Trump administration forced to release $110M in frozen school funds after Maryland lawsuit victory

Maryland Governor Wes Moore

BALTIMORE, MD – A multistate legal battle led by Maryland Attorney General Anthony G. Brown ended with a binding agreement requiring the Trump administration to fully release more than $110 million in previously frozen federal education funding for Maryland schools no later than October 3.

The resolution follows a lawsuit filed last month by a coalition of 23 attorneys general and two states, which challenged the Trump administration’s abrupt decision on June 30 to freeze funding for six long-standing U.S. Department of Education programs. The freeze came just weeks before the academic year was set to begin, placing critical programs at risk in Maryland and across the country.

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In Maryland, the withheld funding jeopardized after-school and summer learning programs, teacher training initiatives, and services for English learners. Attorney General Brown announced that under the terms of the settlement, the federal government must release all remaining funds, with Maryland already receiving a partial disbursement in late July.

The joint motion to dismiss the lawsuit, filed Tuesday, confirms that Maryland and other plaintiff states secured the full relief they sought — the complete restoration of funding for the fiscal year.

According to state officials, the withheld funds supported a wide range of educational services, including instruction for migrant students, classroom technology enhancements, teacher development, and adult education and workforce training programs. The funding also supports 21st Century Community Learning Centers that provide enrichment opportunities beyond the classroom.

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Attorney General Brown called the agreement a victory for public education in Maryland, stating that the Trump administration’s freeze was unlawful and unconstitutional. The original lawsuit cited violations of federal appropriations law, budgeting statutes, and the separation of powers under the Constitution.

By the end of July, the Department of Education notified states it would begin releasing the frozen funds, and Maryland received full confirmation of its award allocation in early August. The settlement ensures the final balance is delivered by early October.

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