California Secures Order Blocking $4.9B Federal Education Funding Cuts

Attorney General Bonta files lawsuit to prevent Trump administration from withholding funds over FERPA compliance claims

Published on Feb. 13, 2026

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California Attorney General Rob Bonta has secured a temporary restraining order from a U.S. District Court, preventing the U.S. Department of Education from withholding $4.9 billion in federal education funding from the California Department of Education. The Trump administration had threatened to withhold the funds, claiming CDE facilitated and promoted policies that violate the Family Educational Rights and Privacy Act (FERPA).

Why it matters

This case highlights the ongoing tensions between California and the federal government under the Trump administration, with the state fighting to protect crucial education funding for its schools. It also raises questions about the scope of FERPA and how it should be interpreted when it comes to supporting transgender students in public schools.

The details

On January 28, 2026, the U.S. Department of Education sent CDE a letter alleging certain policies and practices pressure local education agencies to violate FERPA, which grants parents the right to access their children's education records. The findings letter demanded 'corrective actions' to achieve FERPA compliance, including requiring CDE to allow districts to affirmatively notify parents of any changes to a student's gender identity. The letter threatened to withhold $4.9 billion in federal education funding if CDE did not comply by February 11.

  • On March 28, 2025, the U.S. Department of Education opened an investigation into whether California local education agencies were violating FERPA.
  • On January 28, 2026, the U.S. Department of Education sent CDE a letter of findings alleging FERPA violations.
  • On February 12, 2026, the U.S. District Court for the Northern District of California granted California's request for a temporary restraining order, preventing the funding cuts.

The players

Rob Bonta

The Attorney General of California who filed the lawsuit and secured the temporary restraining order against the U.S. Department of Education.

U.S. Department of Education

The federal agency that threatened to withhold $4.9 billion in education funding from California over alleged FERPA violations.

California Department of Education

The state agency that was targeted by the U.S. Department of Education's claims of facilitating FERPA noncompliance among local education agencies.

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What they’re saying

“We will not stand by as the Trump Administration attempts to use baseless claims to attack crucial funding for California schools under the guise of enforcing FERPA.”

— Rob Bonta, Attorney General of California (independent.com)

What’s next

The U.S. District Court will hear arguments to determine whether to grant a preliminary injunction, which would extend the block on the funding cuts while the lawsuit proceeds.

The takeaway

This case highlights the ongoing conflict between California and the federal government under the Trump administration, with the state fighting to protect education funding and support for transgender students in public schools against the administration's claims of FERPA violations.