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Feds restore funding to California and Arizona schools

Last updated: August 26, 2025 8:43 pm
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Feds restore funding to California and Arizona schools
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(The Center Square) — Arizona Attorney General Kris Mayes has struck a deal with the Trump administration to release $132 million of federal education funding that was previously withheld.

And in California, over $900 million in federal education funding will be returned, according to a press release from Attorney General Rob Bonta.

“Fortunately, after we filed our lawsuit, the Trump Administration backed down and released the funding it had previously withheld. Today’s agreement ensures the rest of this funding is released, as scheduled, in October, successfully resolving our lawsuit,” Bonta, a Democrat, said. “Over the past six months, state attorneys general have been a bulwark in the fight against the Trump Administration’s reckless and illegal efforts to slash, withhold, or condition federal funding, and we are not taking our foot off the gas.”

The U.S. Department of Education initially sent an email to various departments of education across the country. The department said it would not be “issuing obligating funds” for six formula funding programs.

Since July 1, education departments across the country have urged the administration to release the $6.8 billion frozen funds.

California and Arizona, along with 22 states and the District of Columbia, sued the administration, stating that this freeze was unconstitutional and unlawful.

In Arizona, approximately $132 million in federal education funding was frozen.

“It’s unlawful for President Trump to hold up this education funding and wreak havoc on Arizona’s students and families — and it’s having an immediate and devastating impact,” said Mayes in a news release.

Mayes, a Democrat, was part of efforts to secure an agreement between the multi-state coalition and the Trump administration to dismiss the case and ensure the remaining education funding would be returned by Oct. 3.

“I’m glad to dismiss one of the twenty-five lawsuits I’ve had to file against the Trump administration for breaking the law and essentially stealing from the people of Arizona, like in this case, funding for our public schools,” said Mayes. “If the President stops acting like he’s above the law and harming Arizonans, these lawsuits will stop accordingly. Unfortunately, it doesn’t seem like he’s stopping.”

On Aug. 1, Arizona received a notice from the Education Department that it would begin releasing previously withheld federal funds for the fiscal year.

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