MI Joins Lawsuit Over Trump Administration's Education Funding Freeze

Attorney General Dana Nessel announced that Michigan is joining 22 states in a lawsuit over the Trump administration's education funding freeze. The pause affects more than $171 million in funding in Michigan and is part of a nearly $7 billion halt in education funding nationwide.

Nessel and the other state attorneys general are seeking an injunction to stop the funding freeze, saying it violates federal funding statutes.

"Courts across the country have made it clear to (President) Donald Trump that he and his administration do not have the authority to unilaterally block funding that Congress has already approved," Nessel said. "These education grants are designed to help Michigan students thrive. By freezing them, the Trump White House is not just breaking the law but jeopardizing our kids’ future."

In a video, Nessel said the funding freeze would cause many educational programs to shut down, adding, "already, ongoing summer learning programs have been left unfunded."

The pause is part of a review to ensure grants align with Trump’s priorities, but leaves states and schools in limbo as they budget for programs this summer and in the upcoming school year, introducing new uncertainty about when — or if — they will receive the money.

Without the money, schools say they won’t be able to provide free or affordable after-school care for low-income kids while their families work, and may not be able to hire staff to teach children who are learning English. Even classes or summer camps already underway this summer could be in jeopardy.

According to Nessel, the freeze affects six programs in Michigan, totaling approximately $171 million. Impacted programs – administered through the Michigan Departments of Education (MDE), Lifelong Education, Advancement, and Potential (MiLEAP), and Labor and Economic Opportunity (LEO) – include:

• Title I-C – Education of Migratory Children, which supports the educational needs of students whose families frequently move for seasonal agricultural or fishing work.
• Title II-A – Supporting Effective Instruction, which provides supplemental funding to help local education agencies (LEAs) implement professional development leadership initiatives that strengthen teaching and improve student academic achievement.
• Title III-A – English Language Acquisition, Language Enhancement, and Academic Achievement, which supports English learners and enhances multilingual education services.
• Title IV-A – Student Support and Academic Enrichment Grants, which aims to improve student achievement by increasing the capacity of states, LEAs, schools, and local communities to offer students a well-rounded education, improve school conditions for learning, and improve the use of technology to boost academic achievement and digital literacy.
• Title IV-B – 21st Century Community Learning Centers, which offers out-of-school academic support, enrichment, youth development, and family engagement for K-12 students.
• Adult Basic Literacy; Integrated English Literacy; and Civics Education Grants, which ensure adult education providers can support learners in developing basic reading, writing, mathematics, and English language skills. Programs also help adults receive high school completion or equivalency and gain the workforce skills needed for employment.

Under federal statutes and regulatory requirements, the Department of Education makes around 25 percent of the funds for these programs available to states on or about July 1 to allow state and local educational agencies to plan their budgets for the upcoming academic year. According to Nessel, the states have complied with funding conditions set by the law, but were notified on June 30 that the Department of Education would not be “obligating funds for” the six programs on July 1.

"This funding freeze has immediately thrown into chaos plans for the upcoming academic year. Local education agencies have approved budgets, developed staffing plans, and signed contracts to provide vital educational services under these grants," according to a news release from Nessel's office. "Now, as a result of the Trump Administration’s actions, States find themselves without sufficient funding for these commitments, just weeks before the start of the 2025-2026 school year."

Essential summer school and afterschool programs, which provide childcare to working parents, are already being affected.

"The abrupt freeze is also wreaking havoc on key teacher training programs as well as programs that make school more accessible to children with special learning needs, such as English learners," Nessel's office said.

In the statement, Michigan State Superintendent of Public Instruction Dr. Michael F. Rice applauded Nessel's effort to "fight this illegal withholding and other unlawful federal actions over the last six months that hurt children in Michigan and nationwide."

Nessel joined the lawsuit with attorneys general in Arizona, California, Colorado, Connecticut, Delaware, the District of Columbia, Hawai’i, Illinois, Maine, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont, Washington, and Wisconsin, as well as the states of Kentucky and Pennsylvania.

The suit asks a judge to declare the funding freeze unlawful under the Appropriations Act, Antideficiency Act, Administrative Procedures Act, and U.S. Constitution, including the separation of powers doctrine.