Chicago

Feds Pull Plug On Chicago Magnet Cash, School Board Hits Back In Court

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Published on March 14, 2026
Feds Pull Plug On Chicago Magnet Cash, School Board Hits Back In CourtSource: X/CPS - Chicago Public Schools

Chicago’s Board of Education has taken the U.S. Department of Education to court, accusing federal officials of yanking key magnet-school funding with little warning and even less explanation. The lawsuit, filed Friday, March 13, 2026, argues the sudden cutoff of Magnet School Assistance Program money could strip specialized programming from classrooms across the city.

Board files suit in federal court

The Board of Education of the City of Chicago filed its complaint in the U.S. District Court for the Northern District of Illinois, alleging the department unlawfully halted the district’s Magnet School Assistance Program awards. The suit says the decision came despite the district’s cooperation with federal probes and was based on two still-pending investigations, according to Bloomberg Law.

District says the department skipped due process

Chicago Public Schools argues that a September 16 letter from the Education Department gave the district only a few days to seek reconsideration, then moved straight to a non-continuation decision even though two Office for Civil Rights investigations were still open. In its formal response, the district requested records under the Freedom of Information Act and warned that cutting off the money so abruptly would directly harm students and magnet programming, according to Chicago Public Schools.

Federal investigators flagged Title VI and Title IX issues

Federal officials have said the funding move is tied to civil rights concerns. That includes a Title VI review of Chicago Public Schools’ Black Student Success Plan and a Title IX inquiry into policies for transgender and gender nonconforming students. The department’s Office for Civil Rights opened a Title VI investigation into the district earlier this year and indicated those probes influenced the grant decision, according to the U.S. Department of Education.

What magnet grants pay for

Magnet School Assistance Program awards help cover the costs of specialized curriculum, enrichment and recruitment that keep magnet schools running. Chicago Public Schools says the threatened funding supports campuses that are already working to expand STEM and other themed programs. The district has pointed to prior MSAP awards and warned that pulling this money mid grant will shrink field trips, extracurricular options and planned curriculum upgrades, according to Chicago Public Schools.

Part of a broader legal fight

Chicago’s lawsuit lands in the middle of a broader legal brawl over how the Education Department is tying grants to school district policies on race and gender. Other large districts, including New York City, have already gone to court to restore magnet funding, according to the NYC Mayor's Office. National litigation trackers report that multiple related cases are still pending, per Just Security.

What's next

The Chicago board is asking a federal judge to throw out the Education Department’s non-continuation decision and restore the MSAP awards while the case moves forward. The district has also sought records and an expedited review. So far, the department has not reversed course, and the lawsuit will test whether federal officials followed the rules before cutting off multi year grant funding, according to Bloomberg Law.