BOSTON — The Trump administration has agreed to release $1.1 billion in funding for post-COVID-19 pandemic academic recovery it clawed back from Massachusetts and other states before the move was challenged in federal court.

The agreement with the U.S. Department of Education, announced last week in a letter to U.S. District Court Judge Edgardo Ramos, settles a multistate lawsuit filed in March by Attorney General Andrea Campbell and other Democrats alleging the federal agency’s move to claw back the congressionally approved funding violated the Administrative Procedure Act.

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