Michigan Attorney General Dana Nessel has secured an agreement from the Trump Administration





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*FOR IMMEDIATE RELEASE:*
August 26, 2025




*Media Contact:*
Danny Wimmer <[email protected]>






Attorney General Nessel Secures Full Relief for Michigan Schools in Lawsuit Challenging Withholding of Education Funding

*LANSING* – Michigan Attorney General Dana Nessel has secured an agreement from the Trump Administration to release the full balance of remaining education funding at issue in a multistate lawsuit by no later than October 3, 2025. Last month, Attorney General Nessel joined a coalition in suing the Trump Administration [ [link removed] ] over its unconstitutional, unlawful, and arbitrary decision to freeze funding for six longstanding programs administered by the U.S. Department of Education just weeks before the school year was set to start. In Michigan, approximately $171 million in federal education funding was frozen, jeopardizing key programs for after school and summer learning, teacher preparation, and to support students learning English. Days later, the Trump Administration released the first portion of funding that had previously been withheld. The multistate coalition and the Trump Administration have now jointly filed to dismiss the case under the terms of an agreement that ensures the remaining funding is released on time, providing Michigan and the multistate coalition with the full relief they had sought in the lawsuit. 

"I am relieved that these unlawfully held funds will finally be released to schools as students return to the classroom,” Nessel said. “This agreement is yet another example of how these lawsuits are making a real difference to Michigan families. I remain committed to working alongside my fellow Democratic attorneys general across the country to stand up against illegal federal actions and to fight on behalf of our residents.” 

On June 30, the Trump Administration abruptly and unlawfully froze funding for six longstanding programs administered by the U.S. Department of Education just weeks before the school year was set to start in many parts of Michigan. For decades, Michigan and other states have used funding under these programs to carry out a broad range of programs and services, including educational programs for migrant children and English learners; programs that promote effective classroom instruction, improve school conditions, and support 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.  

On July 14, Attorney General Nessel joined a coalition of 23 attorneys general and two governors in filing a lawsuit and motion for a preliminary injunction, arguing that the freeze violates federal funding statutes and regulations authorizing these critical programs and appropriating funds for them, federal statutes governing the federal budgeting process, and the constitutional separation of powers doctrine and the Presentment Clause.   

On July 18, Michigan received notice from the U.S. Department of Education that beginning the week of July 28, the agency would begin releasing previously impounded federal funds for the current federal and education fiscal year. [ [link removed] ] Michigan subsequently received Grant Award Notifications confirming that the entirety of the funds that the U.S. Department of Education was required to make available to the states on July 1 had been released.  

A copy of the motion to dismiss with stipulations is available here (PDF) [ [link removed] ]. 

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