Trump sued by 20 states to halt the ‘dismantling’ of Education Department

Trump sued by 20 states to halt the ‘dismantling’ of Education Department


A security guard walks past the U.S. Department of Education headquarters in Washington, D.C., March 12, 2025.

Nathan Howard | Reuters

A group of Democratic state attorneys general filed a lawsuit against the Trump administration Thursday over its moves to dismantle the U.S. Department of Education and its termination of nearly half the agency’s staff.

Attorneys general from 20 states and the District of Columbia filed the legal challenge in response to the administration’s dismissal of more than 1,300 workers at the department.

“The lay-offs are an effective dismantling of the Department,” the state AGs wrote.

“[The] Department’s authority to administer [Reductions in Force] does not override Congress’s exclusive authority to abolish executive agencies or to discontinue their functions,” they added.

As an agency authorized by Congress, the Education Department cannot be eliminated without congressional approval. But in the meantime, the Trump administration can slowly starve it by cutting resources.

The plaintiffs named in the lawsuit are President Donald Trump, Secretary of Education Linda McMahon and the U.S. Department of Education.

The White House and the Education Department did not immediately respond to a request from CNBC for comment.

More from Personal Finance:
Here’s the inflation breakdown for February 2025 — in one chart
‘Volatility is part of the game’: What financial advisors are telling clients
Women will get most of the $124 trillion ‘great wealth transfer’

On Tuesday, McMahon said on CNBC’s “Squawk Box” that efforts to dismantle the agency are “proceeding as expeditiously as possible.”

The Education Department manages the country’s more than $1.6 trillion student loan portfolio, provides funding for schools and ensures civil rights.

This is a developing story. Please check back for updates.



Source

Novo Nordisk’s stock plunge isn’t surprising. Why companies clear the deck for new CEOs
World

Novo Nordisk’s stock plunge isn’t surprising. Why companies clear the deck for new CEOs

Novo Nordisk shares nosedived on the day its new chief executive, Maziar Mike Doustdar, was appointed. But that shouldn’t have come as a surprise to investors. Minutes before the news of Doustdar’s appointment on Tuesday, the Danish pharmaceutical giant reported a profit warning, slashing its operating profit growth by around a third to the new […]

Read More
iPhone maker Foxconn joins  trillion AI data center market with new alliance
World

iPhone maker Foxconn joins $1 trillion AI data center market with new alliance

Foxconn Hon Hai Technology Group signage during the Nvidia GPU Technology Conference (GTC) in San Jose, California, US, on Thursday, March 20, 2025. David Paul Morris | Bloomberg | Getty Images Foxconn on Wednesday said it is taking a stake in TECO Electric & Machinery Co., as it looks to supercharge its efforts to become […]

Read More
U.S. economy grew at a 3% rate in Q2, a better-than-expected pace even as Trump’s tariffs hit
World

U.S. economy grew at a 3% rate in Q2, a better-than-expected pace even as Trump’s tariffs hit

Shipping containers are stacked on the Ever Magic container ship operated by Evergreen at the Port of Los Angeles on June 25, 2025 in Los Angeles, California. Mario Tama | Getty Images The U.S. economy grew at a much better than expected pace in the second quarter, powered by a turnaround in the trade balance […]

Read More