TRENTON, NJ — New Jersey will receive the full balance of previously frozen federal education funds after Attorney General Matthew J. Platkin reached a legal agreement with the Trump Administration, ending a high-stakes lawsuit filed just weeks before the start of the school year.
Whille Platkin fought against the Trump administration for the money, many districts across New Jersey are facing closures, larger classes, teacher layoffs, faculty cuts, curriculum cuts, and mergers due to the Murphy administration’s unfair school funding formula penalize suburban districts.
Many living in those mostly Republican leaning districts feel that Murphy’s Department of Education is intentionally punishing children in those districts who did not vote for Phil Murphy.
The deal, announced Monday, ensures that more than $158 million earmarked for critical state education programs — including after-school services, teacher preparation, and English language learning support — will be fully released no later than October 3. The funding had been abruptly frozen by the U.S. Department of Education on June 30, triggering a multi-state lawsuit led by New Jersey and joined by 23 other attorneys general.
The Trump Administration initially released a portion of the funding earlier this month, and the remainder will now be distributed following a joint agreement filed by both sides to dismiss the case.
Platkin, in announcing the settlement, said the freeze threatened support for students with special needs, low-income districts, and summer learning programs across New Jersey. The lawsuit, filed in mid-July, alleged that the funding pause violated multiple federal laws and constitutional provisions.
The funding in question had supported a range of initiatives across the state for decades, including community learning centers, workforce development programs, and teacher training. The hold placed those services in jeopardy just as districts were preparing for the 2025–2026 academic year.
New Jersey has already received official Grant Award Notifications confirming the release of the first round of funds. Under the terms of the agreement, all remaining payments must be completed within five weeks.
The resolution brings an end to weeks of uncertainty for school administrators, families, and education advocates concerned about the potential delay in resources vital to student achievement and equity.