Central school-education funding has been made conditional on states adopting national policy, and is being litigated in the Supreme Court

National
State

Education is on the Concurrent List, having been moved there by the 42nd Amendment in 1976. The Union has tied continued disbursal of Samagra Shiksha funds — which states rely on for school education — to states signing memoranda adopting the PM SHRI scheme and, with it, NEP 2020 provisions. Tamil Nadu has litigated this in the Supreme Court under Article 131, which gives the Court exclusive jurisdiction over Centre-State disputes, alleging over ₹2,151 crore withheld for 2024-25 because of its refusal to implement NEP 2020 and PM SHRI; as of June 2025 the Court had declined an urgent hearing and the matter remained pending. Kerala signed the memorandum to release withheld funds and then suspended implementation amid coalition disagreement. Evidence confidence: High — a specific originating departmental letter, a specific sum, an active Article 131 case, and a second state's parallel episode.

1 sub-problem within this

The Three-Language Formula is formally rejected by at least one state, making language policy part of the funding dispute
NEP 2020's Three-Language Formula is contested by several states. Tamil Nadu has refused it outright and continues with a two-language policy, and its Supreme Court petition names the formula among its grievances — which is why this is recorded here as part of the funding dispute rather than duplicated as a separate problem under Language & Medium of Instruction. Maharashtra has responded differently, forming its own language-policy committee rather than refusing. The characterisation of the formula as de facto imposition of a particular language is the stated position of specific state governments and should be presented as such, not as established fact. Evidence confidence: High that the dispute exists and is active; the contested characterisations must be attributed to the parties making them.

Who is responsible

Ministry of Education — Department of School Education & Literacy · Ministry or DepartmentFund disbursal conditions
State Governments of Tamil Nadu and Kerala · State GovernmentThe other party to the dispute
Supreme Court of India · Constitutional or statutory institutionJurisdiction under Article 131

Evidence and sources

Supreme Court declines urgent hearing on Tamil Nadu's plea over withheld Samagra Shiksha funds, June 2025 · News reportReporting on the Article 131 proceedings.
Constitution of India — Article 131 and the Concurrent List entry for education · Government documentEducation moved to the Concurrent List by the 42nd Amendment, 1976.

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1 sub-problem within this

The Three-Language Formula is formally rejected by at least one state, making language policy part of the funding dispute

Who is responsible

Evidence and sources