US Dept of Justice Agrees to Release Frozen Federal Education Funding

After almost two months of a state-federal standoff, $110M of federal education funding will be released to Maryland following an agreement between the US Department of Justice, 23 attorneys general, and two states.

Monday, August 25, terms were published that secured the release of billions of federal education dollars previously withheld by the US Department of Education in conjunction with the US Office of Management and Budget. Maryland schools are set to receive $110M of those funds, with the release date of the second tranche of funding due from the federal government no later than Oct 3, 2025.

From the filing:

The multi-state coalition and the Trump administration today jointly filed to dismiss the case under the terms of an agreement that ensures the remaining funding is released on time, providing Maryland and the multi-state coalition with the full relief they had sought in the lawsuit.

As previously covered on Conduit Street, effected funding jeopardized five categories of money in Maryland:

  • Migrant Education – supports migratory children transitioning into school and through graduation
  • Supporting Effective Instruction – supports improving the quality of educators
  • English Language Acquisition – supports students learning English
  • Student Support and Academic Enrichment Program – supports improving student academic achievement
  • Nita M. Lowey 21st Century Community Learning Centers – supports educational services during non-school hours, primarily in under served and low-performing schools

The recent agreement covers five primary terms:

  1. The federal administration agrees to make the second tranche of funds for the impacted programs available no later than October 3, 2025;
  2. Both parties agree that the complaint shall be dismissed without prejudice;
  3. This stipulation applies only to FY 2025-26 funds for the impacted programs described
    in the complaint;
  4. All parties will bear their own fees and costs; and
  5. The court retains jurisdiction to enforce the terms of the stipulation, until such time as
    all funds of the second tranche have been made available to the plaintiffs in keeping
    with the above recitals.

Read the full agreement to dismiss filed on Monday, August 25.