding to K-12 schools, won a court order yesterday forcing the Trump administration to restore states’ access to critical program funding.
The programs 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 and are funded by $1 billion in grants from the American Rescue Plan Act (ARPA), which the ED had previously determined the states could access through March 2026.
The AG’s coalition argued that the ED’s arbitrary and sudden termination of the states’ access to these funds caused a massive, unexpected budget gap. This would hurt students and teachers by cutting off vital education services.
Judge Edgardo Ramos of the United States District Court for the Southern District of New York issued a preliminary injunction yesterday ordering the ED to immediately restore states’ access to these critical funds as the case continues after the judge barred the ED from blocking states’ access to ARPA funding.
The ED is now prevented from enforcing a March 28, 2025, letter from Education Secretary Linda McMahon that rescinded states’ ability to access their awarded funding.
Rayfield said on the March 28 ED letter: “We stepped in to stop it, and the court backed us up.” He indicated that the funds were made available to help kids who’ve had it the hardest and said, “This is a win for Oregon students.”