Letitia James Hits Donald Trump With New Lawsuit

New York Attorney General Letitia James speaks

New York Attorney General Letitia James is leading a coalition of Democratic state attorneys general in suing the Trump administration to stop it from cutting off access to more than $1 billion in funding to address the long-term effects of the COVID-19 pandemic on K-12 students.

Newsweek has contacted the White House and the Department of Education for comment via emails sent outside regular business hours.

New York Attorney General Letitia James speaks during a press conference on the Department of Government Efficiency at Manhattan Federal Courthouse on February 14, 2025 in New York City.

Michael M. Santiago/Getty Images

Why It Matters

The Department of Education notified states on March 28 that it had rescinded access to funds under programs enacted as part of the American Rescue Plan Act under former Democratic President Joe Biden. The department had previously said that states could access the funds through March 2026.

President Donald Trump signed an executive order last month calling for the dismantling of the Department of Education. The department, along with other federal agencies, has moved to aggressively cut federal spending by canceling contracts and grants, sparking legal challenges.

What to Know

The lawsuit, filed in federal court in Manhattan on Thursday, alleges that the Trump administration’s sudden reversal violates the Administrative Procedures Act. “The end of the COVID-19 pandemic is not a lawful basis to rescind the prior extension approvals,” it states.

The lawsuit says the reversal means states that planned on the funding will face budget shortfalls.

It says that states had earmarked funds to pay for repairs and improvements to school ventilation programs and tutoring for students. Some states also planned to use funds to pay for education and care programs for homeless students, according to the lawsuit.

“If the recession action is not vacated and the approved extensions are not reinstated, key programs and services that address ongoing and emerging needs of Plaintiff’s students and local school districts to combat the long-term effects of the pandemic will have to be dissolved or disbanded,” the lawsuit said.

“State employees and contractors have been, and will continue to be, dismissed from their roles, along with the employees of businesses providing academic and other services in schools. The result of ED’s rescission is a massive, unexpected funding gap that is causing serious harm to the public, cutting off vital education services, all to the detriment of the students whom Congress intended to benefit.”

The other plaintiffs joining James in the lawsuit are the attorneys general of Arizona, California, the District of Columbia, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New Mexico, Nevada, Oregon and Pennsylvania Governor Josh Shapiro.

What People Are Saying

Letitia James said in a statement: “The Trump administration’s latest attack on our schools will hurt our most vulnerable students and make it harder for them to thrive.

“Cutting school systems’ access to vital resources that our students and teachers rely on is outrageous and illegal. As a proud graduate of New York public schools, I will continue to use every tool at my disposal to fight for our schools and make sure every child has access to a quality education.”

She wrote on X: “My office is leading a coalition to sue Trump and stop him from trying to cut access to hundreds of millions of dollars in funding that supports low-income and unhoused students and the long-term effects the pandemic had on our kids.”

Pennsylvania Governor Josh Shapiro said in a statement: “Congress and the federal government made a commitment to our students, and school districts across Pennsylvania started construction to make schools safer, delivered supplies to students, and invested to create more opportunity for our kids based on that commitment.

“Now the Trump Administration is trying to renege on its commitments to our kids and leave Pennsylvania taxpayers holding the bag. Every Pennsylvania student deserves the freedom to chart their own course and the opportunity to succeed. I’m taking action to preserve that freedom and ensure no Pennsylvania student is harmed by the federal government’s decision to go back on its word.”

Education Secretary Linda McMahon said in a letter to the states on March 28: “After careful review, the Department is modifying the liquidation period to end on March 28, 2025. The Department has concluded that the further extension of the liquidation period for the aforementioned grants, already well past the period of performance, was not justified. You and your subrecipients have had ample time to liquidate obligations.”

McMahon added: “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.”

What’s Next

James and the plaintiffs are seeking a court order to block the Trump administration from cutting off access to the funds.

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