The Trump administration has moved to withhold between $5 billion and $6.8 billion in federal education funding from states and local school districts, delaying disbursement of critical grants for teacher training, after-school programs, and services for English learners and migrant students across at least 33 states and territories, according to Politico.
Grantees were told that funds scheduled for release on July 1 would be held back pending a “programmatic review” of fiscal year 2025 grants. In California alone, the freeze is affecting an estimated $811 million, much of which had already been budgeted for staff salaries and student programs.
An administration official told Newsweek the action is part of a routine review and “not a freeze,” though school officials and legal experts strongly dispute that characterization.
Why It Matters
The decision places more than 10 percent of federal K-12 education funding in limbo, threatening essential programs for vulnerable students and straining school district budgets that were planned months in advance.
School leaders say the delay could lead to teacher layoffs, the suspension of after-school services, and cutbacks to programs supporting migrant families and English-language learners. Legal challenges are expected, with critics accusing the administration of leveraging federal funds to enforce political priorities.
Key Programs Affected
Among the major grant programs caught in the funding hold:
- Title II-A: Teacher training and professional development
- 21st Century Community Learning Centers: Summer and after-school activities
- Title IV-A: Student support and academic enrichment
- Title I-C: Migrant education
- Title III-A: Services for English learners
States received notice that the Department of Education would not issue Grant Award Notifications on July 1 until the review concludes.
Administration’s Justification
The White House and Education Secretary Linda McMahon have previously expressed interest in reshaping federal education funding to align with President Trump’s priorities—opposing bilingual education and some diversity initiatives.
OMB Director Russell Vought has floated using a “pocket rescission” tactic, which allows unspent funds to be returned to Congress for cancellation—a move experts say could violate federal budget law unless Congress acts within 45 days.
Backlash From the States
Education leaders in states like California say they were given little to no warning, causing panic among districts that had already hired staff and finalized budgets.
David Schapira, chief of staff to California State Superintendent Tony Thurmond, told ABC7:
“This was money appropriated by Congress. The president cannot unilaterally keep it from students to push a political agenda.”
Thurmond described the decision as “illegally impounding” billions that were legally allocated by Congress.
Federal law prohibits the White House from withholding appropriated funds without congressional approval. Similar past attempts have resulted in successful legal pushback.
Impact on Schools and Students
Many school districts have already made hiring decisions and launched programs based on anticipated federal funding. The sudden disruption is pushing costs onto state and local budgets already under strain.
Tara Thomas, spokesperson for the AASA (School Superintendents Association), told Politico:
“Withholding these resources simply pushes more unfunded mandates onto schools and places additional pressure on already limited budgets. The consequences will hit classrooms directly.”
Carissa Moffat Miller, CEO of the Council of Chief State School Officers, added:
“Congress approved these funds, and schools need them now—not months from now—to serve students effectively.”
What’s Next
The Department of Education has not announced a timeline for completing the review or clarified whether the withheld funds will ultimately be released.
Under federal law, if the administration attempts a rescission and Congress does not approve it within 45 days, the funds must be released as originally appropriated.
California and other states have signaled they are preparing for legal action if necessary. A court battle could determine how far a president can go in delaying or reshaping funds that Congress has already allocated.
The situation remains fluid, with no clear resolution in sight for school districts depending on the missing federal support.
