New Jersey Attorney General Matthew J. Platkin has reached an agreement with the Trump Administration to ensure the release of all remaining federal education funds that were previously withheld from the state. The agreement comes after a lawsuit was filed last month by Platkin and a coalition of attorneys general challenging what they described as an unlawful freeze on funding for six long-established education programs managed by the U.S. Department of Education.
Over $158 million in federal funding for New Jersey had been frozen, impacting programs such as after-school and summer learning initiatives, teacher preparation efforts, and support for students learning English. Shortly after legal action began, the administration released part of the withheld funds. Under the new agreement, the rest will be provided to New Jersey by October 3, 2025.
The coalition and the Trump Administration have jointly moved to dismiss the case following this settlement, which secures full relief sought in their lawsuit.
“From the beginning, we made clear that the Trump Administration’s freeze of funding for after-school programs, children with special needs, and other critical programs was blatantly illegal. In resolving this lawsuit today, we are proud to fully restore this funding and deliver a quick and favorable resolution for our state ahead of the start of the 2025-2026 school year,” said Attorney General Platkin. “We will always stand up for students, families, and educators across New Jersey, and we will never let this Administration get away with clawing critical federal funding away from our best-in-the-nation education system.”
The original freeze took effect on June 30 when federal officials halted funds for several programs just two months before schools were set to reopen in many parts of New Jersey. These programs have supported services including educational resources for students with special needs or those learning English; afterschool and summer school activities; teacher training; community learning centers; as well as adult education and workforce development.
On July 14, Platkin joined 23 other attorneys general and two states in filing suit against the freeze. The complaint argued that withholding these funds violated both federal statutes governing program appropriations and regulations under which they operate. It also cited breaches of administrative law and constitutional principles.
By August 1, New Jersey received notification from federal officials that frozen funds would begin to be released during the current fiscal year. Grant Award Notifications soon followed confirming that all required monies originally due on July 1 had been distributed.
A copy of the motion to dismiss with stipulations is available .
