Wisconsin at risk of losing an estimated $72 million in funding
MADISON, Wis. – Attorney General Josh Kaul today joined a coalition in suing the Trump Administration over its unconstitutional, unlawful, and arbitrary decision to freeze funding for six longstanding U.S. Department of Education programs just weeks before the school year is set to start in many places. Without this funding, many educational programs will shut down – already, ongoing summer learning programs have been left unfunded.
“Depriving our schools of critical resources is bad for our schools, bad for students, and bad for Wisconsin,” said AG Kaul. “This unlawful funding freeze should be stopped.”
“Wisconsin schools depend on these dollars to serve kids. Make no mistake, stopping this money has had and will continue to harm our families and communities,” said Dr. Jill Underly, State Superintendent of Public Instruction.
In Wisconsin, an estimated $72 million in federal education funding is frozen.
Wisconsin school districts had already finalized their budgets when the freeze was announced, developing staffing plans and signing contracts to provide vital educational services supported by these grants. Now, school districts in Wisconsin and across the country are finding themselves without sufficient funding for these commitments just weeks before the start of the 2025-26 school year. With contracts and staffing already set, most schools have little flexibility to absorb the shortfall. The Wisconsin Department of Public Instruction may have to lay off more than 20 staff members who help school districts meet federal requirements and deliver services statewide.
Wisconsin’s technical colleges are also impacted by this federal funding freeze. More than $7.5 million in adult education grants is on hold, threatening programs that serve nearly 34,000 adult learners statewide. Without this federal funding, adults working toward a high school diploma or improving their English skills could lose access to the classes and support they need to succeed. The Wisconsin Technical College System Board has already begun canceling professional development activities, and staff layoffs may soon follow, further disrupting services. This sudden funding loss leaves Wisconsin’s technical colleges facing budget shortfalls that threaten the stability of these essential programs.
For decades, Wisconsin and other states have used funding under these programs to carry out a broad range of programs and services, including educational programs for migratory children and English learners; programs that promote effective classroom instruction, improve school conditions and the use of technology in the classroom; community learning centers that offer students a broad range of opportunities for academic and extracurricular enrichment; and adult education and workforce development efforts.
Pursuant to federal statutory and regulatory requirements, each year the Department of Education makes around 25% of the funds for these programs available to states on or about July 1 in order to permit state and local educational agencies to plan their budgets for the academic year ahead. The states have complied with the funding conditions set forth under the law and have State plans that the Department of Education has already approved. The states have received these funds, without incident, for decades, including as recently as last year. However, this year, on June 30, state agencies across the country received a notification announcing that the Department of Education would not be “obligating funds for” six formula funding programs on July 1.
The coalition argues that the funding freeze violates the federal funding statutes and regulations authorizing these critical programs and appropriating funds for them, violates federal statutes governing the federal budgeting process, including the Antideficiency Act and Impoundment Control Act, and violates the constitutional separation of powers doctrine and the Presentment Clause. They ask the court for declaratory and injunctive relief.
Joining AG Kaul in this lawsuit are the attorneys general of California, Colorado, Massachusetts, Rhode Island, Arizona, Connecticut, Delaware, the District of Columbia, Hawai’i, Illinois, Maine, Maryland, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Vermont, and Washington and the Governors of Kentucky and Pennsylvania.
A copy of the complaint is available here.
A copy of the motion for preliminary injunction is available here.
View this press release on the DOJ website here.
