Colorado Attorney General Phil Weiser filed a lawsuit in coordination with more than 20 other states Monday against the Trump administration, accusing it of unlawfully freezing approximately $80 million in federal education funding intended for Colorado schools.
The freeze, announced June 30 by the Office of Management and Budget and the U.S. Department of Education, has thrown local school districts, including Jefferson County, Adams 12 Five Star Schools, Westminster Public Schools, Weld RE-8 and 27-J Schools, into disarray just weeks before the new academic year begins.
The lawsuit contends that the freeze violates the U.S. Constitution and multiple federal laws by blocking funds that Congress had already appropriated.
Weiser called the move “disruptive and reckless,” saying it forces school leaders to rework budgets, staffing and programming on the fly.
“I have heard directly from Colorado school superintendents how disruptive and reckless this arbitrary freeze of federal funding is to them,” Weiser said. “Schools deserve to be treated fairly, and this administration’s lack of regard for the impact of this lawless decision is appalling.”
Funding pulled with one day’s notice
Each year, the U.S. Department of Education distributes grants by July 1 so states and districts can budget for services that support students and educators.
The funds typically cover programming for English learners, migrant students, after-school and summer learning, teacher training, technology access and school climate initiatives.
Until this year, the money had arrived on schedule.
This summer, state agencies received notice just one day before the new fiscal year that the Department would not be obligating any funds for these programs, despite previously approving state plans.
A June 30 email from the Department stated that decisions had not yet been made concerning submissions and awards for the upcoming academic year due to “a review of the programs’ consistency with, among other things, the President’s priorities.”
According to the lawsuit, this eleventh-hour notification left states without time to address what it calls “a momentous fiscal vacuum.”
The complaint describes the freeze as “unlawful, arbitrary and capricious, and unconstitutional,” and states that the Department of Education and OMB have no authority to withhold the congressionally appropriated formula funds for discretionary review.
Local districts scramble to respond
The fallout has been immediate.
Jefferson County Public Schools estimates a $3 million shortfall directly tied to the freeze. Programs supporting multilingual learners, professional development for educators and community engagement are now at risk. Because of federal supplanting rules, the district cannot legally use general fund dollars to fill the gap, even if funding is eventually released.
Adams 12 Five Star Schools also faces budget uncertainty, but Superintendent Chris Gdowski said that, based on careful budget planning, families and staff will not see disruptions this year.
However, he warned that if the federal government does not release the funds soon or cuts them again next year, the district may not be able to sustain the affected programs long term.
According to reporting from KUNC, summer youth enrichment programs offered by the Boys & Girls Clubs of Metro Denver rely on nearly $1 million in federal funding now threatened by the freeze.
Weld RE-8, a smaller district serving Fort Lupton and surrounding communities, is bracing for the possibility of reducing support staff and postponing student services.
In 27-J Schools, Superintendent Will Pierce said the district is using contingency funds for the 2025-2026 school year but will have to make adjustments if the funds remain unavailable long-term.
Constitutional clash over spending authority
Weiser emphasized that only Congress has the authority to decide how federal money is spent. The lawsuit claims the Trump administration overstepped by holding back education funds that Congress had already approved and the President had signed into law.
At stake, Weiser said, is not just the money, but the principle that education budgets shouldn’t be used as political leverage.
According to the complaint, the Constitution gives Congress, not the President, the power to control spending. The lawsuit argues that the administration is ignoring its legal obligations by refusing to release money that has already been allocated.
“Yet that is exactly what Defendants are attempting to do here,” the lawsuit states.
Weiser is co-leading the lawsuit with attorneys general from California, Massachusetts, and Rhode Island. The attorneys general of more than a dozen other states, along with the governors of Pennsylvania and Kentucky, have joined the legal challenge.
Broader impact extends to red states
While the lawsuit was filed by states led by Democratic governors, the impact of the funding freeze is especially severe in Republican-leaning states. Red states are, on average, more dependent on federal education dollars than blue states.
They receive roughly 17% of their public school funding from federal sources, compared to just 11% in states that voted for President Harris. The freeze affects critical programs, including Title I-C for migrant education, Title II-A for professional development, Title III-A for English-learner services and Title IV programs for academic enrichment and after-school activities.
Rural districts in red states are among the hardest hit, with Mississippi, South Dakota, and Arkansas receiving over 22% of their education funding from federal sources.
States like Wyoming and Alabama have already warned of potential teacher layoffs and program cuts. The situation underscores a growing contradiction between political rhetoric about federal overreach and the practical reliance many red states have on federal dollars.
Schools urge swift resolution
Some districts say they’ll face impossible choices before the first bell rings. The 2025–26 school year begins in a matter of weeks, and many schools are preparing contingency plans in case the funding isn’t restored.
“Our schools need stability and support,” Weiser said. “Instead, they’re being forced to undo months of planning because of a decision that is both unlawful and indifferent to the needs of our students.”
The lawsuit also highlights how essential programs from English learner services to teacher training to adult education and reentry programs are now at risk.
“The abrupt freeze is wreaking havoc on key teacher training programs as well as programs that make school more accessible to children with special learning needs,” the complaint states.
A hearing date has not yet been scheduled, but the coalition is asking the court to declare the freeze unlawful and block any attempt to withhold or delay the funding.