Wisconsin has joined a lawsuit against the Trump administration's action to withhold $6.8 billion for education progams supporting English language learners, migrants, low-income children, adult learners and others. (Photo by Klaus Vedfelt/Getty Images)

Wisconsin Attorney General Josh Kaul joined 23 states and the District of Columbia Monday in suing the Trump administration for withholding $6.8 billion meant for six U.S. Department of Education programs, which help support English language learners, migrants, low-income children, adult learners and others. 

The funds, approved in the Full-Year Continuing Appropriations and Extensions Act 2025 and signed into law on March 15, are typically distributed to states by July 1. However, the Department of Education notified the Wisconsin Department of Public Instruction as well as other state education agencies on June 30 that they would be withholding the funds. 

“Depriving our schools of critical resources is bad for our schools, bad for students, and bad for Wisconsin,” Attorney General Josh Kaul said in a statement. “This unlawful funding freeze should be stopped.”

The Wisconsin DPI said in a statement that the federal agency gave no specific explanation for the action. Instead, the U.S. Department of Education said that “decisions have not yet been made concerning submissions and awards for this upcoming academic year” and “accordingly, the Department will not be issuing Grant Award Notifications obligating funds for these programs on July 1 prior to completing that review. The Department remains committed to ensuring taxpayer resources are spent in accordance with the President’s priorities and the Department’s statutory responsibilities.” 

The withholding of funds comes as the Trump administration continues to pursue closing the Department of Education with a plan to lay off more than 1,000 agency employees and resume drastically cutting the agency after getting the greenlight from the U.S. Supreme Court Monday. The Trump administration has also withheld other funds this year, including for grants for mental health in schools. A spokesperson for the Office of Management and Budget said in a statement about the review of education funding that “initial findings have shown that many of these grant programs have been grossly misused to subsidize a radical leftwing agenda.” 

The multi-state lawsuit argues that the freeze of the $6.8 billion violates federal laws and regulations that authorize and fund the programs, federal laws, including the Antideficiency Act and Impoundment Control Act, that govern the federal budgeting process and the constitutional separation of powers doctrine and the Presentment Clause. 

The coalition of states is requesting that the court provide declaratory relief by finding the freeze is unlawful and offer injunctive relief by requiring the release of the funds. 

Over $72 million is being withheld from Wisconsin. Without the funding, school districts face funding shortfalls for programs that have already been planned, DPI may have to lay off 20 employees and programs at Wisconsin’s technical colleges are in trouble with $7.5 million in adult education grants being withheld.

State Superintendent Jill Underly said in a statement that Wisconsin schools depend on the federal funding distributed through an array of programs to support students. There are five programs affected: Title I-C, which supports migrant education, Title II-A, which goes towards teacher training and retention, Title III-A, which supports education of English language learners, Title IV-A, which is for student enrichment and after-school programs and Title IV-B, which supports community learning centers.

“Make no mistake, stopping this money has had and will continue to harm our families and communities,” Underly said. 

Wisconsin schools have received funding through these federal programs for decades to help carry out related programs. According to DPI, federal funding makes up about 8% of funding for Wisconsin schools with nearly $850 million coming into the state. 

Sen. Tammy Baldwin alongside 31 other U.S. senators penned a letter to Office of Management and Budget Director Russell Vought and Education Secretary Linda McMahon, calling on them to release the money. 

“This delay not only undermines effective state and local planning for using these funds to address student needs consistent with federal education law, which often takes place months before these funds become available, but also flies in the face of the nation’s education laws which confers state and local educational agency discretion on permissible uses of federal formula grant funds,” the senators wrote. “We are shocked by the continued lack of respect for states and local schools evidenced by this latest action by the administration.”

“It is unacceptable that the administration is picking and choosing what parts of the appropriations law to follow, and you must immediately implement the entire law as Congress intended and as the oaths you swore require you to do,” the lawmakers said. 

The lawmakers also said the “review” being undertaken by the administration appears to be intentional to delay the funding and will result in budget cuts for schools. They said it is happening “with no public information about what the review entails, what data the administration is examining or a timeline for such review.”

The U.S. Supreme Court ruled in an unsigned order to allow President Donald Trump to dismantle the U.S. Department of Education. (Photo by Jane Norman/States Newsroom)

WASHINGTON — The U.S. Supreme Court on Monday allowed the Trump administration, for now, to proceed with mass layoffs and a plan to dramatically downsize the Education Department ordered earlier this year.

The decision from the nation’s highest court marks a major victory for President Donald Trump, who has sought to overhaul the federal role in education.

The order was unsigned, while Justices Sonia Sotomayor, Elena Kagan and Ketanji Brown Jackson dissented, indicating a 6-3 decision.

The dissent, authored by Sotomayor, was scathing.

“The majority is either willfully blind to the implications of its ruling or naive,” she wrote. “But either way the threat to our Constitution’s separation of powers is grave.”

The Supreme Court’s order temporarily suspends lower court orders that: forced the agency to reinstate more than 1,300 employees gutted from a reduction in force, or RIF, effort; blocked the department from carrying out Trump’s executive order to dismantle the department; and barred the agency from transferring some services to other federal agencies.

In a statement Monday, Education Secretary Linda McMahon celebrated the decision, saying “today, the Supreme Court again confirmed the obvious: the President of the United States, as the head of the Executive Branch, has the ultimate authority to make decisions about staffing levels, administrative organization, and day-to-day operations of federal agencies.”

“While today’s ruling is a significant win for students and families, it is a shame that the highest court in the land had to step in to allow President Trump to advance the reforms Americans elected him to deliver using the authorities granted to him by the U.S. Constitution,” she said.

“The U.S. Department of Education will now deliver on its mandate to restore excellence in American education. We will carry out the reduction in force to promote efficiency and accountability and to ensure resources are directed where they matter most — to students, parents, and teachers.”

A coalition of teachers, unions and school districts that sued over Trump’s order to eliminate the department and the mass layoffs said they were “incredibly disappointed by the Supreme Court’s decision to allow the Trump-Vance administration to proceed with its harmful efforts to dismantle the Department of Education while our case moves forward.”

“This unlawful plan will immediately and irreparably harm students, educators and communities across our nation. Children will be among those hurt the most by this decision. We will never stop fighting on behalf of all students and public schools and the protections, services, and resources they need to thrive,” they added.

Challenge from Democratic state AGs, unions

The labor and advocacy coalition and a slew of Democratic attorneys general each sued in March over some of the administration’s most consequential education initiatives.

One of the lawsuits comes from a coalition of Democratic attorneys general in Arizona, California, Colorado, Connecticut, Delaware, the District of Columbia, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New York, New Jersey, Oregon, Rhode Island, Vermont, Washington state and Wisconsin.

The other lawsuit was brought by the American Federation of Teachers, its Massachusetts chapter, AFSCME Council 93, the American Association of University Professors, the Service Employees International Union and two school districts in Massachusetts.

A Massachusetts federal judge consolidated the lawsuits and granted the states’ and groups’ preliminary injunction in May.

The administration appealed that decision, leading to a June decision from the U.S. Court of Appeals for the 1st Circuit keeping in place the district court’s order.

The Trump administration then asked the Supreme Court to intervene. 

The U.S. Education Department directed its federal student loan servicers to restart interest accrual on Aug. 1 for participants in the Biden-era SAVE plan. (Catherine Lane/Getty Images)

WASHINGTON — Interest accrual on the debt of nearly 7.7 million student loan borrowers enrolled in the Saving on a Valuable Education plan will resume Aug. 1, the U.S. Education Department said Wednesday.

The Biden-era income-driven repayment plan better known as SAVE saw legal challenges from several GOP-led states beginning in 2024, creating uncertainty for borrowers who were placed in an interest-free forbearance amid that legal limbo.

The SAVE plan, created in 2023, aimed to provide lower monthly loan payments for borrowers and forgive remaining debt after a certain period of time.

In February, a federal appeals court upheld a lower court injunction that blocked the SAVE plan from going into effect. The department said Wednesday that it’s instructing its federal student loan servicers to start charging interest Aug. 1 to comply with court orders.

When the SAVE plan forbearance ends, “borrowers will be responsible for making monthly payments that include any accrued interest as well as their principal amounts,” the department said in a written announcement.

“For years, the Biden Administration used so-called ‘loan forgiveness’ promises to win votes, but federal courts repeatedly ruled that those actions were unlawful,” Education Secretary Linda McMahon said in a statement alongside the announcement.

“Congress designed these programs to ensure that borrowers repay their loans, yet the Biden Administration tried to illegally force taxpayers to foot the bill instead,” she added.

McMahon said her department is urging borrowers under the SAVE plan to “quickly transition to a legally compliant repayment plan.”

“Borrowers in SAVE cannot access important loan benefits and cannot make progress toward loan discharge programs authorized by Congress,” she said.

‘Unnecessary interest charges’

Mike Pierce, executive director of the Student Borrower Protection Center, blasted the department’s decision in a statement Wednesday.

“Instead of fixing the broken student loan system, Secretary McMahon is choosing to drown millions of people in unnecessary interest charges and blaming unrelated court cases for her own mismanagement,” he said.

“Every day, we hear from borrowers waiting on hold with their servicer for hours, begging the government to let them out of this forbearance, and help them get back on track — instead, McMahon is choosing to jack up the cost of their student debt without giving them a way out.”

The agency has taken heat for its sweeping actions in the months since President Donald Trump took office as he and his administration look to dismantle the department.

The department is also mired in a legal challenge over some of its most significant efforts so far, including laying off more than 1,300 employees earlier this year as part of a reduction in force effort, an executive order calling on McMahon to facilitate the closure of her own agency and Trump’s proposal to transfer some services to other federal agencies. These actions have been temporarily halted in court.

Meanwhile, President Donald Trump signed a massive tax and spending cut bill into law last week, part of which forces any borrower under the SAVE plan to opt in to a different repayment plan by July 1, 2028, or be automatically placed in a new, income-based repayment plan.