Three states have initiated legal action against the federal government over the cancellation of multi-million dollar grants designated for special education staff development programs. California Attorney General Rob Bonta, leading the multistate effort alongside Rhode Island and Wisconsin, filed the lawsuit Tuesday in the U.S. District Court for the Northern District of California.
The legal challenge centers on the Department of Education’s decision to terminate funding under the State Personnel Development Grant program, which provides financial support for professional training of special education personnel and services for children with disabilities. The grants, established through the 2004 Individuals with Disabilities Education Act, have historically funded initiatives to improve educational outcomes for students requiring specialized support.
California received its five-year grant allocation in 2022, with Rhode Island obtaining funding in 2021 and Wisconsin securing its award in 2024. The California Department of Education was scheduled to receive $2.1 million annually, totaling $10.5 million over the grant period. According to state officials, California serves more than 880,000 students eligible for special education services.
The plaintiff states contend that the funding termination occurred despite their programs meeting all established performance requirements and goals. According to the lawsuit, California’s program had successfully implemented reforms in personnel development for early intervention, early education, and transition services for children with disabilities.
The states received termination notices in September 2025, following what the plaintiffs describe as an administration-wide review of federal grants initiated in January 2025. The lawsuit alleges that the cancellations were based on unpublished policy priorities and lacked adequate justification. The plaintiffs claim their requests for reconsideration were denied without proper consideration.
Attorney General Bonta characterized the funding cuts as harmful to vulnerable students who depend on these resources for educational support. The lawsuit argues that the Department of Education violated federal law by departing from decades of established practice in administering the grant program. The plaintiffs assert that the department had previously managed the program through a predictable process involving application invitations and priority identification subject to public notice and comment procedures.
The legal filing alleges that the termination notices indicated the current administration’s policy priorities included opposition to references to diversity, equity, and inclusion initiatives. The states argue this represents an improper basis for discontinuing established educational support programs.
The State Personnel Development Grant program has operated for two decades as a mechanism to enhance the capacity of educators and administrators working with students who have disabilities. The program funds training initiatives designed to ensure timely and appropriate services while helping educators navigate early intervention strategies.
The lawsuit seeks a court ruling that would declare the grant cancellations unlawful and restore funding to the affected states. The plaintiffs argue that the federal government failed to follow proper procedures, changed program rules without appropriate notice, and based its decisions on unpublished criteria.
This legal challenge follows a related case in Oregon, where a federal judge previously ruled against similar grant cancellations affecting environmental research groups. The Ninth Circuit Court of Appeals upheld portions of that decision regarding research grants while reversing other aspects of the ruling.
The Department of Education has not yet responded publicly to the lawsuit or provided detailed justification for the funding terminations beyond the initial notices sent to the affected states.
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