
Trump administration releases billions it withheld from schools
The government placed nearly $7 billion in funding under review on June 30, then released a $1.3 billion slice of it last week. The administration's review of the remaining funding has ended, the official said, speaking on the condition of anonymity because they were not authorized to speak on the record.
Rep. Don Bacon (R-Nebraska), celebrated the move on social media, noting he pushed for the money to be released. 'Exciting news to announce! All frozen education funding for the upcoming school year have been released,' he wrote on X.
Lawmakers of both parties had lobbied to release the funds, which support six grant programs related to English-language learning programs, teacher training, support for children of migrant workers and academic enrichment activities. The freeze was also being challenged in court by Democratic state and the D.C. attorneys general.
States expected the funding to be released on July 1, as normally happens each year. Instead, the Education Department notified states June 30 that the money was under review for compliance with President Donald Trump's priorities. The Office of Management and Budget said it was investigating whether any of the grant money had in the past been used for a 'radical leftwing agenda.'
The administration official said Friday that 'guardrails' would be in place 'to ensure these funds will not be used in violation of executive orders or administration policy.'
The holding back of the funds had resulted in last-minute financial juggling and acute anxiety in school districts preparing for an academic year that is weeks away.
A group of 24 states and the District of Columbia sued the Trump administration over the freeze last week, arguing that it violated the Constitution and federal law, in part because the money had been appropriated by Congress. More than 200 superintendents went to senators' offices on Capitol Hill this month to plead their case, and some lawmakers worked to pressure the administration to release the funds.
Last week, the Trump administration said it would release funding from one of the six streams that had been frozen, allowing $1.3 billion for after-school and summer programs to flow to schools.
Nearly three-quarters of superintendents who responded to a mid-July survey by AASA, the School Superintendents Association, said they would have to eliminate academic services for students if the rest of the federal funding were not restored.
Eighty-five percent of the superintendents said they have contracts that are supposed to be paid with the funds in question. Half said they would have to lay off staff and teachers without the money, including those who work with English language learners and special education students, according to AASA, which collected responses from more than 600 superintendents in 43 states.
'We are pleased public schools will receive the funding as appropriated by Congress for the 2025-26 school year,' AASA executive director David Schuler said in a statement Friday, noting 'how disruptive withholding these funds would be for our nation's students.'
In its original message to state education agencies, the Education Department said the funds were being reviewed 'given the change in Administrations.' Later, an OMB spokesperson told reporters the administration was investigating whether the funds had been used by any school districts for purposes such as scholarships for undocumented immigrant students or teachings on LGBTQ topics.
The Democratic states that sued the government contended that the administration violated the Administrative Procedure Act by failing to offer 'a reasoned explanation' for the funding review.
Superintendents in multiple states told The Washington Post this week that the withholding of the money would likely result in cuts in their districts and said they were holding out hope that the Trump administration would reverse course.
For some, the impacts of the lost funds would have been severe — particularly in areas with many students who are learning English. In Marshalltown, Iowa, where a pork plant draws migrant agricultural workers and immigrants from dozens of countries, the school district was facing a 'devastating blow,' said Theron Schutte, superintendent of the Marshalltown Community School District.
Schutte had contacted all his congressional representatives asking for help. District programs like swim lessons for summer school students — started after children drowned several years ago, Schutte said — were on the chopping block so that funds could be moved to support English language and other services.
'You have to prepare for the worst-case scenario,' Schutte said Thursday, before the funds were unfrozen. 'But … you're still hoping they'll do the right thing and release those funds.'
This is a developing story. It will be updated.
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