By Shaina Cole | Contributing Writer, Rocky Mountain Voice
Colorado public schools are facing a $70 million funding freeze—part of a broader $6.8 billion nationwide hold triggered by the U.S. Department of Education. At the heart of the conflict are federal objections to DEI and LGBTQIA+ initiatives in schools, which have already led to lawsuits and pushed districts to search for new funding before fall.
The freeze and federal justification
The funding suspension follows executive orders issued by the Trump administration in early 2025. According to a July 2 notice sent to state education departments, the Department of Education is reviewing already-approved funds to ensure they align with new presidential priorities.
Governor Jared Polis responded the same day, calling the action “a direct attack on children, families, and Colorado educators.” He added, “Investing in education and ensuring the best future for our children has been a top priority, and it is disappointing to see the federal government undermine our students and teachers.”
Colorado Education Commissioner Susana Córdova echoed the concern. “I am not signing that,” she said, referring to the federal demand that states certify the elimination of DEI programs. “We are committed to ensuring every student has access to the resources they need, and this freeze jeopardizes that commitment.”
Attorney General Phil Weiser filed suit with 15 other states on July 1, challenging the federal cancellation of mental health grants. The $70 million freeze, however, is not yet part of that case.
Equity prompts raise federal red flags
Title II, Part A—one of the programs under review—funds teacher training tools like the Equity Toolkit, which encourages educators to reflect on how personal experiences shape their teaching. Prompts ask, “How has my cultural background shaped my beliefs about marginalized communities?” and “What barriers might exclude certain students—and how can I address them?”
These prompts are part of a broader self-assessment given to educators through the CDE Equity Toolkit.
Source: Colorado Department of Education (CDE) Equity Toolkit – Educator Self-Assessment Form, accessed via public Google Form
Source: Colorado Department of Education (CDE) Equity Toolkit
The toolkit draws from sources like The Center For Culturally Proficient Educational Practice, which defines systemic oppression as a dynamic that transfers rights from one group to another. One section titled “The Challenge 2: Bias-Based Beliefs” discusses racism and identity-based inequities.
Federal officials cite this content as violating Section 3(a)(i) of the Ending Radical Indoctrination in K-12 Schooling order, which targets what it defines as “discriminatory equity ideology.” The material may also conflict with the Defending Women from Gender Ideology Extremism and Restoring Biological Truth to the Federal Government order, which prohibits educational content that undermines distinctions based on biological sex. Title IX of the Education Amendments of 1972 also remains a central point of contention and courts are divided over how far federal agencies can go in using it to justify funding restrictions.
Mental health, gender policies linked to funding freeze
Title IV, Part A — another program under review — funds student support and mental health initiatives. In Colorado, this includes the Poudre School District’s (PSD) Gender Support FAQs and the CDE-promoted nonprofit YouthSeen.
PSD’s guidance allows students to use restrooms and locker rooms consistent with their gender identity. “Colorado law requires schools to allow individuals the use of gender-segregated facilities consistent with their gender identity,” the document reads.
That provision, according to federal guidance, constitutes a “social transition” under Section 2(e) of the Ending Radical Indoctrination order. Section 3(a)(iii) targets such transitions for defunding if carried out without parental consent. The practice also conflicts with Section 4(d) of the Defending Women order, which mandates sex-based designation of intimate spaces.
PSD also permits transgender students to join the sports team aligned with their gender identity. The district’s FAQ states, “transgender students who identify as male or female can join the sports team that aligns with that identity.”
Federal officials argue this may conflict with Title IX rules that prohibit sex-based discrimination in federally funded programs.
The Defending Women executive order criticizes such policies as threats to women’s safety and dignity.
Legal experts remain divided over whether the executive branch can enforce funding cuts tied to such interpretations of Title IX. Colorado state law also grants independent protections for transgender students, creating legal tensions that courts may eventually need to resolve.
In Synergy, PSD’s student record system, students can update their gender identity without legally changing their name. PSD also bars deliberate misgendering, citing its own rules and Colorado law.
Parents Defending Education and similar groups say letting students change gender identity records without notifying parents sidelines families and could violate federal privacy laws, including the Family Educational Rights and Privacy Act (FERPA) and the Protection of Pupil Rights Amendment (PPRA).
YouthSeen, a nonprofit backed by CDE, hosts support groups and training sessions for LGBTQ youth and their families.
Its promotional materials cite statistics such as “73% face verbal abuse” and “82% feel unsafe at school.” Federal officials argue that these programs promote gender ideology and conceal social transitions from parents, triggering enforcement under multiple sections of the executive orders.
State doubles down despite federal threat
Governor Polis has pledged to use state funds to offset federal losses. Despite the funding freeze, CDE and PSD officials say they’re not walking away from their stance on equity and gender inclusion.
Lawmakers at the Capitol are weighing options to replace the lost $70 million, though no formal plan has been rolled out yet. Meanwhile, continuing current policies could provoke enforcement under Section 3(c) of the Ending Radical Indoctrination order, which directs the Attorney General to target school officials facilitating social transitions, and Section 5 of the Defending Women order, which prioritizes sex-based rights enforcement.
Allowing biological males to participate in girls’ sports could also invite action under Title IX. Although the Trump administration has adopted a strict sex-based interpretation, legal challenges are underway, and federal courts may ultimately decide whether funding can be withheld.
What’s next
With no clear date for when—or if—the funds will be released, school districts across the state have announced tentative plans to cut back on after-school offerings, counseling services, staffing, and teacher training programs—if the freeze continues.
The funding freeze itself is undisputed, but how the executive orders will hold up in court is another matter. With lawsuits in play and state and federal laws pulling in different directions, school leaders are left in legal limbo.