By Paige Duggins-Clay, J.D. • IDRA Federal Education Law and Policy Update • February 28, 2025 •
On January 27, 2025, the White House Office of Management and Budget (OMB) released a memo instructing all federal agencies to “temporarily pause all activities related to obligation or disbursement of all federal financial assistance, and other relevant agency activities.” Set to take effect just 24 hours after publication, the memo cited the administration’s recently-issued executive orders relating to race, gender, immigration and other issues impacting systemic discrimination.
This unprecedented action threatened the stability and services offered by a broad array of programs serving millions of Americans – including our nation’s most vulnerable children and families. Key programs such as Head Start and Title I, which serve low-income students, faced potential delays and funding uncertainties.
A coalition of nonprofits, public health organizations and small businesses successfully obtained a temporary restraining order (TRO) to stop the implementation of the OMB memo. Attorneys general from 22 states and the District of Columbia filed a similar lawsuit in a federal court in Rhode Island.
Hours before a hearing to consider the validity and harm of the administration’s actions, OMB rescinded the memo completely.
Despite this last-ditch effort, D.C.-based district Judge Loren Alikhan issued the temporary restraining order, writing that the arguments and evidence submitted by the plaintiffs “paint a stark picture of nationwide panic in the wake of the funding freeze. Organizations with every conceivable mission — healthcare, scientific research, emergency shelters and more — were shut out of funding portals or denied critical resources beginning on January 28.”
White House Press Secretary Karoline Leavitt subsequently caused further confusion by posting a contradictory statement on social media stating: “This is NOT a rescission of the federal funding freeze. It is simply a rescission of the OMB memo.”
Like his D.C. colleague, District Judge Jack McConnell in Rhode Island found that despite the memo’s rescission, the substantive effect of the funding freeze was still in full force. Referencing Leavitt’s post, the court issued a temporary restraining order barring the administration from withholding federal funds from the states participating in the litigation. The court also prohibited the administration “from reissuing, adopting, implementing or otherwise giving effect to the OMB directive under any other name or title.”
But the administration has proceeded with efforts to defund and dismantle critical grants and public services.
Of note, on February 13, the U.S. Department of Education terminated several contracts totaling $336 million in funding for regional educational laboratories, which “collaborate with state departments of education, school district leaders and classroom educators, and other education stakeholders to address their most pressing problems of education policy and practice.”
The agency also terminated $33 million in grants to the four current equity assistance centers (EACs), which historically have provided technical assistance to facilitate the desegregation of our nation’s schools. In furtherance of this critical work, authorized under Title IV of the Civil Rights Act of 1964, the centers provide research-based support and resources to schools to meet their obligations to provide equal educational opportunity for all students.
Courts, policymakers, educators, advocates and communities must remain vigilant and take decisive action to protect vital public services from funding disruptions. We urge Congress to enact safeguards that ensure federal funding reaches the students and families who rely on it.
Paige Duggins-Clay, J.D., is IDRA’s chief legal analyst. Comments and questions may be directed to her via email at paige.duggins-clay@idra.org.
[© 2025, IDRA. Permission to reproduce this article is granted provided the article is reprinted in its entirety and proper credit is given to IDRA and the author.]
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