NJ Secures Release of $158 Million in Federal Education Funds for Schools

MORRISTOWN, NJ — New Jersey Attorney General Matthew J. Platkin announced this week that his office has secured a settlement with the Trump Administration that will require the release of over $158 million in federal education funds previously withheld from New Jersey schools. The agreement resolves a lawsuit brought by Platkin and a coalition of attorneys general challenging what they described as an unlawful and unconstitutional freeze on longstanding federal education programs.

The settlement, filed jointly by the coalition and the Trump Administration, mandates that the U.S. Department of Education release the remaining balance of withheld funds by no later than October 3, 2025. The funding supports a wide range of initiatives, including afterschool and summer learning programs, teacher preparation efforts, and services for English language learners.

“From the beginning, we made clear that the Trump Administration’s freeze of funding for after-school programs, children with special needs, and other critical programs was blatantly illegal. In resolving this lawsuit today, we are proud to fully restore this funding and deliver a quick and favorable resolution for our state ahead of the start of the 2025-2026 school year” said Attorney General Platkin. “We will always stand up for students, families, and educators across New Jersey, and we will never let this Administration get away with clawing critical federal funding away from our best-in-the-nation education system.”

The dispute stems from a decision on June 30, when the Trump Administration abruptly froze funding for six federal education programs just weeks before the start of the academic year. These programs, administered for decades by the U.S. Department of Education, provide critical support for students with special needs, adult education, community learning centers, and teacher training.

On July 14, Platkin joined 23 attorneys general and two additional states in filing suit, asserting that the freeze violated multiple federal statutes and regulations, the Administrative Procedure Act, and constitutional principles, including the separation of powers. The lawsuit sought both immediate and full release of the appropriated funds.

In early August, New Jersey received formal notice that the U.S. Department of Education would begin disbursing the initially frozen funds. Grant Award Notifications later confirmed that the full amount originally scheduled for release on July 1 had been allocated to the state.

The lawsuit was dismissed following the new agreement, which ensures the final balance will be made available on time. The resolution, coming on the eve of the new school year, provides financial certainty to school districts and education agencies across New Jersey and other affected states.

The federal programs at the center of the case have historically underpinned efforts to strengthen public education, particularly for vulnerable and underserved student populations. New Jersey's share of the funding supports a spectrum of initiatives, including academic enrichment, instructional quality, and workforce development.

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