A Lawsuit By Other States Enabled Sanders to Fight For Vermont's School Funds
The decisive blow that ultimately saved the funding for Vermont was not delivered in a Senate office, but in a New York federal courthouse, by a coalition of states that did not include Vermont.
When Senator Bernie Sanders’s office announced on Friday that nearly $17 million in frozen federal education funds were being restored to Vermont, a collective sigh of relief was heard from school boards and parents across the state. The news, trumpeted in a press release and video from the senator, cast him as the singular hero who had successfully reversed a controversial Trump administration policy.
The narrative was powerful and quickly took root. "Sanders restores $17 million for Vermont schools cancelled by the White House," declared one Vermont business publication. The Harwood Unified Union School District gratefully posted, "Bernie Comes Through for Harwood."
For many Vermonters, the story was simple: Bernie went to bat for the state and won. And while the senator and his staff undoubtedly played a key role in advocating for Vermont, a deeper look reveals a more complex picture. The decisive blow that ultimately saved the funding for Vermont—and for the entire nation—was not delivered in a Senate office, but in a New York federal courthouse, by a coalition of states that did not include Vermont.
The crisis began on March 28, 2025, when U.S. Education Secretary Linda McMahon, appointed by the new Trump administration, abruptly rescinded permission for states to spend their remaining COVID-era school relief funds. This administrative maneuver, part of a broader effort to slash the department's budget and influence, instantly froze an estimated $2.5 billion nationwide. For Vermont, it meant nearly $17 million earmarked for critical projects in 19 school districts—from HVAC upgrades to academic tutoring—vanished overnight, throwing local budgets into chaos.
While Senator Sanders’s office began applying political pressure and assisting local districts with a bureaucratic appeals process, a different battle was taking shape. On April 11, a formidable coalition of 16 states and the District of Columbia, led by New York Attorney General Letitia James, filed a federal lawsuit against the Department of Education. They argued the administration's clawback was "arbitrary and capricious" and a violation of federal law. Vermont was not a party to this lawsuit.
On May 6, the states won a resounding victory. U.S. District Judge Edgardo Ramos granted a preliminary injunction, a legal order halting the policy. He found the states were likely to win their case and called the Department's justification "not a reasonable explanation."
This court order was the game-changer, but its immediate effect was limited to the states that had sued. Vermont's funds, along with those of 33 other non-plaintiff states, remained frozen. The ruling, however, created a political and administrative nightmare for the Department of Education, establishing a two-tiered system where some states had court-ordered access to their money and others didn't.
The situation proved legally and politically untenable. On Friday, June 27, Secretary McMahon reversed course entirely, restoring the original spending deadline for all 50 states. The reason, stated in her own letter to state education leaders, was not a change of heart or the result of political persuasion. The nationwide reversal was necessary, she wrote, because the "ongoing litigation has created basic fairness and uniformity problems."
The Department's own admission reveals that the lawsuit—the one Vermont did not join—was the primary cause of the policy's collapse.
This does not mean Senator Sanders’s efforts were insignificant. As the Ranking Member of the Senate's education committee, he held what his office described as "several conversations" with Secretary McMahon to urge a reversal. More concretely, his staff worked directly with the 19 affected Vermont school districts to submit 88 separate applications through the Department’s own appeals channel.
This was critical constituent service that ensured Vermont’s projects were documented and ready to go the moment the funds were released. At the same time, Vermont's own Agency of Education was pursuing parallel administrative waivers for the affected projects.
Ultimately, the lawsuit kicked the door open, and Senator Sanders, a skilled political operator, expertly guided Vermont through it. His office’s swift and effective announcement on Friday allowed him to define the victory in the public square, providing a welcome and straightforward resolution for a state already reeling from a painful and complex debate over its own local education funding formula.
The restoration of the $17 million was a victory born from a multi-front battle. It was won in a courtroom by a coalition of states that took the legal risk, and its benefits were extended to all. Here in Vermont, the state’s senior senator played a valuable supporting role, ensuring his constituents were positioned to claim their share of the win. While the headline "Bernie Comes Through" is true, it doesn't tell the whole story.