Colorado AG celebrates agreement with Trump administration to release remaining frozen education funds

DENVER, Colo. (KRDO) – Colorado Attorney General Phil Weiser is celebrating an agreement with the Trump administration after he and 23 other state leaders successfully pressured the federal government to release hundreds of millions in previously withheld education funds to schools across the country.

The U.S. Department of Education (DOE) agreed to release any remaining funds by Oct. 3 to resolve a lawsuit filed in July 2025, led by AG Weiser alongside the attorneys general of California, Massachusetts, and Rhode Island. 

The suit accused the Trump administration's DOE of illegally withholding $6.8 billion in critical federal education funding for K-12 schools across the country, including an estimated $80 million here in Colorado.

The Colorado AG's office previously warned that the massive funding freeze would severely impact the state's school conditions and technology, afterschool programs, teacher training, migrant education and English-language learning, among other key initiatives.

“These funds help close opportunity gaps, support educators, and create safe, engaging learning environments,” Colorado Education Commissioner Susana Córdova said in a release announcing the suit. “Without this funding, districts across Colorado will be forced to cut critical services just weeks before the school year begins.”

In the lawsuit, the leaders accused the DOE of violating federal law and harming school districts preparing for the 2025–26 academic year when it delayed federal funding that was expected on July 1.

According to court documents, the DOE admitted to no wrongdoing, but has agreed to make the remaining funds available by Oct. 3 at the latest.

Following the legal action, the federal government released the first portion of funds in late July. In a court agreement reached on Aug. 25, the DOE admitted to no wrongdoing, but further agreed to make the remaining frozen funds available by Oct. 3 at the latest.

In exchange, the coalition of states agreed to dismiss the lawsuit without prejudice.

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