Education Funding

Trump’s Education Funding Maneuvers Were Illegal, Judges Rule

Judges ruled in suits about teacher-training grant cancellations and withheld education research money
By Mark Lieberman — September 18, 2026 4 min read
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Collage of Trump signing an executive order, money, desks, torn paper, legal pad.

The second Trump administration’s education agenda suffered two setbacks in federal court on Thursday, as judges ruled in separate cases that the U.S. Department of Education unlawfully canceled teacher-preparation grants and imposed new funding conditions for education research.

The rulings add to a growing pile of legal verdicts reversing or neutralizing the Trump administration’s efforts to assert unprecedented executive authority over federal spending, including for education.

They also come as the administration advances a slew of regulatory efforts that would give it more power to direct federal spending—and halt it—according to the president’s political priorities.

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

Lawmakers recently delayed implementation of the White House Office of Management and Budget’s high-profile grantmaking changes until mid-December at the earliest, but the Education Department is forging ahead with collecting public comments on rule changes of its own that it’s aiming to finalize by the end of 2026.

The Education Department’s rule changes “would give the administration more discretion on the reasons that they can cancel grants,” said Amanda Miller, who oversaw higher education programs for the agency under former President Joe Biden.

More than 100 lawsuits have challenged federal actions on K-12 and higher education since President Donald Trump’s second term began in January 2025, including more than 30 lawsuits over efforts to freeze, disrupt, or cancel education funding, according to an Education Week analysis.

Many, though not all, of those cases have culminated in rulings that the actions in question likely violated federal law and the U.S. Constitution. Even after those rulings, most cases remain ongoing and could take years to fully wrap up.

Here’s a detailed look at the latest rulings, and their implications for the broader landscape of legal battles over federal policy changes.

Teacher-preparation grants

What the administration did: Less than a month into President Donald Trump’s second term, the U.S. Department of Education abruptly terminated tens of millions of previously awarded federal grant dollars for expanding the pipeline of aspiring educators. Affected grants included 31 through the Supporting Effective Educator Development (SEED) program and 72 through the Teacher Quality Partnership (TQP) program, according to Education Week’s database of canceled grants.

Why the administration did it: Dozens of identical termination letters from top Education Department officials told grantees their projects violated Trump’s executive order cracking down on diversity, equity, and inclusion initiatives.

Who the plaintiffs are: Democratic attorneys general from eight states (California, Colorado, Illinois, Maryland, Massachusetts, New Jersey, New York, and Wisconsin) sued on March 7, 2025.

What the judge said: The administration failed to follow the legally prescribed procedure for canceling grants, wrote Angel Kelley, a federal judge in Massachusetts, in a Sept. 17 ruling. Those termination decisions also illegally punished funding recipients for following the rules and requirements of their grants, she wrote.

“Agencies may not choose to reject, terminate, or otherwise penalize grant applications based on the very criteria Congress expressly require the agency to promote,” Kelley wrote.

What the agency says: In response to Thursday’s ruling, the Education Department shared a statement: “Taxpayer dollars should support preparing teachers for meaningful student learning, expanding the pipeline of high-quality teachers, and retaining top talent—not funding divisive ideology or racial preferences.”

Why the ruling matters: In her ruling, Kelley, an appointee of former President Joe Biden, quotes from U.S. Supreme Court Justice Kentaji Brown Jackson, who wrote a dissent in April 2025 as five of her fellow justices voted to allow the Trump administration to proceed with canceling the grants. Jackson emphasized that efforts to expand opportunities for aspiring teachers of color don’t violate the law.

What the judge said: The administration failed to follow the legally prescribed procedure for canceling grants, wrote Angel Kelley, a federal judge in Massachusetts, in a Sept. 17 ruling. Those termination decisions also illegally punished funding recipients for following the rules and requirements of their grants, she wrote.

The ruling also comes as the Education Department prepares to award 16 new SEED grants and 12 new TQP grants in the coming days, according to a Sept. 9 agency press release. Kelley barred the agency from applying the same executive order to decisions for awarding those grants.

Kelley’s ruling doesn’t mention relief for grantees affected by the terminations. Previously, she had ruled the Court of Federal Claims, not her court, has jurisdiction over restoring canceled funds.

Meanwhile, rulings have yet to arrive for recently filed cases challenging similar grant cuts affecting special education and English-learner services.

Education research funding

What the administration did: The White House Office of Management and Budget, under Trump-appointed director Russell Vought, has repeatedly stalled the delivery of hundreds of millions of congressionally appropriated dollars for the Institute of Education Sciences, the Education Department’s research arm.

OMB recently unlocked some fiscal 2025 funds for IES more than a year later than usual, leaving the institute only a few months to spend them before their two-year window expires. The office continues to withhold more than $465 million in fiscal 2026 funds the institute was supposed to be able to access six months ago; those funds expire Sept. 30, 2027.

Why the administration did it: For decades, OMB has used a routine process known as “apportionment” to dole out congressional appropriations to agencies. Congress established the process to help ensure that agencies don’t overspend their allotted funds.

But in the OMB section of the conservative policy document known as Project 2025 (pages 76-82), Vought lays out a vision of the apportionment process as a tool for the president to impose political preferences on congressional spending.

For IES, OMB has executed apportionment actions with legally binding footnotes that require IES to comply with Trump’s anti-DEI executive order, as well as with an OMB-approved plan for spending the funds. Elsewhere, the Trump administration has slashed IES staffing and proposed massive funding cuts for the institute.

Who the plaintiffs are: The National Center for Learning Disabilities (special education advocates); Knowledge Alliance (education research advocates); BNP Education Partners (education research firm); and the Massachusetts Teachers Association (state teachers’ union) sued on June 30.

What the judge said: Judge Allison D. Burroughs of the U.S. District Court of Massachusetts wrote in her Sept. 17 ruling that she’s skeptical of OMB’s assertion that it has the authority to use apportionment footnotes to impose policy priorities on federal agencies.

To make that case, OMB cited a single sentence in a federal spending law that mentions the office can attach footnotes to its apportionment filings. “The Court does not find that this ‘modest’ and ‘subtle’ footnote reference … authorizes the sweeping power to utilize binding apportionment footnotes to advance the Executive Branch’s policy objectives,” Burroughs wrote.

As for the delayed apportionments for IES funding, Burroughs declined to make a definitive ruling. Instead, she instructed the Education Department to report to the court on Sept. 28 whether it’s on track to finish spending the remaining $180 million in IES funds from fiscal 2025 by the Sept. 30 deadline.

“If it appears, as September 30 approaches, that Defendants have misled the Court and the funds will not be obligated by the deadline, the Court may reconsider whether there has been undue delay warranting injunctive relief,” Burroughs wrote.

See Also

Russell Vought, Director of the Office of Management and Budget (OMB) testifies on the OMB budget during a House Appropriations Financial Services and General Government Subcommittee hearing on Capitol Hill in Washington, DC, on June 4, 2025.
Russell Vought, director of the White House Office of Management and Budget, testifies during a House Appropriations subcommittee hearing on Capitol Hill in Washington on June 4, 2025. OMB has been slow to release congressionally appropriated funding to the Institute of Education Sciences, the U.S. Department of Education's research arm. IES now has just weeks to spend $180 million before it expires.
SAUL LOEB / AFP via Getty Images

Burroughs has also yet to rule on the continued withholding of fiscal 2026 funds for IES. Even so, plaintiffs hailed the ruling as an early victory.

“Setting aside the imposition of these Executive Order policy directives through the apportionment process ensures that OMB cannot leverage the apportionment process—and threaten agency officials with administrative and criminal penalties tied to that process—in order to dictate how congressional appropriations are spent,” says a statement from Protect Democracy, the transparency nonprofit representing the plaintiffs.

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