LANSING, Mich. — Michigan Attorney General Dana Nessel announced Tuesday that the state resolved a Michigan federal education funding lawsuit by joining a multistate agreement with the Trump administration.

Specifically, the agreement prevents the U.S. Department of Education from withholding federal funds from state and local education agencies. Those agencies had declined to certify compliance with the department’s revised interpretation of Title VI of the Civil Rights Act of 1964.

Dispute over Title VI certification requirement

The dispute began April 3, 2025. On that date, the Department of Education informed states they must sign a certification reflecting the administration’s interpretation of Title VI. Otherwise, officials warned, states could lose federal education funding.

Michigan and several other states declined to sign the certification. As a result, Nessel joined a coalition of 19 attorneys general and filed suit on April 25, 2025.

The states argued that the funding condition violated constitutional and federal statutory provisions. For example, they cited the Spending Clause, the Appropriations Clause, and the Administrative Procedure Act.

Meanwhile, a related lawsuit moved forward in the U.S. District Court for the District of Maryland. In that case, American Federation of Teachers v. U.S. Department of Education, the court vacated the April 3 certification requirement. Subsequently, state officials said the administration dismissed its appeal.

Agreement protects federal funding

The newly announced agreement applies the Maryland ruling to Michigan schools. Therefore, the Department of Education may not withhold funds based on the challenged certification requirement.

In a statement, Nessel said educational agencies should not have to comply with what she described as unlawful funding conditions.

According to the Attorney General’s Office, the agreement protects more than $1 billion in federal education funding allocated annually to Michigan. Those funds support programs for low-income students, English language learners, teacher recruitment and training, and services for students in foster care or experiencing homelessness.

In addition, attorneys general from California, Colorado, Connecticut, Delaware, Hawai‘i, Illinois, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, Rhode Island, Vermont, Washington, and Wisconsin joined Michigan in the agreement.

Ultimately, the agreement resolves the Michigan federal education funding lawsuit filed by the states. However, it does not alter federal nondiscrimination statutes or existing Title VI requirements.