On Monday, Texas AFT joined school districts, parents, education unions, and nonprofit organizations in a lawsuit against the Trump Administration for unlawfully withholding nearly $6 billion in education funding.
On Friday, just hours prior to this writing, an official said the administration intends to release that funding. We’ll withhold comment until that money is disbursed in entirety and the court has made a finding in our case. For now, though, we are cautiously optimistic this harmful delay may soon be at an end.
Why We’re Suing
The lawsuit — handled by Democracy Forward, Jacobson Lawyers Group, and Deluca, Weizenbaum, Barry, and Revins — seeks to compel the U.S. Department of Education (DOE) and the White House Office of Management and Budget (OMB) to release critical funding that supports low-income students, English learners, after-school programs, immigrant students, and teacher training.
Congress appropriates funds through long-standing programs under the Elementary and Secondary Education Act (ESSA). By law, the DOE was required to distribute this year’s funding to states by July 1. Instead, the department has refused to release the funds, citing a so-called “programmatic review” to ensure spending aligns with the Trump-Vance Administration’s political priorities, in direct violation of Congress’s constitutional authority over federal spending.
“Our public schools do not have the luxury of being able to ‘wait and see’ if the funding they need comes through. Jobs rely on this funding, and families rely on it for vital services,” said Zeph Capo, president of Texas AFT, in a statement. “Texas has lost more education funding than other Republican-led state in this funding freeze. More than $660 million in federal funding intended for Texas schools has just disappeared, without warning. That is money that our districts budgeted for when they made decisions about staffing and student services. That is money that parents expect to be in their kids’ classrooms this fall.”
What These Funds Support
There are five grants for pre-K-12 schools affected by this illegal freeze:
- Title I, Part C: funding for migrant education
- Title II, Part A: grants for educator development
- Title III, Part A: funds for English learners
- Title IV, Part A: funds for student support and enrichment programs
- Title IV, Part B: funding for 21st-century learning centers (after-school and summer programs)
Of the original $6 billion in withheld funding, about $1.3 billion has now been released by the DOE. All of that money is from Title IV, Part B. While an official within the administration said it planned to release the rest of the funding on Friday, that money has not yet been disbursed.
Harm to Texas Schools
Without these funds, schools across the country face imminent cuts to academic programs, staffing, and student services, particularly in under-resourced communities.
In terms of impact, Texas trails only California in the amount our schools stand to lose if these funds are not delivered. The $660 million being withheld makes up roughly 16% of all DOE funding for pre-K-12 Texas schools.
Among school districts nationwide, three Texas districts make the Top 100 for greatest total funding risk from this freeze:
| School District | Total Funding at Risk | Poverty Rate | % English Learner | % Students of Color | % White |
| Houston ISD | $7,933,000 | 28.9% | 32% | 90% | 10% |
| Dallas ISD | $7,875,000 | 23.5% | 44% | 94% | 6% |
| Aldine ISD | $4,116,000 | 33.5% | 39% | 98% | 2% |
This isn’t just a threat to large districts. More Texas districts crack the Top 100 nationwide at the greatest per-pupil funding risk:
| School District | Total Funding Risk Per Pupil | Poverty Rate | % English Learner | % Students of Color | % White |
| Boles ISD | $2,512.29 | 22.8% | 5.3% | 27.1% | 72.9% |
| Lometa ISD | $2,488.96 | 21.4% | 12.6% | 57.3% | 42.8% |
| Santa Rosa ISD | $1,733.80 | 29.7% | 19.4% | 99.2% | 0.8% |
| Freer ISD | $1,509.21 | 35.7% | 2.9% | 94.7% | 5.3% |
| Karnes City ISD | $1,459.64 | 21.6% | 6.1% | 76% | 24% |
| New Summerfield ISD | $1,442.38 | 24% | 45.4% | 88.2% | 11.8% |
| Hearne ISD | $1,303.64 | 31% | 17% | 91.9% | 8.1% |
| Coleman ISD | $1,218.20 | 26.3% | 1.9% | 34% | 66% |
| Jim Hogg County ISD | $1,181.82 | 35% | 7.1% | 97.8% | 2.2% |
“We are tired of our public schools, educators, and students being used as political punching bags,” Capo said. “If those in charge won’t meet us at the table, then our only option is to see them in court.”
About the Lawsuit
Our coalition of plaintiffs argue that the administration’s actions violate the Administrative Procedure Act, the Impoundment Control Act, and the constitutional separation of powers.
The coalition includes:
- AFT Pennsylvania
- Anchorage School District
- California Federation of Teachers
- Cincinnati Public Schools
- Fairbanks North Star Borough School District
- Florida Education Association
- Florida Parent Teacher Association (FLPTA)
- Illinois Federation of Teachers
- Kuspuk School District
- New York State United Teachers
- Ohio Federation of Teachers
- Rhode Island Federation of Teachers and Health Professionals
- Texas AFT
The case is Anchorage School District et al. v. Department of Education et al. You can read the full complaint here.
Other Federal Education Updates
Department of Education Layoffs
In another round of bad news for public education, the Supreme Court has allowed President Donald Trump to move forward with his plan to dismantle the DOE, starting with the layoffs of nearly 1,400 employees.
The ruling lifted an injunction against the cuts won by a coalition of school districts, educators, and labor unions, including AFT national.
Sheria Smith, a Texan and the president of Local 252 of the American Federation of Government Employees, described how these layoffs are already affecting schools in an interview with CNN’s Wolf Blitzer.
Student Loans
On Aug. 1, nearly 8 million borrowers enrolled in the Biden-era SAVE plan will start accruing interest on their student loans under a directive from Secretary of Education Linda McMahon.
Additionally, the DOE has just suspended student loan forgiveness under the long-standing Income-Based Repayment plan. About 2 million borrowers are enrolled in this plan.
Meanwhile, President Trump’s “Big Beautiful Bill” also makes sweeping changes to how federal student loans are disbursed and repaid.
Confused? No wonder. Our union will do everything we can to advocate for our members’ needs on student debt relief, as well as keep you informed of what is changing. This coming Tuesday, you can join us on Zoom for a Summer School session focused exclusively on higher education updates.