Colorado and 23 other states sued the Trump administration Monday after the federal government unexpectedly froze $6.8 billion in education funding slated for K-12 schools nationwide during the 2025-26 academic year.
The lawsuit, filed in the U.S. District Court for the District of Rhode Island, alleges that the federal government illegally withheld money that was required, by law, to go to states on July 1. Other states joining Colorado — which is owed $80 million — include California, North Carolina, Kentucky and New Mexico. The District of Columbia is also part of the suit.
“I am here appalled; I am here in disbelief,” Colorado Attorney General Phil Weiser said during a news conference announcing the lawsuit. “…We will have the backs of parents, teachers and kids.”
The frozen K-12 funding was appropriated by Congress for students learning English, teacher training, and after-school and summer programs. But the U.S. Department of Education told state education officials earlier this month that the money was being withheld pending a review to ensure the programs align with President Donald Trump’s priorities.
“Congress holds the power of the purse — not the president,” California Attorney General Rob Bonta said during the news conference. “…Trump and (U.S. Education Secretary Linda McMahon) have no right to hold these funds back.”
Colorado school districts expected to receive about $70 million, and many have already budgeted the funds, including hiring employees for the new academic year. Another $10 million was earmarked for other grantees in the state, but the Colorado Department of Education didn’t say who they were.
Nationally, some of the money had been designated for after-school and summer programming run by Boys & Girls Clubs and the YMCA.
School districts have finalized their budgets for the 2025-26 academic year, which begins next month. Several metro Denver districts have said they will have to cut jobs and programs in the coming weeks if they don’t receive the money the federal government appropriated.
“There’s not ever been a disruption of dollars like this that had already been appropriated,” said Tracie Rainey, executive director of the Colorado School Finance Project. “For some of these districts, they rely on these type of dollars specially for the kind of services they can’t offer in their system. So, yes, this has huge impact as they are trying to close achievement gaps.”
Education leaders and advocates — from the state’s largest teachers union to the Colorado Rural Schools Alliance — have urged the Trump administration to immediately release the money. Gov. Jared Polis and Democratic members of Colorado’s congressional delegation echoed their calls.
“The decision to delay the distribution of congressionally appropriated education funds is a dangerous overreach of executive authority and a direct affront to public education, especially for communities that rely most heavily on these supports,” said Denver Public Schools Superintendent Alex Marrero and Board of Education President Carrie Olson in a joint statement earlier this month.
The Associated Press contributed to this report.
Get more Colorado news by signing up for our Mile High Roundup email newsletter.
Updated 12:40 p.m. July 14, 2025: This story has been updated to correct the number of states that have joined the lawsuit.
