Oregon Joins Lawsuit to Restore Hundreds of Millions in Pandemic Recovery Funds for Low-Income and Homeless Students

Additional funding worth hundreds of millions of dollars to help low-income and homeless K-12 students recover from the impact of the pandemic has been stopped by the Department of Education (DOE), leading Oregon to join a lawsuit of 15 Attorney Generals and a state Governor.

Funds Had Been Made Available to States Until March 2026

The decision to file a lawsuit against the DOE was announced yesterday by the Oregon Department of Justice in a news release. The lawsuit wants access to the funding previously made accessible to states until March 2026.

The funds were available from the American Rescue Plan Act (ARPA), and according to Oregon’s AG Dan Rayfield, the ‘sudden change in position has created a massive budget gap for state education departments and local school districts that will cause serious harm to students throughout the country.’

The three programs affected are Homeless Children and Youth (HCY), Elementary and Secondary School Emergency Relief (ESSER), and Emergency Assistance to Nonpublic Schools (EANS). Rayfield says the programs provide essential resources to help schools and students recover from the pandemic.

Homeless Children and Youth Program Provides Essential Resources for Homeless Schoolchildren

Rayfield says the HCY program bolsters support to homeless youths attending Oregon schools and is relied upon by the school system to provide food, personal care items, classroom supplies, field trip funding, and specialized training for teachers who work with homeless students.

The coalition-backed lawsuit asserts that the DOE’s abrupt termination of funding will cause ‘a massive, unexpected budget gap’ that will harm students and teachers by cutting off vital education services.

‘If access to this critical funding is not restored, states will be unable to provide essential public services, pay hundreds of public employees, or provide quality education to K-12 students,’ says Rayfield.

The coalition argues that the decision violates the Administrative Procedure Act. Rayfield and the coalition seek a preliminary and permanent court order preventing the DOE from arbitrarily changing its position so the states can continue to access the funds until March 2026, as previously decided.

Joining Attorney General Rayfield in the lawsuit are the Governor of Pennsylvania and the AGs of Arizona, California, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, and the District of Columbia.