KY sues Trump Administration over nearly $100 million in frozen federal funding
AI-generated summary reviewed by our newsroom.
- Kentucky joined 23 states suing over frozen education funds.
- Funding freeze affects K-12, adult education, and programs in 171 school districts.
- Federal officials paused $8.7 billion nationwide to review alignment with policy.
Kentucky has joined 23 other states and the District of Columbia in a lawsuit challenging federal education officials decision to freeze nearly $100 million in federal education dollars for Kentucky schools and adult education.
“This is not about Democrat or Republican – these funds were appropriated by Congress for the education of Kentucky’s children, and it’s my job to ensure we get them,” said Gov. Andy Beshear in a news release announcing Kentucky’s decision to join the lawsuit.
“In Kentucky, $96 million in federal education funds are at risk. Our kids and our future depend on a strong education, and these funds are essential to making sure our kids succeed.”
The US Department of Education notified Kentucky education officials June 30, the day before federal education money is typically released to the states, that approximately $87 million earmarked for K-12 education would be frozen. It comes as President Donald Trump’s administration analyzes the funding to determine if it followed the president’s priorities.
In addition, another $9 million that has been set aside for adult education program also has been frozen, Beshear said.
The money has already been allocated by Congress. The Kentucky Department of Education and local school officials were banking on those federal funds to balance upcoming school budgets.
Now, school districts are scrambling to figure out how to plug holes in school budgets those federal dollars typically covered.
In a July 2 call with school officials, Kentucky education officials said the following money is held up in Washington D.C.:
- $7.9 million for migrant education; 30 school districts are affected.
- $33.6 million for supporting effective instruction; all 171 school districts are affected.
- $5.7 million for English language acquisition; 50 school districts are affected
- $20.3 million for student support and academic enrichment; all 171 school districts are affected.
- $19.4 million for 21st Century Learning Centers. (This affects funding for the 2026-2027 school year.); 47 school districts are affected.
In total, the U.S. Department of Education has frozen $8.7 billion in federal education funding to states across the country.
States that have joined the lawsuit include Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Washington and Wisconsin, as well as the District of Columbia.
The federal lawsuit was filed in Rhode Island.
This is not the first time Beshear, a Democrat, has sued the Trump administration over the loss of federal funds. He also joined a federal lawsuit in February over other funding, including freezes on conservation funding.
Kentucky Attorney General Russell Coleman, a Republican, has not signed on to either lawsuit.
Kentucky Education Commissioner Robbie Fletcher voiced support for the lawsuit on Monday night.
“The federal government’s delay in releasing the Congressionally appropriated $87 million to Kentucky’s schools and districts is having – and will continue to have – many negative impacts upon the Commonwealth’s students,” Fletcher said. “This funding for Kentucky’s districts was included in the Continuing Appropriations and Extensions Act passed by Congress on March 15, 2025, and was signed into law by the President.”
Fletcher said the first instructional day for many districts is just three weeks away. Instead of making final preparations to welcome students back into the classroom, many Kentucky schools are developing plans to reduce staff, cancel programs and eliminate student supports if the federal funds are not immediately released to Kentucky, he said.
“The delay or withholding of these Congressionally appropriated funds will impact all our districts, with an especially large impact on Kentucky’s most vulnerable students,” Fletcher said. “This federal funding provides services for children who move frequently and their families, professional development for our teachers, services for English learners to help them meet our challenging state academic standards, academic enrichment programs, tutoring services and remedial education activities.”
Fletcher said it’s imperative that the funds appropriated by Congress be immediately awarded to Kentucky.
Impact on Fayette
Fayette County Public Schools district spokesperson Miranda Scully on Monday night provided numbers that showed how much was withheld from Fayette County as a result of the funding freeze. Deputy Superintendent Houston Barber provided additional information at Monday’s school board planning meeting.
▪ Title II includes professional learning : $1,650,735
▪ Title III includes English language support: $819,787. The delays in funding threaten mid-year expansion efforts.
▪ Title IV Science, technology, engineering, math and arts, alternatives to suspension, response to threats and suicide assessments : $1,062,1131
How is the district going to make up for the loss of funds?
The district is allocating unused FY 24/FY 25 funds of more than $2 million and prioritizing high impact programs, Barber said.
“All our strategic priorities are affected when funds are withheld,” Barber said at Monday’s school board planning meeting. “We have to figure out a way to bridge programs until funding resumes.”
“Fayette County Schools is proactively addressing our fiscal planning to ensure we continue to meet the needs of our students,” said Scully. “During their June 9 planning session, our school board members established a Budget Solutions Work Group. This group was formed to collectively, transparently, and thoroughly examine the district’s short-term budget plans and long-range fiscal outlook.”
This story was originally published July 14, 2025 at 3:35 PM.
