Trump administration releases over $6B in frozen education funds to the states

Fox News

26-07-2025

The Trump administration is releasing roughly $6.8 billion in previously frozen federal funds for K-12 programs, the Department of Education announced Friday. The announcement was made as Secretary Linda McMahon attended the National Governors Association (NGA) Summer Meeting in Colorado Springs, Colorado.
The Office of Management and Budget (OMB) "has completed its review of Title I-C, Title II-A, Title III-A and Title IV-A ESEA funds and Title II WIOA funds and has directed the Department to release all formula funds. The agency will begin dispersing funds to states next week," department spokesperson Madi Biedermann told Fox News Digital.
More than 20 Democratic attorneys general sued the Trump administration earlier this month, describing the Department of Education's federal funding freeze as unconstitutional and "debilitating" to states just weeks ahead of a new school year.
The bipartisan group of governors, including the NGA's outgoing chair, Gov. Jared Polis of Colorado, and its vice chair, Gov. Kevin Stitt of Oklahoma, thanked McMahon for unlocking the funding during the NGA's education session Friday.
"How can we better communicate to make sure that this chaos and uncertainty doesn't occur again around funding and that people know things earlier?" Polis asked McMahon on the Colorado Springs stage.
"No guarantees from me that we will eliminate all the communications gaps that do happen, but I can say that part of it is just the transition aspect," McMahon explained.
The education secretary said the other aspect of the federal funding freeze was that the OMB budget office "took some time to really review the title funding to look at all the programs, etc., before they were released. They were well satisfied. So, now, those funds are going to be going out."
McMahon assured the governors that now that they have reviewed title funding and gone through the process, "we wouldn't find ourselves in the same situation."
Several of the governors who attended Polis and McMahon's education discussion and had the opportunity to ask questions thanked the education leader for returning the federal title funds to the states.
Polis kicked off the NGA's summer session in Colorado Springs Friday with his signature policy agenda, "Let's Get Ready! Educating All Americans for Success."
McMahon said she was appreciative of the governors' questions and comments, and she committed to visiting as many states and speaking with as many governors as possible to grasp the full scope of the country's diverse educational needs.
In an exclusive interview with Fox News Digital ahead of her remarks, McMahon affirmed her commitment to collaborating with governors as the Trump administration seeks to dismantle the Department of Education.
"It's just incredibly important that if we are going to return education to the states, we have to talk to the governors," McMahon said.
"Clearly, education is a nonpartisan issue," McMahon added. "If we're going to return education to the states, that just means giving them back the part that is now provided by the federal government, and they're anxious for it."
Trump signed an executive order earlier this year to dismantle the Department of Education, fulfilling one of his key campaign promises during the 2024 presidential election.