Federal

Judge Reverses Ed. Dept.'s Abrupt End to States’ Time to Spend COVID Relief

The judge’s order provides relief in the 16 states that sued along with the District of Columbia
By Mark Lieberman & Brooke Schultz — May 06, 2025 | Updated: May 06, 2025 4 min read
Conceptual illustration of a coin in the top section of an hour glass
  • Save to favorites
  • Print

Updated: This story has been updated to add additional comments.

A federal judge on Tuesday halted the Trump administration’s decision to effectively cancel more than $1 billion in K-12 education funding for more than a dozen states—but left the door open for the U.S. Department of Education to again terminate the funding after giving states advance notice.

Judge Edgardo Ramos said in the May 6 order that the 16 Democratic state officials who sued along with the District of Columbia had shown sufficient reason to halt a March 28 letter from Education Secretary Linda McMahon abruptly announcing that the administration had moved up the due date for spending remaining pandemic relief funds.

Ramos’ order prohibits the Education Department from enforcing or implementing the letter’s cancellation of those spending extensions for the 16 states and the District of Columbia through the course of litigation or until a subsequent court order. The department also cannot modify those extensions for the states that sued to spend their pandemic dollars without providing at least 14 days’ notice announcing a new deadline. His order doesn’t apply to states that didn’t participate in the lawsuit.

See Also

Education Secretary Linda McMahon arrives before President Donald Trump attends a reception for Women's History Month in the East Room of the White House, Wednesday, March 26, 2025, in Washington.
Education Secretary Linda McMahon arrives before President Donald Trump attends a reception for Women's History Month in the East Room of the White House, Wednesday, March 26, 2025, in Washington. In a letter Friday, McMahon told state leaders on March 28 that their time to spend remaining COVID relief funds would end that same day.
Jacquelyn Martin/AP

The Education Department did not immediately respond to a message seeking comment.

In the lawsuit, the states argued that the abrupt termination of the extensions was causing budget shortfalls.

New York Attorney General Letitia James, who led the coalition of states filing the lawsuit, said in a statement the injunction was a “major win” for students and teachers. New York lost access to $134 million in funds from the Education Department’s rescission, according to a news release from James’ office.

“The Trump administration’s illegal decision to cut off essential education funding put some of our most vulnerable students at risk of falling behind in school,” James said.

Ramos’ order endorsed at least one piece of the states’ argument—that the federal agency circumvented procedural steps it needed to take to change the spending deadline. The department could correct that procedural error by issuing a letter that provides states with sufficient notice of a changed deadline.

“It’s a pretty early step in the case, and it isn’t determinative of the outcome,” said Katie Roy, partner and general counsel with Education Resource Strategies, which consults with school districts.

States had raised concerns about harm to programs and students if funding were to stop

In her March 28 letter, McMahon told states that, by failing to meet earlier deadlines for spending COVID relief funding, states “ran the risk that the Department would deny your extension request.” McMahon said in the letter, sent after 5 p.m. on a Friday, that the deadline for spending the funds had passed that same day at 5 p.m.

“Extending deadlines for COVID-related grants, which are in fact taxpayer funds, years after the COVID pandemic ended is not consistent with the Department’s priorities and thus not a worthwhile exercise of its discretion,” she wrote, adding the department would consider extensions on “an individual project-specific basis.”

At a Tuesday hearing in the case, Ramos said the reasoning in McMahon’s letter was “not a reasonable explanation” and that Congress didn’t intend for the funding to end when the federal government declared the COVID-19 emergency to be over, Courthouse News Service reported.

More than 40 states had secured approval from the department—including some while McMahon was in charge—for up to 14 additional months to spend those dollars, largely for contracted expenses like construction and tutoring, when the education secretary ended those extensions. States had already faced a Sept. 30, 2024, deadline to commit to spending those funds for specific services and programs.

See Also

Republican presidential nominee former President Donald Trump speaks during a news conference held at Trump Tower, Friday, Sept., 6, 2024 in New York.
Donald Trump speaks during a news conference held at Trump Tower on Sept. 6, 2024 in New York. His education actions since returning to the White House in January 2025 have drawn numerous lawsuits alleging he's overstepping his authority.
Stefan Jeremiah/AP

In her letter, McMahon said that, instead of blanket approvals to extend the spending timeframe, the Education Department would consider project-by-project extension requests.

Along with the District of Columbia, the states that sued were Arizona, California, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Pennsylvania.

Court documents in the case show that the Education Department has started granting some extensions to spend money after McMahon’s March letter, and denying other requests.

Hayley Sanon, the principal deputy assistant secretary and acting assistant secretary for the office of elementary and secondary education, sent a letter May 2 approving continuing funds for four projects in Arizona, while denying four other requests from the state. In the denials, she explained that the projects did not directly support students or their academic recovery.

“I found the projects to be inconsistent with the Department’s priorities and thus not a worthwhile exercise of its discretion,” she wrote in her letter.

See Also

Person thinking to enter money maze puzzle.
iStock/Getty

Several state chiefs, including in Republican-led states such as Mississippi, pushed back on McMahon’s abrupt rule change, arguing that schools would be forced to default on contracts and cut vital services for students if she didn’t reverse course. But only Democratic state officials sued, which means that for now, only their states are getting relief from the court ruling.

Ramos, an appointee of former President Barack Obama, also directed the department to provide written notice to all agency staff and submit evidence to the court of that notice within three days.

Events

This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
School & District Management Webinar
The Principal's Role in Collective Efficacy and Student Outcomes
Learn practical strategies that help principals translate their confidence into stronger collective teacher efficacy and student outcomes.
Content provided by Otus
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Education Funding Webinar
What Schools Need to Know About the Federal Education Freedom Tax Credit
What schools need to know about the federal Education Freedom Tax Credit: A practical guide from a licensed teacher and policy expert.
Content provided by LearningSpring
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
School Climate & Safety Webinar
Building Your School Safety Roadmap: Key Priorities for the Upcoming Year
What should be on your school's safety roadmap this year? Join experts to discuss priorities, preparedness, and best practices.
Content provided by Evolv Technology & IdentiSys

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

Federal OpenAI's Models Probed Websites of Department of Education, Other Agencies
The department's office for civil rights was probed in an attempted hack, according to a report.
3 min read
FILE - The OpenAI logo is displayed on a cell phone in front of an image generated by ChatGPT's Dall-E text-to-image model, Dec. 8, 2023, in Boston. (AP Photo/Michael Dwyer, File)
Federal Trump Administration Moves to Limit Fixes for Systemic Racism in Schools
The Trump administration has limited remedies schools can use to address systemic racial injustice.
7 min read
Jovonia Lewis poses for a portrait outside of the Durham Board of Education building on Sept. 21, 2026, in Durham, N.C.
Jovonia Lewis poses for a portrait outside the Durham Board of Education building on Sept. 21, 2026, in Durham, N.C. In 2018, the U.S. Department of Education reached an agreement with the Durham district after finding it disproportionately suspended Black students. The second Trump administration has limited the remedies schools can use to address systemic racial injustice.
Matt Ramey/AP
Federal Trump Admin. Touts Ed. Dept.'s Help for States as It Tries to Shut It Down
The Trump administration pushes the Education Department's closure, while touting its help for states.
6 min read
Letters on the Department of Education building are missing after removal of America 250 banners, which included those of Booker T. Washington, Catharine Beecher and Charlie Kirk, on March 18, 2026, in Washington.
Letters on the Department of Education building in Washington are missing in this March 18, 2026 photo. The Trump administration continues to push for the agency's closure while also touting its help for states.
Allison Robbert/AP
Federal Opinion What’s Behind the Trump Administration's Push to Reform Head Start?
Assistant Secretary Alex Adams explains the Trump administration’s approach to the early-ed program.
•
7 min read
The United States Capitol building as a bookcase filled with red, white, and blue policy books in a Washington DC landscape.
Luca D'Urbino for Education Week