In a federal lawsuit filed Thursday in Massachusetts say the layoffs are so severe that the department "can no longer function, and cannot comply with its statutory requirements."
The states include New York, Massachusetts, Hawaii, California, Arizona, Colorado, Connecticut, Delaware, Washington D.C., Illinois, Maine, Maryland, Michigan, Minnesota, Nevada, New Jersey, Oregon, Rhode Island, Vermont, Washington and Wisconsin.
It alleges the cuts will result in a loss or delay of federal money for public schools, and will leave the agency unable to administer college financial aid or enforce civil rights laws at schools, among other disruptions.
"This massive reduction in force is equivalent to incapacitating key, statutorily mandated functions of the Department, causing immense damage to Plaintiff States and their educational systems," the lawsuit said. "Far from being just a 'first step,' the layoffs are an effective dismantling of the Department."
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A department spokesperson did not immediately respond to a request for comment.
The department has insisted previously it will continue to deliver on its statutory obligations, despite the cuts.
Some Education Department employees have left through buyout offers and the termination of probationary employees. After a layoff of 1,300 people announced Tuesday, the department will sit at roughly half the 4,100 it had when President Donald Trump took office.
Trump has repeatedly said he wants the agency shut down, calling it wasteful and overly influenced by liberal thinking.
The suit says only Congress has the power close the department or dismantle its core work.
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New York Attorney General Letitia James said the cuts will impair necessary services for students and families.
"This outrageous effort to leave students behind and deprive them of a quality education is reckless and illegal. Today I am taking action to stop the madness and protect our schools and the students who depend on them," James said.
The Associated Press and ABC News contributed to this report.