Colorado and 22 other states sue Trump administration over $6.8 billion in withheld education funding

Jessica Seaman, The Denver Post on Jul 14, 2025

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Colorado and 22 other states sued the Trump administration Monday after the federal government unexpectedly froze $6.8 billion in K-12 education funding slated for schools nationwide during the 2025-26 academic year.

The lawsuit was filed in the U.S. District Court for the District of Rhode Island and alleges that the federal government illegally withheld money that was required, by law, to go to states on July 1. Other states joining Colorado — which is owed $80 million — include California, Rhode Island, North Carolina, Kentucky and New Mexico. The District of Columbia is also part of the suit.

“I am here appalled; I am here in disbelief,” Colorado Attorney General Phil Weiser said during a news conference announcing the lawsuit. “We will have the backs of parents, teachers and kids.”

The frozen K-12 funding was appropriated by Congress for students learning English, teacher training, and after-school and summer programs. But the U.S. Department of Education told state education officials earlier this month that the money was being withheld pending a review and hasn’t said if it will be released.

“Congress holds the power of the purse — not the president,” California Attorney General Rob Bonta said during the news conference. “…Trump and (U.S. Education Secretary Linda McMahon) have no right to hold these funds back.”

Colorado school districts expected to receive about $80 million, and many have already budgeted the funds, including hiring employees for the new academic year.

School districts have already finalized their budgets for the 2025-26 academic year, which begins next month. Several districts have said they will have to cut jobs and programs in the coming weeks if they don’t receive the money the federal government promised.

Education leaders and advocates — from the state’s largest teachers union to the Colorado Rural Schools Alliance — have urged the Trump administration to immediately release the money. Gov. Jared Polis and Democratic members of Colorado’s congressional delegation echoed their calls.

“The decision to delay the distribution of congressionally appropriated education funds is a dangerous overreach of executive authority and a direct affront to public education, especially for communities that rely most heavily on these supports,” said Denver Public Schools Superintendent Alex Marrero and Board of Education President Carrie Olson in a joint statement earlier this month.

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