Education Department releases $7 billion held from schools nationwide

UPI

4 days ago

July 25 (UPI) -- The U.S. Department of Education finished releasing more than $7 billion in funds for school programs nationwide after a pause at the start of July, an agency spokeswoman said Friday.
Last week, $1.3 billion was released with more than $6 billion remaining. The U.S. Office of Management and Budget was reviewing the rest.
"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," said Madi Biedermann, deputy assistant secretary for communications for the Education Department, said in an email to media, including The Hill and ABC News. "The agency will begin dispersing funds to states next week."
Earlier, the Education Department didn't disperse routine payments for schools that include money for after-school and summer activities, classes for non-English learners and adults, and teacher preparation.
The funding was authorized by Congress and was due July 1, before the start of the school year. The school districts were notified of the pause one day before.
U.S. Sen. Shelley Moore Capito, a Republican serving West Virginia, had pushed for the funds' release. She and nine colleagues had written a letter to OMB.
"This supports critical programs so many West Virginians rely on and I made that clear to OMB Director Vought," Capito posted on X.
In a news release Friday, she said: "The programs are ones that enjoy longstanding, bipartisan support like after-school and summer programs that provide learning and enrichment opportunities for school aged children, which also enables their parents to work and contribute to local economies, and programs to support adult learners working to gain employment skills, earn workforce certifications, or transition into postsecondary education."
Also, 24 Democratic-led states and the District of Columbia filed suit July 14 seeking the funds' release.
A coalition of school districts, teachers' unions, nonprofits and parents sued Monday in Rhode Island.
Originally, the White House said the pause was because money was going to the "radical left-wing agenda."
Secretary of Education Linda McMahon told ABC News on Thursday: "We want to make sure that we have the right focus on what we're trying to do with our students."
She said it could be released by the end of the year.
An administration official told The Washington Post that unspecified "guardrails" were put on the money so they align with the policy.
More than 200 superintendents went to senators' offices to seek an end to the freeze.
David Schuler, executive director of the School Superintendents Association, applauded the change.
"On the heels of our survey released Tuesday, detailing how disruptive withholding these funds would be for our nation's students, we thank our members and allies on the Hill," Schuler said in a statement.
"We appreciate their tireless advocacy, communication and outreach to the Administration about the importance of releasing these critical funds."
The Education Department's proposed fiscal year 2026 budget is $66.7 billion, which is a 15.3% reduction , or $12 billion, from the previous year.
President Donald Trump wants to dismantle the Education Department, with states and other federal agencies taking over the dispersal of funds, including student loans and other programs.
On July 14, the U.S. Supreme Court allowed for mass firings by lifting an injunction while litigation proceeds. In March, the agency's workforce was slashed in half, with 1,378 terminated.
The high court didn't rule on abolishing the agency, which must be approved by Congress.