Trump Administration Releases $171 Million in Federal Education Funds to Michigan Schools

The Trump administration has agreed to release approximately $171 million in previously frozen federal education funds to Michigan schools, following a multistate lawsuit led by Attorney General Dana Nessel.

 

In July 2025, the administration had halted the distribution of $6.8 billion in education grants nationwide, affecting six key programs in Michigan. These programs support services such as after-school learning centers, teacher professional development, adult literacy, English language acquisition, and assistance for children of migrant workers.

 

Attorney General Nessel, along with 22 other states, filed a lawsuit challenging the administration's decision, arguing it violated federal statutes and the constitutional separation of powers. Nessel emphasized the critical nature of these funds, stating that without them, many educational programs would be forced to close, leaving students without essential services.

 

State Superintendent Dr. Michael F. Rice expressed relief over the release of funds but questioned the necessity of the initial freeze. He highlighted the disruption caused to school districts that had already planned budgets and staffing based on the expected federal support.

 

The unfreezing of these funds comes as Michigan schools prepare for the upcoming academic year, providing much-needed stability and resources for students and educators across the state.