Chicago Public Schools wins back millions in federal funding in lawsuit settlement

The Chicago Public School District will get back millions of dollars in funding after settling a lawsuit with the federal government.

This money comes after the U.S. Department of Education stripped the district of grants last year, saying it violated federal law with policies supporting Black and transgender students.

It's not clear exactly how much money is expected to be released as part of the settlement, but the Department of Education initially said it was withholding about $6 million plus funding for the future.

According to court documents obtained by CBS News Chicago read that CPS should have officially gotten those funds back by Friday, Aug. 28. That's when the U.S. Department of Education agreed to pay them back.

The school district sued the federal government back in March, saying grants were taken away without the correct legal process.

Last year, the trump administration said CPS violated the civil rights of students by having a black student success plan and policies that support transgender students.

So far, the education department has not said why it settled the case, but this comes as the district starts the school year with an almost $10 billion budget plan.

A spokesperson for CPS said in a statement:

"Chicago Public Schools (CPS) has recently received a Notice of Continuation for the Magnet School Assistance Program (MSAP) grant funding and is diligently working through next steps. CPS will continue doing everything possible to support continued, high-quality magnet school programming. The District looks forward to working with the U.S. Department of Education to ensure these resources reach schools and students as quickly as possible."