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A federal judge in Manhattan has extended a key injunction preventing the Trump administration from halting over $1.1 billion in unused COVID-19 relief funds earmarked for elementary and high schools across 16 states and Washington, D.C. The aid was originally granted under the American Rescue Plan Act to support pandemic recovery efforts such as tutoring, building upgrades, and assistance for homeless students.
U.S. District Judge Edgardo Ramos' ruling blocks Education Secretary Linda McMahon from withdrawing the remaining funds while a multi-state lawsuit, led by New York Attorney General Letitia James and joined by 15 other Democratic attorneys general and Pennsylvania Governor Josh Shapiro, proceeds.
The injunction extension mandates the U.S. Department of Education to process current and future funding requests promptly and submit a status report within 30 days. It also halts enforcement of a May 11 letter from the department requiring states to claim leftover funds by May 24.
The Biden administration had previously extended the spending deadline for school relief funds through March 2026. However, McMahon, a member of former President Donald Trump’s cabinet, argued in a March 28 letter that states had sufficient time and suggested reallocating the funds elsewhere.
The Education Department contends it would face irreparable harm if forced to release money it might not recover should it win the legal battle.
As of the lawsuit’s filing, Maryland held the largest unspent balance at $245.9 million, with New York following at $134.2 million.
The case, New York et al v. U.S. Department of Education et al, is being heard in the U.S. District Court, Southern District of New York (No. 25-02990). The White House has not yet commented.
