Trump Canceled Millions in California School Grants. The State Is Suing to Reclaim the Money

The Trump administration overstepped its authority when it cut short pandemic relief grants for K–12 schools, a move that cost them hundreds of millions of dollars, according to a lawsuit filed today by California and a dozen other states.

The suit, filed against the U.S. Department of Education in the Southern District of New York, is California Attorney General Rob Bonta’s 13th lawsuit against the Trump administration.

“When the president breaks the law, we sue. It’s that simple,” Bonta said. “And he’s broken the law again, unfortunately, this time harming children in the process.”

“Our students have congressionally appropriated funding coming their way post-pandemic to help with all the challenges,” Bonta added. “The funds had a rollout period of another year but (U.S. Secretary of Education Secretary Linda McMahon) cut them overnight, and she doesn’t have the authority to do that.”

The lawsuit stems from a March 28 letter McMahon sent to state education chiefs, saying that the government would no longer honor extensions of COVID relief grants. States can ask for new extensions for individual projects, but in general the government would no longer send out COVID-relief grant money.

“Extending deadlines for COVID-related grants, which are in fact taxpayer funds, years after the COVID pandemic ended is not consistent with the Department’s priorities and thus not a worthwhile exercise of its discretion,” McMahon wrote.

In California, schools would lose about $200 million, Bonta said.

Tutoring and mental health

During the pandemic, the federal government gave out almost $200 billion to K–12 schools to help students recover academically and emotionally from school closures related to COVID-19. Schools used the money for tablets, after-school programs, tutoring, summer school, mental health counseling and other initiatives. California schools received more than $13 billion through several rounds of grants.

Most of those grants expired last year, but the Biden administration extended the spending deadline until March 2026 for districts that needed it.

Bonta’s lawsuit argues that McMahon’s order is illegal because the money was approved by Congress and the Trump administration doesn’t have a right to slash it. The suit is asking that the Department of Education reinstate the original deadline of March 2026 and give schools the money they were originally allotted.

The pandemic had a profound effect on schools, as thousands closed their campuses for at least a year and switched to remote learning. Low-income students in particular fell behind academically, as they often lacked reliable Wi-Fi service or a quiet place to study. Many students also experienced depression and anxiety if a parent lost a job, a relative died, or they simply couldn’t see their friends.

Although test scores, discipline rates and attendance have all improved since 2020, most schools still lag behind their pre-pandemic performance.