Saturday, October 4, 2025

CPS Loses Millions In Magnet School Money Amid Dispute With Trump Administration Over Diversity Efforts

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Introduction to the Dispute

CHICAGO — Chicago will lose millions in federal funding for magnet schools this year due to a dispute with the U.S. Department of Education over how the district serves Black and transgender students.

Background on the Funding

Trump administration officials said $5.8 million will not be awarded to Chicago in the coming year under the Magnet Schools Assistance Program and $17.5 million would not be awarded for the remaining years of the district’s grants. This decision stems from disagreements over the implementation of diversity and inclusion policies within Chicago Public Schools (CPS).

Impact on Chicago Public Schools Budget

As a result, Chicago Public Schools now faces a $8 million hole in its current $10.2 billion budget, district officials said Wednesday. Some of that total is carryover funds from last year. The federal government and CPS operate on different fiscal calendars, with Chicago’s starting July 1 and the federal government starting Oct. 1.

Ongoing Policy Issues

The new multimillion dollar budget hole comes as Chicago continues to be a target of the Trump administration on various policy issues, including diversity, equity, and inclusion efforts in public schools. Despite the funding fight, CPS is continuing to forge ahead with a Black Student Success Plan it rolled out in February and a Black Student Achievement Committee mandated by Illinois law.

Compliance with State and Federal Requirements

The district is also maintaining compliance with the Illinois Human Rights Act requirements to allow transgender students access to bathrooms and locker rooms that correspond with their gender identity. Both are subject to ongoing investigations by the Trump administration. These investigations and the subsequent withholding of funds indicate a deepening rift between CPS and the federal government over issues of diversity and inclusion.

Conclusion

The loss of millions in federal funding for magnet schools due to a dispute over diversity efforts marks a significant challenge for Chicago Public Schools. As CPS moves forward with its plans to support Black and transgender students, it must also navigate the financial implications of this decision. The situation highlights the complexities and controversies surrounding education policy at the intersection of federal, state, and local jurisdictions.

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