Attorney General Bonta Secures Agreement Protecting $4.9 Billion in Funding for California Schools

OAKLAND — In a complete and final victory, California Attorney General Rob Bonta today announced an agreement permanently blocking the U.S. Department of Education’s efforts to impose illegal conditions on $4.9 billion in federal education funding to California. In April 2025, the U.S. Department of Education informed state and local agencies that they must accept the Trump Administration’s new and legally incoherent interpretation of Title VI of the Civil Rights Act of 1964 with respect to diversity, equity, and inclusion efforts — or else risk immediate and catastrophic loss of federal education funds. California, like many other states, refused to certify its compliance with these new requirements, explaining that there is no lawful or practical way to do so given the Department’s vague, contradictory, and unsupported interpretation of Title VI. Following a multistate lawsuit, co-led by California, and a major court loss in a related case, American Federation of Teachers v. Department of Education, the Trump Administration today conceded to the entirety of the relief sought by the states, fully resolving the case in California’s favor.  

“President Trump has once again admitted defeat. The Trump Administration tried to use vital funding for our schools and our children as leverage to impose its misguided, insidious culture war agenda — and it lost, decisively. Now, it’s waving the white flag, backing down rather than continuing to defend this illegal action in court,” said Attorney General Bonta. “Let me be clear: This was never about fighting discrimination; it was about bullying states like California into abandoning lawful diversity, equity, and inclusion initiatives. But our children’s education is not a bargaining chip. I’m pleased that, with today’s agreement, we are closing the book on this fight once and for all.”

BACKGROUND

The U.S. Department of Education provides California with $4.9 billion in congressionally mandated financial support each year for a wide variety of needs and services related to children and education. This funding includes financial support to ensure that students from low-income families have the same access to high-quality education as their peers, provides special education services for students with disabilities, allows schools to recruit and train highly skilled and dedicated teachers, funds programming for non-native speakers to learn English, and provides support to vulnerable children, including those in foster care and without housing. As a condition of receiving these funds, state and local education agencies provide written assurances they will comply with Title VI of the Civil Rights Act of 1964, which prohibits discrimination based on race, color, or national origin, and California has consistently and regularly certified its compliance with Title VI and its implementing regulations.

In April 2025, the Department issued a letter that conditioned continued federal financial assistance on state and local education agencies certifying that they are not operating programs inconsistent with the Trump Administration’s incorrect view that efforts supporting diversity, equity, and inclusion are unlawful, even as Federal statutes support and even require inclusion, diversity, and equal opportunity in education for all. Later that month, Attorney General Bonta co-led a multistate coalition in filing a lawsuit alleging that this condition violated the Spending Clause, the Appropriations Clause, the separation of powers, and the Administrative Procedures Act. 

In August, the U.S. District Court for the District of Maryland issued an order in a related case, AFT v. Department of Education, granting summary judgment to plaintiffs and vacating the certification requirement. The Trump Administration initially appealed the ruling, but in January, it withdrew its appeal, permanently resolving that case in AFT’s favor. 

The joint motion to dismiss, filed today in the multistate case, affirms this judgment and ensures the states receive the full relief sought in their lawsuit.