AG James Wins Court Order Restoring Access to $1B In Education Funds to States

The preliminary injunction issued today by Judge Edgardo Ramos of the United States District Court for the Southern District of New York orders ED to immediately restore states’ access to these critical funds as the case continues.

Judge Ramos’ preliminary injunction bars ED from blocking states’ access to ARPA funding. The preliminary injunction order issued today prevents ED from enforcing a March 28, 2025 letter from Education Secretary Linda McMahon rescinding states’ ability to access their awarded ARPA funding.

“The Trump administration’s illegal decision to cut off essential education funding put some of our most vulnerable students at risk of falling behind in school,” said Attorney General James. “This is a major win for our students and teachers who are counting on this funding to help them succeed. I will continue to defend New York’s schools and ensure they get the resources they need to provide a quality education to everyone.”

Background: To combat the long-term effects of the COVID-19 pandemic, ARPA funded three education-related programs to help support states’ school systems and direct more resources to the most vulnerable students. These three programs – Homeless Children and Youth (HCY), Elementary and Secondary School Emergency Relief (ESSER), and Emergency Assistance to Nonpublic Schools (EANS) – provide essential resources to help schools and students recover from the lasting impacts of the pandemic. In New York, EANS and ESSER funds support critical repairs and improvements to school buildings like the construction of additional classroom space, the purchase of additional library books and playground equipment, and the addition of wheelchair-accessible buses.

Attorney General James and the coalition asserted that ED’s arbitrary and abrupt termination of the states’ access to these funds is causing a massive, unexpected budget gap that will hurt students and teachers by cutting off vital education services.

Joining Attorney General James in filing this lawsuit are the attorneys general of Arizona, California, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New Mexico, Nevada, Oregon, and the District of Columbia, along with the Governor of Pennsylvania.