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yesterday

Federal Judge Temporarily Blocks Trump Administration’s Rescission of $1 Billion in School COVID Relief Funds

Seventeen states successfully argued that the abrupt funding cuts violated federal law and jeopardized critical student recovery programs.

U.S. Secretary of Education Linda McMahon shakes hands with Annette Albright next to U.S. President Donald Trump during an event to sign executive orders in the Oval Office at the White House in Washington, D.C., U.S., April 23, 2025. REUTERS/Leah Millis/File Photo
FILE - Education Secretary Linda McMahon does a television interview at the White House, April 16, 2025, in Washington. (AP Photo/Alex Brandon, File)
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Overview

  • U.S. District Judge Edgardo Ramos issued a preliminary injunction restoring over $1 billion in unspent COVID-19 education relief funds to 17 states while litigation continues.
  • The lawsuit, led by New York Attorney General Letitia James and joined by 15 other attorneys general and Pennsylvania Governor Josh Shapiro, challenges the legality of the March 28 rescission order by Education Secretary Linda McMahon.
  • The funds, originally allocated under the American Rescue Plan Act, were intended for pandemic recovery efforts such as tutoring, mental health support, and infrastructure upgrades in schools.
  • Plaintiffs argued that the funding cuts were arbitrary, capricious, and contrary to Congress’s intent, while the Trump administration claimed the extensions were inconsistent with departmental priorities.
  • The injunction applies only to the plaintiff states, requiring the Department of Education to notify employees of the restored access within three days and barring further enforcement of the rescission during the legal proceedings.