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National · Policy & Funding

K-12 and education groups sue over withheld $1.9B in federal research funds, IES cuts

Two lawsuits challenge the withholding of nearly $1.9B in congressionally appropriated education research funds and the dismantling of the Institute of Education Sciences, raising constitutional questions about executive spending power.

A coalition of education organizations filed two federal lawsuits in 2025 challenging the Trump administration's actions that have withheld nearly $1.9 billion in congressionally appropriated education research funds and significantly curtailed operations at the Institute of Education Sciences (IES). The suits, filed in different federal districts, allege violations of the Administrative Procedure Act, the Antideficiency Act, and the constitutional separation of powers.

Two legal challenges

The first suit, filed in U.S. District Court for the District of Massachusetts, names the Education Department and the Office of Management and Budget as defendants. Plaintiffs include the National Center for Learning Disabilities, the Knowledge Alliance, and the Massachusetts Teachers Association. The complaint alleges the agencies are unlawfully withholding nearly $1.9 billion appropriated for IES programs for fiscal years 2025 and 2026, and asks the court to order the funds released. The affected programs include the National Center for Education Statistics, National Center for Education Research, and National Center for Special Education Research, according to K12 Dive. The Education Department stated that it intends to use appropriated funds in accordance with statutory requirements while supporting research activities. OMB did not respond to requests for comment.

$1.9 billionCongressionally appropriated education research funds for fiscal years 2025 and 2026 that a lawsuit alleges are being unlawfully withheld by the Education Department and OMB. [1]

The second suit, filed in U.S. District Court for the District of Columbia by the National Academy of Education and the National Council on Measurement in Education, challenges the cancellation of over $900 million in IES contracts on February 10, 2025. Those contracts included vendor agreements required to maintain and update IES data systems. The complaint further alleges that a Reduction in Force on March 11, 2025 eliminated approximately 90 percent of IES staff, shrinking the agency to about twenty employees. The National Center for Education Statistics fell from roughly 100 employees to three, according to the court filing.

90 percentProportion of IES staff eliminated in a March 2025 Reduction in Force, according to a complaint filed in D.C. District Court. [2]

The D.C. complaint identifies specific datasets affected, including the National Assessment of Educational Progress, EDFacts, the National Postsecondary Student Aid Study, and international assessments such as TIMSS. It also alleges that researchers' access to existing federal education data has been terminated, contrary to congressional mandates under the Education Sciences Reform Act of 2002.

Comparative precedent

The current legal challenges echo earlier confrontations over the executive branch's authority to reshape federal education research. In the early 1980s, the Reagan administration proposed eliminating the Education Department entirely and sought deep cuts to education research and statistics. According to the National Education Association, Congress pushed back, the department survived, and some research functions were scaled back but not eliminated. The department's research arm was later reorganized into IES under the Education Sciences Reform Act in 2002.

Protect Democracy, a legal advocacy organization, has documented what it describes as a pattern of the Trump administration withholding congressionally appropriated funds across multiple agencies beyond education. The organization is litigating to restore funding for congressionally mandated education programs, arguing that such actions violate Congress's appropriations power and the Impoundment Control Act.

Evidence and legal status

The Education Sciences Reform Act of 2002 statutorily mandates that the Department of Education collect, maintain, analyze, and disseminate high-quality data through IES and its four research centers. The D.C. complaint argues that executive actions restricting these activities violate obligations Congress has not curtailed, as stated in the court filing. Congress continues to appropriate hundreds of millions of dollars for these functions.

A federal judge denied a preliminary injunction sought by the plaintiffs in the D.C. case. The judge found that the Administrative Procedure Act was not designed to shield agencies from political shifts and that APA challenges must target specific agency actions rather than broadly reversing multifaceted organizational changes. The ruling limits the legal pathway for those seeking to reverse the IES restructuring through a preliminary injunction, according to the memorandum opinion.

Analysis

By the School Decision Newsroom, written after the reporting above was filed.

A circuit court ruling has already closed the legal door these lawsuits are trying to open

In August 2025, the D.C. Circuit ruled in Global Health Council v. Trump that private parties cannot challenge executive impoundment of appropriated funds under the APA. The Impoundment Control Act, the court held, provides the exclusive enforcement mechanism and reserves it to the Comptroller General, not to private litigants. The Supreme Court subsequently let the administration continue withholding billions in foreign aid. This ruling is binding precedent in the D.C. court where NAEd sued. The Massachusetts case sits in the First Circuit and is not controlled by it, but the government will press the same argument there. Judge McFadden's June denial of the preliminary injunction in the D.C. education case turned on related APA limitations.

The Nation's Report Card is already being scaled back, regardless of what the courts decide

The administration canceled the NAEP long-term trend assessment for 17-year-olds in February 2025, ending a data series that ran since the 1970s. In April, the National Assessment Governing Board announced NAEP will drop 12th-grade science through 2032, cancel the 2032 writing test entirely, and eliminate state-by-state reporting for 12th graders in reading and math. NCES, which administers NAEP, went from roughly 100 employees to three. The 2026 reading and math tests for 4th and 8th graders will proceed. But researchers warn that three employees cannot maintain the methodological rigor the assessment has carried for decades. Parents who use NAEP to compare their state or district to national trends will see less data, fewer subjects, and longer gaps.

The D.C. case survived dismissal and enters discovery; some FY2025 funds may have already lapsed

On February 25, 2026, Judge McFadden denied the government's motion to dismiss the D.C. case, ruling that NAEd and NCME plausibly alleged concrete harms from the IES cuts. Discovery is now underway, requiring the Education Department to produce internal documents about the funding and staffing decisions. The Massachusetts complaint, filed June 30, 2025, warns that $793 million in fiscal year 2025 IES funds could expire on September 30 if not obligated, along with $50 million for Comprehensive Centers. That September deadline has now passed. If those funds were not obligated before the fiscal year ended, no court ruling can revive them, even if the plaintiffs ultimately prevail.

Sources

  1. Higher Ed Dive. Education groups sue for access to nearly $2B in research funds View
  2. CourtListener (U.S. District Court for the District of Columbia). NAEd v. Department of Education - Complaint View
  3. The Hechinger Report. Memorandum Opinion Denying Preliminary Injunction View
  4. K12 Dive. Education groups sue for access to nearly $2B in research funds View
  5. National Education Association. Are the President's Actions About Public Schools Legal? View
  6. Protect Democracy. Restoring funding for Congressionally mandated education programs View
  7. U.S. Court of Appeals for the D.C. Circuit. Global Health Council v. Trump - Opinion View
  8. SCOTUSblog. Supreme Court allows Trump administration to withhold billions in foreign aid funding View
  9. Education Week. Fewer Subjects, Students, Data Points: Feds to Scale Back NAEP View
  10. Bloomberg Government. Trump Officials Sued for Blocking Education Research Money View
  11. National Academy of Education. Research in Action - Lawsuit Challenging the Decimation of the Work of IES View
K-12 and education groups sue over withheld $1.9B in federal research funds, IES cuts | School Decision