Trump administration will release more than $5 billion in frozen education funding

CNN

25-07-2025

The Trump administration has decided to release the rest of the nearly $7 billion in funding for public schools that it had frozen, with little notice, earlier this month.
A senior administration official told CNN they have finished a programmatic review, and the additional funds will be released to the states. The administration previously announced the release of $1.3 billion of the frozen funds.
'Guardrails are in place to ensure these funds will not be used in violation of Executive Orders or administration policy,' the official added.
The nearly monthlong pause in critical funding set off a scramble in schools as they prepare for the fall and summer camps, which faced immediate impacts, with many worried about being able to keep their doors open for the duration of the summer.
The funding for K-12 programs included money for teacher education and recruitment, English language programs, student enrichment and nonprofit learning centers that partner with schools, among other initiatives.
Much of the money goes towards programs that serve some of the US' poorest children.
A day before the funds were to be released, the Department of Education instead sent a letter to programs, saying that money was being held, pending a review.
'The Department will not be issuing Grant Award Notifications obligating funds for these programs on July 1 prior to completing that review,' the email to recipients said. 'The Department remains committed to ensuring taxpayer resources are spent in accordance with the President's priorities and the Department's statutory responsibilities.'
The administration alleged the money was being used to promote 'leftwing' ideologies and was conducting a review. It comes as the Trump administration is seeking to dismantle the Department of Education, with mass layoffs underway and severe funding cuts under consideration.
Last week, after much outrage at summer camps and non-profits like the Boys and Girls Club that were facing immediate impacts of the frozen funds, the Office of Management and Budget decided to release the hold on $1.3 billion of the nearly $6 billion in funding that goes to 21st Century Community Learning Centers (21st CCLC) – affecting summer camp and after-school programs.
But the rest of the funds were still frozen, until now.
Earlier this month, some two dozen Democratic-led states sued the Department of Education in federal court to release the funds, which had already been approved by Congress.