Donald Trump Withholds Federal Money From Schools: What To Know

Newsweek

01-07-2025

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President Donald Trump's administration has acted to withhold billions of dollars in federal education funding from states and local school districts, impacting a wide range of programs and threatening the financial stability of schools across at least 33 states and territories.
The administration notified grantees that funds previously slated for teacher training, after-school programs and services for English learners and migrant students would not be released on July 1 as expected, pending an ongoing departmental review of fiscal year 2025 grant funding, Politico reported Monday.
Estimates place the total amount affected nationwide between $5 billion and $6.8 billion, including at least $811 million earmarked for California alone. The move came with limited advance notice to states, many of which had already hired staff and planned programs expecting the money to arrive.
Newsweek has contacted the White House, Education Department and Office of Management and Budget by email for comment.
President Donald Trump's administration has acted to withhold billions of dollars in federal education funding from states and local school districts.
President Donald Trump's administration has acted to withhold billions of dollars in federal education funding from states and local school districts.
Getty
Why It Matters
The Trump administration's freeze affects more than 10 percent of federal K-12 education funding delivered to states, directly endangering after-school initiatives, professional development for teachers, support for migrant families and English language learning.
School leaders and advocacy groups warn that the delayed disbursement will create budget shortfalls and may force cuts to key services for vulnerable students.
Carissa Moffat Miller, head of the Council of Chief State School Officers, stressed the critical need for prompt distribution of the funds, saying they are essential for hiring staff and educating students. Many education officials have characterized the freeze as an unlawful attempt to advance the president's policy preferences through fiscal leverage, and legal challenges appear likely.
What To Know
Scope of Funding Freeze
The affected funds include major federal grant programs such as state teacher training grants (Title II-A), 21st Century Community Learning Centers for summer and after-school activities, Student Support and Academic Enrichment grants (Title IV-A), and programs for migrant education (Title I-C) and English learners (Title III-A).
Notices sent to state education agencies indicated that the Department of Education "will not be issuing Grant Award Notifications obligating funds for these programs on July 1 prior to completing that review."
Government Rationale
The White House and Education Secretary Linda McMahon previously signaled their intent to reassess or cut these programs, citing the desire to align funding with the president's education priorities, including opposition to bilingual education and some diversity initiatives.
The Office of Management and Budget Director Russell Vought has said funding could be rescinded through a "pocket rescission," a tactic allowing the administration to propose returning unspent appropriations to Congress for cancellation, Politico reported Monday.
State Impact and Response
California and other states received only a few hours' notice about the freeze, with local leaders expressing alarm at both the timing and the sweeping impact of the decision.
"They cannot withhold funding from states, from the education systems from students just because they want us to comply with their political agenda. This was money that was appropriated by Congress and the president cannot unilaterally keep it from students," David Schapira, chief of staff for California State Superintendent Tony Thurmond, told ABC7 News.
Speaking to the Los Angeles Times, Thurmond described Trump's move as "illegally impounding billions of dollars appropriated by Congress to serve students this fiscal year."
Federal Law and Legal Outlook
Federal law typically prohibits the White House from unilaterally withholding funds appropriated by Congress. Any presidential request to rescind funds must be approved by Congress within 45 days, or the money must be spent as directed.
Schapira told ABC7 News that California has previously challenged similar funding actions in court and has "been successful," suggesting legal challenges are forthcoming.
Impact on School Budgets
School districts, many of which have already made staffing and programmatic decisions based on projected federal revenues, face immediate financial strain. Tara Thomas of AASA, the School Superintendents Association, said the freeze would push unfunded mandates, impacting all classrooms.
What People Are Saying
Carissa Moffat Miller, executive director of the Council of Chief State School Officers, told Politico on Monday: "The administration must make the full extent of title funding available in a timely manner. "These funds were approved by Congress and signed into law by President Trump in March. Schools need these funds to hire key staff and educate students this summer and in the upcoming school year."
David Schapira, chief of staff for California State Superintendent Tony Thurmond, told ABC7 News on Monday: "They cannot withhold funding from states, from the education systems from students just because they want us to comply with their political agenda. This was money that was appropriated by Congress and the president cannot unilaterally keep it from students."
Tara Thomas, spokesperson for AASA, told Politico on Monday: "School districts rely on these critical funds to comply with federal law. Withholding these resources simply pushes more unfunded mandates on schools—placing additional strain on already limited budgets—and the consequences will be felt by all students and across all classrooms."
What Happens Next
The Department of Education has not indicated when the funding review will be completed or whether the grants will ultimately be released. If Congress does not approve a rescission request within 45 days, the law requires the administration to distribute the funds as originally planned.
States like California have signaled readiness to take court action if necessary. The timeline for resolution is unclear.