Recently, the Madras High Court has urged the Union Government to reconsider its decision to withhold ₹2,152 crore in education funds owed to Tamil Nadu.

The court emphasized that the implementation of the Right to Education (RTE) Act should not be linked to the state's adoption of the National Education Policy (NEP) 2020.

The bench observed that the Centre’s financial obligations under the RTE Act are "independent" and must be fulfilled regardless of whether a state government has implemented NEP 2020. It noted that both the Centre and states share concurrent responsibility to ensure the effective execution of RTE provisions.

The court was hearing a petition filed by an individual who alleged that private schools in the state had yet to commence admissions under the RTE Act due to the funding impasse.

According to the Tamil Nadu government, the Union Government has withheld funds under the Samagra Shiksha scheme since 2021, allegedly due to "political animosity" stemming from the state’s opposition to NEP 2020. Under the scheme’s funding model, the Centre is to contribute 60% while the state covers the remaining 40%.

While the court refrained from issuing binding directions—citing the state’s pending appeal before the Supreme Court—it made pointed observations about the financial deadlock. It reminded the Tamil Nadu government of its duty to reimburse private schools admitting students under the RTE Act, stating, “The State cannot wriggle out of its commitments.” The bench made clear that such reimbursements are a statutory requirement, not a discretionary measure.

Tamil Nadu has consistently opposed NEP 2020, branding it "regressive" and contrary to the ideals of social justice. The ruling DMK government has strongly criticized the three-language policy, calling it a veiled attempt to impose Hindi on non-Hindi-speaking states. The state has also raised alarms over the NEP’s focus on multiple public exams in classes III, V, and VIII, arguing that these could push underprivileged children out of the school system.

Another contentious aspect is the proposal for entrance exams for undergraduate admissions in arts and science colleges. Tamil Nadu contends that this will disproportionately disadvantage students from economically weaker backgrounds and deepen existing social inequities.

The BJP, however, has rejected these concerns. The party defends the NEP as a “visionary roadmap” to transform India's education system and prepare the country for future challenges. It has clarified that the three-language formula is meant to foster linguistic diversity and is not intended to enforce any particular language.