Overview

• The Trump administration abruptly ended Biden-era extensions allowing schools to spend COVID relief funds through March 2026, citing ample time for prior use.
• Seventeen states, led by New York and California, filed lawsuits against the U.S. Department of Education, arguing the decision exceeds administrative authority and violates federal law.
• California stands to lose $200 million, while New York faces a $134 million funding shortfall, jeopardizing critical programs for low-income and vulnerable students.
• Pandemic relief funds have supported essential services such as tutoring, mental health counseling, infrastructure upgrades, and resources for homeless students.
• The lawsuits seek to reinstate the original spending deadline approved by Congress, emphasizing the long-term educational recovery needs stemming from the COVID-19 pandemic.