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Wisconsin joins lawsuit seeking release of school funding withheld by Trump administration

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)

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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.”

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