The Trump administration lost its bid to temporarily lift a federal judge’s order blocking the United States Education Department from laying off half its staff.
The Boston-based 1st U.S. Circuit Court of appeals rejected the administration's request to put a hold on the injunction issued by a lower-court judge after the urging of many Democratic-led states, school districts and school unions.
A three-judge panel rejected the effort in a 26-page decision, however, the Trump administration could still ask the Supreme Court to lift the order.
If the injunction remained in place, the Education Department would be blocked from gutting its 4,000-strong workforce.
The lawsuit was filed by 21 states, five labour organisations and two school districts that claim the department reduction violates the Constitution and the Administrative Procedure Act.
“What is at stake in this case, the District Court found, was whether a nearly half-century-old cabinet department would be permitted to carry out its statutorily assigned functions or prevented from doing so by a mass termination of employees aimed at implementing the effective closure of that department,” wrote Chief Judge David Barron in the appeals court’s decision.
Throughout his second term, President Donald Trump has attempted to dismantle the Department of Education and feuded with Harvard and Columbia University.
According to Education Week, federal funding accounted for 8% to 10% of public school budgets nationwide in December 2024, with the majority of it going towards districts serving vulnerable populations.
If the department is cut, it would Pell Grants that help low-income students afford college and federal loan services would face uncertainty or collapse, impacting around 43 million Americans with student loan debt.
The dismantling could also lead to the closure of some schools, leading to overreaching impacts on small businesses, real estate and the transportation industry in those areas.