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Judge Orders Trump Administration to Process $1.1 Billion in COVID School Aid for 16 States Without Delay

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Updated Jun 4, 2025, 09:12 PM

A federal judge in Manhattan has extended an injunction preventing the Trump administration from canceling unspent funding intended to help elementary and high schools in 16 U.S. states and Washington, D.C., address the COVID-19 pandemic.

U.S. District Judge Edgardo Ramos ordered the Department of Education, led by Secretary Linda McMahon, to process education grants 'without delay' and to provide a status report within one month. The injunction blocks the enforcement of a May 11 letter that would have required states to claim remaining funds by May 24. This follows the initial injunction issued on May 6.

The lawsuit, led by New York Attorney General Letitia James and joined by 15 other attorneys general and Pennsylvania Governor Josh Shapiro, challenges the administration's attempt to rescind unspent aid originally totaling more than $1.1 billion from the American Rescue Plan Act. Maryland had $245.9 million and New York had $134.2 million in unspent funds, the largest among the states involved.

Judge Ramos preserved his ability to enforce the ruling even if the Senate passes a budget bill containing Section 70302, which could otherwise limit his contempt powers. Upon the states’ request, New York was ordered to post a nominal security of $1,000. The case is ongoing in the U.S. District Court for the Southern District of New York.

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