Four education organizations sued the Trump administration (PDF File) on June 30, alleging the Office of Management and Budget and the Department of Education are unlawfully blocking nearly $1.9 billion in congressionally approved education research funding — much of which expires September 30, 2026.
The Institute of Education Sciences (IES) is the federal government's main source of education research and statistics, funding everything from studies on reading instruction to state data systems that track student outcomes. If the money isn't legally committed before it expires, it's gone and the research it would have funded goes with it.
The Details
The complaint targets four pots of money:
- $793 million in IES appropriations that expire September 30, 2026
- $789 million in IES appropriations that expire September 30, 2027
- $50 million for the Comprehensive Centers program, expiring September 30, 2026
- $235 million for the Education Innovation and Research (EIR) program, expiring December 31, 2026
The plaintiffs (the National Center for Learning Disabilities, Knowledge Alliance, BNP Education Partners, and the 117,000-member Massachusetts Teachers Association) allege OMB "misused the 'apportionment' process to unlawfully wrest control of education research spending from Congress." Under the Anti-Deficiency Act, OMB must release, or "apportion," appropriated funds before agencies can spend them.
The suit says OMB withheld hundreds of millions entirely, delayed hundreds of millions more, and attached footnotes conditioning the funds on compliance with executive orders — including Executive Order 14151 (PDF File), President Trump's order ending federal DEI programs.
The complaint also alleges OMB kept $289.5 million parked on an "unallocated" line as of February 2026, and that the Department of Education has been a "more-than-willing participant" by agreeing to spend plans that block the funding Congress directed.
Legal Questions
The major question is whether the Executive Branch can effectively cancel spending Congress already approved by slow-walking the administrative steps needed to release it. The nine-count lawsuit argues this violates the Administrative Procedure Act, the Anti-Deficiency Act, and the Constitution's separation of powers.
And the clock is ticking. Roughly $843 million expires on September 30, 2026, and another $235 million on December 31, 2026. The plaintiffs are asking the court to force OMB to apportion the funds and the Department to obligate them before those deadlines.
Expect a motion for preliminary relief given the timeline.
How This Connects
This is the second major legal fight over IES. As we reported earlier, a previous lawsuit challenged the administration's dismantling of IES itself, after the administration cut roughly 90% of the agency's staff and canceled congressionally mandated research contracts. That case attacked the capacity to do the research; this one attacks the money to fund it. Together, they will help define how much control any administration has over the future of the Department of Education — and the data students, parents, and policymakers rely on.
Don't Miss These Other Stories:
Editor: Colin Graves
Robert Farrington is the founder of The College Investor and is widely recognized as one of the nation’s leading voices on student loan debt and saving for college. He holds an MBA from UC San Diego Rady School of Management and has spent over 15 years researching, writing, and advising on student loans, 529 plans, financial aid programs, and saving and investing for young professionals.
Robert has been featured in the The New York Times, The Wall Street Journal, The Washington Post, NBC News, and Forbes, where he has been a regular personal finance contributor for over a decade. His work combines both professional expertise and personal experience – he successfully navigated his own student loan repayment journey and has helped thousands of readers do the same.
He is committed to making the intersection of personal finance and education transparent and accessible. You can learn more about Robert on the About Page or on his personal site RobertFarrington.com.