Raoul wins key court orders over funding education and economic programs

Attorney General Kwame Raoul

Attorney General
Kwame Raoul

Illinois Attorney General Kwame Raoul has scored two significant legal victories against the Trump administration’s attempts to revoke federal funding for education and dismantle key federal agencies—moves that would have disproportionately impacted underserved communities, including Black students, minority-owned businesses, and public institutions such as libraries and museums.

In a pair of preliminary injunctions issued by federal judges in Rhode Island and New York, the courts blocked the administration from enforcing policies that Raoul and a multistate coalition argue would violate federal law and harm millions of Americans.

On May 6, the U.S. District Court for the District of Rhode Island granted Raoul and 20 other attorneys general a preliminary injunction to halt the dismantling of three federal agencies: the Institute of Museum and Library Services (IMLS), the Minority Business Development Agency (MBDA), and the Federal Mediation and Conciliation Service (FMCS). The Trump administration had attempted to eliminate these agencies via executive order.

“The administration’s actions jeopardize critical library and museum programs across the state. These programs help residents of rural communities and underserved youth access educational opportunities and technology,” Raoul said. “I am proud to stand with my fellow attorneys general to stop the unconstitutional attempt to dismantle agencies created by Congress.”

The MBDA, in particular, plays a vital role in the economic advancement of Black-owned businesses across the country by offering federal financial assistance, training, and access to markets. In Chicago, organizations such as the Illinois Black Chamber of Commerce, the Far South Community Development Corporation, and Sunshine Enterprises have relied on MBDA-supported programming to bolster minority entrepreneurship.

Meanwhile, the IMLS provides funding and research support to institutions like the DuSable Black History Museum and Education Center, the Woodson Regional Library’s Vivian G. Harsh Research Collection, and community libraries on the South and West sides—many of which serve predominantly African American populations. The FMCS helps mediate labor disputes and protect workers’ rights, including unionized sectors where Black workers have fought for fair contracts.

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Separately, in a case with massive implications for public education funding, the U.S. District Court for the Southern District of New York issued a preliminary injunction forcing the Department of Education to restore states’ access to critical American Rescue Plan Act (ARPA) funds. These grants had been rescinded by a March 28 letter from Education Secretary Linda McMahon, despite previous assurances that the funds would remain available through March 2026.

“The Trump administration’s shortsighted and illegal decision to attempt to rescind already-appropriated education funding would hurt vulnerable students the most and could wreak havoc on the budgets of school districts throughout Illinois and the nation,” said Raoul. “I am committed to joining with my fellow attorneys general to stand up against the president’s continued illegal and reckless actions.”

Illinois stood to lose more than $77 million in funding through three ARPA-backed programs: Homeless Children and Youth (HCY), Elementary and Secondary School Emergency Relief (ESSER), and Emergency Assistance to Nonpublic Schools (EANS). These funds are essential for addressing the long-term impact of the COVID-19 pandemic on students—particularly those in Black communities where underfunded schools were hardest hit.

The lawsuit, filed on April 10, asserts that the department’s abrupt reversal created an unexpected budget gap that threatened to cut vital services to students and teachers alike. Raoul was joined by attorneys general from 17 other states and the governor of Pennsylvania in the education lawsuit. In both cases, the courts found a strong likelihood that the Trump administration’s actions violated the Administrative Procedure Act and overstepped constitutional authority.

“These victories protect not just funding—but futures,” said Raoul, whose office continues to fight against federal overreach that undermines equity and access.

With these rulings, Black-serving institutions—both educational and economic—will be able to maintain critical programs that serve as lifelines for children, entrepreneurs, and working families across Illinois.

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