Education Department set to pause billions in grants to states amid ‘review'
The Trump administration will withhold billions of federal education dollars from states and local schools that were expected to be available on July 1, according to notices sent to federal grantees on Monday.
It's a move with the potential to imperil afterschool programs, teacher training initiatives and education for migrant students. Some education advocacy groups estimate that approximately $5 billion is at stake.
According to the notice delivered to federal grantees, the contents of which were described to POLITICO on condition of anonymity by officials familiar with the matter, the administration is still reviewing fiscal 2025 grant funding for the affected programs. It has not yet made decisions about awards for the upcoming academic year, and will not obligate their funds on Tuesday before that review is complete.
'The Department remains committed to ensuring taxpayer resources are spent in accordance with the President's priorities and the Department's statutory responsibilities,' the agency said in written communications to states about its plans.
It's unclear how long the spending review might last or when the federal funds might be distributed. But the delay could leave states and schools facing immediate pressure to find ways to keep education programs running and balance their budgets for the coming academic year.
The Education Department referred questions to the Office of Management and Budget. The White House did not respond to a request for comment.
Officials said the affected funds include money for state teacher training grants; summer and after-school programs funded under the 21st Century Community Learning Centers program; the Student Support and Academic Enrichment grant program; and funds for migrant education programs plus students who speak limited English.
The impact of the decision will be felt across multiple jurisdictions. The funds being withheld from the affected programs represent at least 10 percent of the federal K-12 education spending in 33 states and territories, according to estimates published Monday by the Learning Policy Institute, a nonpartisan nonprofit think tank.
The administration has telegraphed the possibility that it would not distribute the funds by July 1 for months in spending plans submitted to Congress and testimony to lawmakers, raising worries and growing criticism among school advocacy organizations and congressional appropriators about the potential fiscal impact on school systems.
'The administration must make the full extent of title funding available in a timely manner,' said Carissa Moffat Miller, head of the Council of Chief State School Officers, in a statement to POLITICO. '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.'
OMB director Russell Vought suggested to Senate appropriators last week that the congressionally approved funding could be the target of a future rescissions package. President Donald Trump and Education Secretary Linda McMahon have also proposed cutting off some of the affected programs in their budget pitch for the coming year.
Vought has discussed using a controversial tactic known as a 'pocket rescission' to defy Congress' funding directives. To do that, the Trump administration would have to send additional budget rescission requests to Congress in the final weeks of the fiscal year, which runs through September.
Earlier this month, OMB directed several agencies to freeze upwards of $30 billion in spending on a broad array of programs, POLITICO's E&E News reported.
Even if lawmakers vote to approve or reject the requests, the White House could let the funding expire by withholding it through Sept. 30.
'School districts rely on these critical funds to comply with federal law,' Tara Thomas, the government affairs manager for AASA, The School Superintendents Association, said in a statement.
'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,' Thomas said.
Rebecca Carballo contributed to this report.
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