The Trump administration has moved to withhold billions of dollars in federal education funding that states and local school districts had expected to receive on July 1, creating uncertainty for programs supporting after-school activities, teacher training, and services for migrant students.
According to notices sent Monday to federal grantees, the Education Department will delay obligating funds for a range of grants while it reviews spending for the 2025 fiscal year. Officials familiar with the decision described the action as a “programmatic review,” though some education advocates estimate roughly \$5 billion in funding is affected.
The grants in question include resources for summer learning, English language programs, the 21st Century Community Learning Centers, and state grants for professional development. These funds represent a significant portion of federal K-12 education support—an estimated 10 percent or more of federal dollars in over 30 states and territories.
Without clear timelines for releasing the money, states and districts are left scrambling to cover costs for the coming school year. Many had already budgeted for the funds, which were approved by Congress and signed into law earlier this year.
The White House has not commented, and the Education Department referred questions to the Office of Management and Budget. However, budget officials recently signaled the funding could ultimately be targeted for cancellation under a potential rescissions package later this fiscal year.
The administration has floated the possibility of using a controversial tactic known as a “pocket rescission,” which would let funds expire if withheld through the end of September. Earlier in June, the White House also directed several agencies to freeze up to \$30 billion in other programs.
School leaders and education groups warn the delay could immediately impact staffing, summer instruction, and compliance with federal education mandates, placing additional strain on already stretched district budgets.
Source: Poltico