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New York state’s Education Department is having trouble getting reimbursed for $363 million from the federal government, according to state officials who blamed the problem on mass layoffs and other changes at the U.S. Department of Education.
“Just days after the announcement of the [reduction in force], we have already had challenges drawing down funds owed to New York by the Department,” Daniel Morton-Bentley, the deputy commissioner of legal affairs at the state’s Education Department, wrote in a Monday court filing.
Morton-Bentley’s allegation is part of a broader lawsuit filed this month by 21 state attorneys general, including New York Attorney General Letitia James, that seeks to challenge President Donald Trump’s efforts to get rid of half the department’s staff.
In the wake of a March 20 executive order designed to begin the process of closing the federal Education Department, the attorneys general asked a Massachusetts federal judge on Monday for a preliminary injunction to block layoffs and stop efforts to transfer some of its key functions to other agencies, citing the delayed reimbursements to New York, among other issues.
“We sued to stop Trump from dismantling the Department of Education, and today we are seeking a court order to protect students and their families,” James said in a Monday statement.
The claim of payment delays is notable because it is one of the first concrete harms state education officials have linked to Trump’s effort to eliminate the federal Education Department. Other states, including Illinois and New Jersey, have also struggled to access funding or receive guidance from federal staffers, the filing alleges.
The money in question is tied to the Education Stabilization Fund, a tranche of federal relief dollars meant to help schools recover from the pandemic. New York state has received $9.3 billion from the program and was granted additional time to liquidate another $363 million, according to Morton-Bentley. The Education Stabilization Fund includes COVID relief dollars for K-12 schools through a program called ESSER.
Under the Trump administration, the U.S. Education Department began requiring additional sign off from federal staffers to keep the money flowing “to ensure taxpayer funds are expended responsibly,” according to a Feb. 19 press release.
New York state officials contend that efforts to slash the Education Department’s staff has directly affected the employees who are supposed to sign off on the reimbursement requests.
“We have been instructed to send our requests to a new email address but are waiting on additional guidance and instructions for the approval of drawdown requests,” Morton-Bentley wrote.
A representative for the New York State Education Department did not immediately respond to questions about what programs or school districts received the $363 million — and what impact the delayed reimbursement might have. They also did not clarify whether the state has formally submitted a reimbursement request or is waiting for additional guidance before doing so.
New York City Education Department officials said earlier this month they have not yet experienced cuts tied to upheaval in the U.S. Education Department.
A spokesperson for the federal Education Department did not respond to a request for comment. But federal officials wrote to state policymakers earlier this month claiming that sharply reducing the Education Department’s headcount would not adversely affect them.
“These reductions are strategic cuts to offices and programs,” wrote Principal Deputy Assistant Secretary Haley Sanon. The changes “will not directly impact students and families but rather empower states and localities.”
Alex Zimmerman is a reporter for Chalkbeat New York, covering NYC public schools. Contact Alex at azimmerman@chalkbeat.org.
