Acting Attorney General Jennifer Davenport announced that a coalition of 19 attorneys general secured an agreement preventing the federal government from withholding more than $1 billion in federal funding to state and local education agencies in the state.
The agreement resolves a lawsuit brought by New Jersey and a coalition of attorneys general alleging unlawful attempts by the Trump administration to terminate federal education funding based on its interpretation of Title VI of the Civil Rights Act of 1964.
“In New Jersey, we will continue to stand against the Trump Administration’s relentless – and illegal – attacks on our most vulnerable residents. The U.S. Department of Education’s nonsensical decision to cut off funds for our schools is an affront to hardworking families across our state, especially those in need of specialized education services,” Gov. Mikie Sherrill said. “I applaud acting Attorney General Davenport for fighting to preserve critical federal funding that enables all New Jersey students to receive the best-in-the-nation public education that they deserve.”
On April 3, 2025, the U.S. Department of Education informed state and local agencies that they must accept the Trump administration’s new and legally incoherent interpretation of Title VI of the Civil Rights Act of 1964 with respect to diversity, equity, and inclusion efforts — or else risk the immediate and catastrophic loss of federal education funds.
“Once again, we have turned back the Trump Administration’s unlawful attempts to threaten critical federal education funding to New Jersey," Davenport said. "The agreement we’re announcing today ensures that the Trump Administration cannot cut off funding for our students — especially for students with special needs and other vulnerable youths — based on its misguided attack on programs that promote equal access to education in K-12 classrooms. Kids and teachers deserve these resources, and New Jersey taxpayers — who pay far more to Washington in taxes than they get back — deserve better than the constant attacks on their wallets and values by President Trump.”
New Jersey, like many other states, acknowledged that it complies with federal law, but declined to certify its compliance with the U.S. Department of Education’s new requirements, arguing there was no lawful or practical way to comply with the department’s vague, contradictory and unsupported interpretation of Title VI.
“By securing this settlement, the multistate coalition is protecting more than $1 billion that directly supports students with disabilities, students from low-income families, multilingual learners, and other vulnerable children who rely on these programs every day,” acting Commissioner of Education Lily Laux said. “This outcome preserves our school districts’ ability to focus on what matters most: creating safe, inclusive, and supportive learning environments where all students can thrive and achieve academic excellence.”
New Jersey and a multistate coalition filed a lawsuit April 25, asserting that the administration’s attempt to terminate federal education funding based on its misinterpretation of Title VI violates the Spending Clause, the Appropriations Clause, the separation of powers, and the Administrative Procedure Act. Another lawsuit filed in the U.S. District Court for the District of Maryland, American Federation of Teachers, et al. v. United States Department of Education, resulted in a decision vacating the April 3 certification request. That decision recently became final when the parties filed an agreement dismissing the Administration’s appeal.
The agreement announced Tuesday resolves this lawsuit and secures the critical commitment from the Administration to apply the relief obtained in the American Federation of Teachers lawsuit to schools in New Jersey. The resolution prevents the Administration from withholding any funding based on these unlawful conditions.
The agreement protects more than $1 billion in congressionally mandated financial support that the administration provides to New Jersey’s education system each year. This funding includes financial support to support students with special needs; to ensure that students from low-income families have the same access to high-quality education as their peers; to recruit and train highly skilled and dedicated teachers; to fund programming for non-native speakers to learn English; and to provide support to vulnerable children in foster care and without housing.