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Early this month, the U.S. Department of Education issued an ultimatum to K-12 public schools and state education agencies: Certify that you are not engaging in discrimination under the banner of diversity, equity and inclusion, or risk losing federal funding 鈥� including billions in support for low-income students.

The backlash was immediate. Some states with Democratic governors refused to comply, arguing that the directive lacks legal basis, fails to clearly define what constitutes 鈥�,鈥� and threatens vital equity-based initiatives in their schools.

After lawsuits from the National Education Association teachers union and the American Civil Liberties Union, the Department of Education agreed to delay enforcement until .

But states across the country, both liberal- and conservative-led, are worried about losing other aid: the pandemic-era money that in some cases they鈥檝e already spent or committed to spending.

The Department of Education has long played a critical role in distributing federal funds to states for K-12 education, including Title I grants to boost staffing in schools with high percentages of low-income students, and emergency relief like that provided during the COVID-19 pandemic.

Conservative-led states 鈥� particularly Mississippi, South Dakota and Arkansas 鈥� rely the most heavily on these funds to sustain services in high-need districts.

The 15 states with the highest percentage of their K-12 budget coming from federal funding in fiscal year 2022 鈥� the latest year with data available from the National Center for Education Statistics 鈥� voted for Trump in the 2024 presidential election. Similarly, 10 of the 15 states receiving the highest amounts of Title I funding in fiscal year 2024 also voted for Trump.

Mississippi and Kentucky have sent letters to the Department of Education expressing concern over halted pandemic aid.

The clash over federal funding comes even as the future of the Department of Education is murky, given President Donald Trump鈥檚 pledge to dismantle the department.

DEI-related cuts

In letters to the Department of Education, state officials and superintendents in Illinois, New York and Wisconsin pushed back against the DEI directive.

said they would not provide additional certification beyond what the state already has done, asserting that there 鈥渁re no federal or State laws prohibiting the principles of DEI.鈥� Illinois Superintendent Tony Sanders he was concerned that the Department of Education was changing the conditions of federal funding without a formal administrative process. Wisconsin Superintendent Jill Underly .

New York State Department of Education Counsel and Deputy Commissioner Daniel Morton-Bentley noted that the federal department鈥檚 current stance on DEI starkly contrasts with its position during Trump鈥檚 first term, when then-Education Secretary Betsy DeVos supported such efforts.

and also confirmed they would not comply with the Department of Education鈥檚 order.

While some states with liberal leaders are gearing up for legal battles and possible revocation of funding, conservative-led states such as Florida have embraced the federal directive as part of a broader push to reshape public education.

In Florida, have been in place dating back to 2023. In fact, say they plan to follow the federal department鈥檚 directives, noting the similar state laws.

Pandemic aid cancellations

In March, the Department of Education abruptly rescinded previously approved extensions of pandemic-era aid, ending access to funds months ahead of the original March 2026 deadline.

When the Massachusetts governor鈥檚 office voiced concern over that decision, the federal department鈥檚 reply on social media was blunt: 鈥溾��

Sixteen and the District of Columbia filed a federal lawsuit against the Department of Education and Secretary Linda McMahon, challenging the abrupt rescission of previously approved extensions for spending COVID-19 education relief funds.

But backlash against abrupt federal cuts to education has not been limited to blue states.

Mississippi鈥檚 Department of Education warned the cuts would jeopardize more than $137 million in already obligated funds, slated for literacy initiatives, mental health services and infrastructure repairs. 鈥淭he impact of this sudden reversal is detrimental to Mississippi students,鈥� state Superintendent Lance Evans wrote in to McMahon.

The letter also outlines the state鈥檚 repeated 鈥� but unsuccessful 鈥� efforts to draw down millions in approved funds since February.

Shanderia Minor, a spokesperson for the Mississippi education department, told Stateline the agency is awaiting next steps and direction about the funds and federal directives.

In Kentucky, state Education Commissioner Robbie Fletcher 鈥� which stand to lose tens of millions in pandemic aid 鈥� that abrupt federal changes leave them 鈥渋n a difficult position,鈥� with schools already having committed funds to teacher training and facility upgrades.

According to Kentucky Department of Education spokesperson Jennifer Ginn, the state has about $18 million in unspent pandemic aid funds left to distribute to districts. And districts have about $38 million in unspent funds, for a total $56 million that could be lost.

Lauren Farrow, a former Florida public school teacher, told Stateline that schools that receive Title I money are already underfunded 鈥� and the federal threat only widens the gap.

鈥淔lorida is pouring billions into education 鈥� but where is it going? Because we鈥檙e not seeing it in schools, especially not in Title I schools,鈥� said Farrow. 鈥淚 taught five minutes away from a wealthier school, and we didn鈥檛 even have pencils. Teachers were buying shoes for students. Why is that still happening?鈥�

Effects in the classroom

Tafshier Cosby, senior director of the Center for Organizing and Partnerships at the National Parents Union, a parents advocacy group, told Stateline that while most families don鈥檛 fully understand the various school funding systems, they feel the impact of cuts in the classroom.

Cosby said parents are worried about the loss of support services for students with disabilities, Title I impacts, and how debates about DEI may deflect from more urgent needs like literacy and teacher support.

鈥淲e鈥檝e been clear: DEI isn鈥檛 the federal government鈥檚 role 鈥� it鈥檚 up to states,鈥� she said. 鈥淏ut the confusion is real. And the impact could be devastating.鈥�

Today, as a consultant working with teachers across Florida鈥檚 Orange County Public Schools 鈥� one of the largest districts in the country 鈥� Farrow says many educators are fearful and confused about how to support their students under changing DEI laws.

鈥淭eachers are asking, 鈥楧oes this mean I can鈥檛 seat a student with glasses at the front of the room anymore?鈥� There鈥檚 so much fear around what we鈥檙e allowed to do now.鈥�

鈥淭here鈥檚 no one giving teachers guidance or even basic acknowledgment. We鈥檙e just left wondering what we鈥檙e allowed to say or do 鈥� and that鈥檚 dangerous.鈥�

Amanda Hern谩ndez contributed to this report. Stateline reporter Robbie Sequeira can be reached at [email protected].

is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Stateline maintains editorial independence. Contact Editor Scott S. Greenberger for questions: [email protected].

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