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A group of 16 Democratic attorneys general along with Pennsylvania Gov. Josh Shapiro filed a lawsuit Thursday against the Trump administration for halting access to hundreds of millions of dollars of federal pandemic relief money.
School districts had earmarked the money for tutoring struggling students, supporting homeless children, upgrading HVAC systems to improve indoor air quality, and a host of other programs to address the long-term effects of the COVID-19, the lawsuit said.
Under extensions granted by the Biden administration, schools were supposed to have until March 2026 to spend the money. But on March 28, Education Secretary Linda McMahon said the U.S. Department of Education would no longer pay expenses related to pandemic recovery, cutting off access to the remaining COVID aid.
“COVID is over,” a spokesperson for McMahon’s department previously said in justifying the decision. “States and school districts can no longer claim they are spending their emergency pandemic funds on ‘COVID relief’ when there are numerous documented examples of misuse.”
The day McMahon sent the letter, the department gave states a 5 p.m. deadline to use or lose the money.
Thursday’s lawsuit, led by New York Attorney General Letitia James, claims that McMahon’s sudden about-face terminating states’ access to the funds was an “arbitrary and capricious” violation of federal law, creating massive budget gaps for state education departments and local school districts. She said this will lead to serious harm to students nationwide.
New York, for instance, lost access to $134 million in funds due to McMahon’s move, according to the suit. Pennsylvania lost $185 million, according to Shapiro’s office. New Jersey had nearly $85 million in remaining funds, and Illinois had about $77 million.
The lawsuit also alleges that the federal department failed to provide a sufficient explanation when terminating access to the funds, and that the move was contrary to Congress’ intent.
The suit is seeking a preliminary and permanent court order preventing the administration from blocking access to the money so the states can continue to access the funds.
The U.S. Department of Education did not immediately respond for comment.
“Cutting school systems’ access to vital resources that our students and teachers rely on is outrageous and illegal,” James said in a statement. “As a proud graduate of New York public schools, I will continue to use every tool at my disposal to fight for our schools and make sure every child has access to a quality education.”
School communities are still recovering from the pandemic, and the needs the funds aim to address haven’t disappeared. National and international tests show that student performance remains below pre-pandemic levels. Chronic absenteeism also remains high.
New York had earmarked the remaining funds to repair school buildings and construct additional classroom space, as well as purchase additional library books, playground equipment, and wheelchair-accessible buses.
The state also planned to use the money for programs that help homeless youth, by providing food and basic necessities, classroom supplies, and specialized training for teachers who work with these students.
In Pennsylvania, one district that had been granted $20 million to replace HVAC systems and make other building repairs was already in the middle of these projects. Another district was spending its allocation on adding electronic locks to school entrances.
Now, Shapiro said, local taxpayers will have to foot the bill.
“Congress and the federal government made a commitment to our students, and school districts across Pennsylvania started construction to make schools safer, delivered supplies to students, and invested to create more opportunity for our kids based on that commitment,” Shapiro said in a statement. “Now the Trump Administration is trying to renege on its commitments to our kids and leave Pennsylvania taxpayers holding the bag.”
The lawsuit is part of a barrage of legal challenges against the Trump administration’s various education directives.
Chalkbeat Philadelphia bureau chief Carly Sitrin contributed reporting.
Amy Zimmer is the bureau chief for Chalkbeat New York. Contact Amy at azimmer@chalkbeat.org.
