Trump releases frozen school grants with conditions; most funds for California still in limbo

Los Angeles Times

19-07-2025

WASHINGTON — The Trump administration will release an estimated $1.3 billion in previously withheld grant money for schools nationwide, but has warned states that it will rescind funding not spent for 'allowable activities.'
About $5 billion to $6 billion remains in limbo. In typical years, this funding would have begun reaching states and school districts starting on July 1. California joined about two dozen states this week in suing for the release of the funds, calling the Trump administration action 'unconstitutional, unlawful and arbitrary.'
In filing their lawsuit, California officials estimated that they were due close to a billion dollars. The California Department of Education said it received word Friday that the partial release represented about $158 million of that total.
The partial release came after 10 Republican senators on Wednesday sent a letter imploring the Trump administration to allow frozen education money to be sent to states.
The senators said the withheld money supported programs that had longstanding bipartisan support and were critical to local communities. The money had been appropriated by Congress in a bill that was signed by President Trump.
'We share your concern about taxpayer money going to fund radical left-wing programs,' the senators wrote to the Office of Management and Budget. 'However, we do not believe that is happening with these funds.'
The Trump administration has argued otherwise, alleging that funding has been used to undermine policy goals that include having all classes conducted in English. The administration also accused agencies of using funds to advocate for immigrants who lack legal status in the country.
The notification to states about the release includes a long list of laws that states are warned not to violate including the U.S. Constitution, the Civil Rights Act of 1964 and Title IX of the Education Amendments of 1972, which bans discrimination based on sex.
'To the extent that a grantee uses grant funds for such unallowable activities,' which the notice does not define specifically, 'the [Education] Department intends to take appropriate enforcement action ... which may include the recovery of funds.'
In separate actions, the Trump administration already has threatened California with pulling all federal funding for violations of Trump administration policy. This threat was made recently in connection with the state allowing trans athletes to compete in girls' and women's sports and government officials designating their jurisdictions as sanctuaries for immigrants.
The withheld money paid for after-school and summer programs, adult literacy, English language instruction, teacher training and migrant education supports. The Office of Management and Budget said it held back the funds as part of a review to align spending with White House priorities.
The funds released Friday were partly intended to support many summer school programs, some of which shut down across the country due to the hold-back. This funding also supports after-school programming during the regular school year.
Without the money, school districts and nonprofits such as the YMCA and Boys and Girls Clubs of America had said they would have to close or scale back educational offerings this fall.
The money released Friday also pays for child care so low-income parents can work. In these programs, children also receive reading and math help, along with enrichment in science and the arts.
Despite the money's release Friday, schools and nonprofits have already been disrupted by two weeks of uncertainty. Some programs have made plans to close, and others have fallen behind on hiring and contracting for the fall.
'While we are thrilled the funds will be made available,' said Jodi Grant, executive director of the Afterschool Alliance, 'the administration's inexplicable delay in disbursing them caused massive chaos and harm.' Many after-school programs had canceled plans to open in the fall, she said.
David Schuler, executive director of AASA, an association of school superintendents, praised the release of after-school money but said that the remaining education funding should not be withheld.
'Districts should not be in this impossible position where the Administration is denying funds that had already been appropriated to our public schools, by Congress,' Schuler said in a statement. 'The remaining funds must be released immediately — America's children are counting on it.'
Republican Sen. Shelley Moore Capito (R-W.Va.), who chairs the Senate Appropriations subcommittee that oversees education spending, was among the senators who signed the letter, which called for the full release of funds, including for adult education and teaching English as a second language.
'The decision to withhold this funding is contrary to President Trump's goal of returning K-12 education to the states,' the senators wrote. 'This funding goes directly to states and local school districts, where local leaders decide how this funding is spent.'
Sen. Patty Murray (D-Wash.) called on the White House to release the rest of the money.
'At this very moment, schools nationwide are crunching the numbers to figure out how many teachers they will need to lay off as Trump continues to hold up billions in funding,' Murray said Friday in a statement. 'Every penny of this funding must flow immediately.'
Ma writes for the Associated Press.