California Attorney General Rob Bonta has reached an agreement with the Trump Administration to ensure the release of all remaining federal education funds that had been frozen earlier this year. The funds, which total over $900 million for California, were withheld just weeks before the start of the school year, affecting programs for after-school and summer learning, teacher preparation, and support for students learning English.
Attorney General Bonta co-led a coalition of 23 attorneys general and two states in filing a lawsuit against the Trump Administration. The lawsuit challenged what they described as an unconstitutional and arbitrary decision by the U.S. Department of Education to freeze funding for six longstanding educational programs. After legal action was initiated, part of the withheld funding was released by the administration.
On August 25, both parties filed a joint motion to dismiss the case following an agreement that guarantees all remaining funds will be distributed by October 3, 2025. “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,” said Attorney General Bonta. “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. Over the past six months, state attorneys general have been a bulwark in the fight against the Trump Administration’s reckless and illegal efforts to slash, withhold, or condition federal funding, and we are not taking our foot off the gas. Our kids deserve so much better than what this anti-education Administration has to offer, and we will continue to fight to protect them from this President’s relentless attacks.”
The freeze affected several established programs used by California and other states for decades. These include educational services for migrant children and English learners; initiatives aimed at improving classroom instruction; community learning centers providing academic enrichment; as well as adult education and workforce development efforts.
Bonta’s coalition argued that freezing these funds violated federal statutes governing education appropriations and budgeting processes as well as constitutional principles such as separation of powers.
Following initial legal actions in July 2025—including a motion for preliminary injunction—the U.S. Department of Education notified California officials that impounded funds would begin being released at month’s end.
Attorney General Bonta has previously taken legal steps on behalf of California schools regarding issues such as termination of grant funding for K-12 teacher preparation programs; staff reductions within ED; conditions placed on K-12 education aid; discontinuation of mental health grants; along with securing $200 million in additional relief related to pandemic impacts on schools.
A copy of the motion to dismiss with stipulations is available here.
