Latest news with #U.S.DepartmentofEducation
Axios
5 hours ago
- Politics
- Axios
Trump administration releases portion of frozen North Carolina education funding
The U.S. Department of Education has released a portion of North Carolina's $165 million in education funding frozen by the Trump administration, the state's education department announced Monday night. Why it matters: The nearly $36 million in funding released will allow North Carolina's after-school and summer programs to continue operating. The programs, which served more than 10,000 K-12 students last year, "provide critical academic support and safe environments for students, particularly those in high-poverty areas," North Carolina's Department of Public Instruction said in a statement. Catch up quick: North Carolina Attorney General Jeff Jackson is one of a dozen attorneys general nationwide who are suing the U.S. Department of Education for withholding more than $6 billion in education funding nationwide. Those funds were expected to be accessible July 1. North Carolina's portion of that — more than $165 million — made up more than 10% of the state's federal education funding. The freeze comes amid what the Trump administration's Office of Management and Budget called an "ongoing programmatic review" and pointed to initial findings that they said "show that many of these grant programs have been grossly misused to subsidize a radical leftwing agenda," Axios' Avery Lotz reported earlier this month. Driving the news: Nearly 30 statewide full-time jobs would have been in jeopardy had the federal government not released $36 million as part of the 21st Century Community Learning Centers program, which supports academic enrichment during non-school hours, per data released by North Carolina's Department of Justice. Wake, Durham and Charlotte-Mecklenburg school districts had not been awarded any funding under that program, according to the data. State of play: Around $130 million in K-12 education funding remains frozen and under review, North Carolina's education department said. More than 900 jobs remain at risk. Those funds come from four programs, which support migrant children, help students learn English, ensure the "quality and effectiveness of educators," and improve school conditions and the use of technology to improve academic achievement, according to the Learning Policy Institute, which conducts research to improve education policies.
Axios
5 hours ago
- Politics
- Axios
North Carolina sues over withheld education funding
North Carolina Attorney General Jeff Jackson said Monday he is suing the U.S. Department of Education for withholding more than $165 million for K-12 funding in the state. Jackson is joining attorneys general in more than a dozen states who are suing the Trump administration's decision to withhold more than $6 billion in education funding nationwide. Why it matters: At a press conference, Jackson said the withheld funds will affect mental health services, after-school programs and English-learning programs across the state, and potentially cut 1,000 jobs. These cuts affect rural school districts more on a per-pupil basis, Jackson added, specifically noting Graham, Ashe and Polk counties. Zoom in: The withheld funds include money for programs for migrant children, English-language proficiency and some after-school programs, according to the Learning Policy Institute, which conducts research to improve education policies. What they're saying: The Department of Education previously referred Axios' questions on the withheld funds to the Office of Management and Budget. An OMB spokesperson said no decisions have been made amid "an ongoing programmatic review of education funding." The spokesperson pointed to initial findings that they said "show that many of these grant programs have been grossly misused to subsidize a radical leftwing agenda." Jackson said in a statement that the Education Department was not following the Constitution. "It's unlawful and unconstitutional for the Department of Education to withhold money that Congress has appropriated," he said. "I'm going to court to get this money for our students, our schools, and North Carolina families."
CNBC
6 hours ago
- Business
- CNBC
Trump's 'big beautiful bill' created a new student loan repayment plan: Here's what borrowers need to know
When Congress passed the "big beautiful bill" earlier this month, and President Donald Trump signed it into law, it created a new student loan repayment plan. Next year, millions of borrowers will have access to that new option, called the "Repayment Assistance Plan," or RAP. Because the legislation also phases out a number of the U.S. Department of Education's existing repayment plans, RAP may be the only affordable choice for some. Here's what to know about RAP. RAP is what the Education Department calls an "income-driven repayment plan." Congress created the first IDR plans back in the 1990s to make student loan borrowers' bills more affordable. Historically, the plans cap people's monthly payments at a share of their discretionary income and cancel any remaining debt after a certain period, typically 20 years or 25 years. RAP is different in a few significant ways. For one, it doesn't shield a portion of a borrower's income like other IDR plans do, but rather calculates their bill based on so-called adjusted gross income. (AGI is your total earnings before taxes, minus certain deductions.) More from Personal Finance:Trump's 'big beautiful bill' includes these key tax changes for 2025Student loan bills to double for some borrowers as Biden-era relief expiresWhat a Trump, Powell faceoff means for your money The share of a borrower's income that the plan requires also rises the more they earn. Under RAP, monthly payments will typically range from 1% to 10% of your earnings; the more you make, the bigger your required payment. There will be a minimum monthly payment of $10 for all borrowers. (Under other IDR plans, certain low-income borrowers were entitled to a $0 monthly payment.) RAP leads to student loan forgiveness after 30 years, compared with the typical 20-year or 25-year timeline on other IDR plans. RAP should be available by July 1, 2026, according to the Education Dept. Borrowers with existing loans will maintain access to some existing repayment plans, including Income-Based Repayment, or IBR. However, after July 1, 2026, new borrowers will have just two options. They can pick between RAP or a standard repayment plan, under which their debt is divided into fixed payments over a period ranging from 10 years to 25 years, depending on their balance. An important point to keep in mind: Even borrowers with old loans who take out a new one after July 1, 2026 will lose the existing options for that loan, said Scott Buchanan, executive director of the Student Loan Servicing Alliance, a trade group for federal student loan servicers. This will affect students partway through their degree, for example. "If you borrow again, you will be in the world of two choices," Buchanan said. RAP comes with a few perks. Federal student loan borrowers get $50 off their monthly bill per qualifying dependent, for example. Those who are keeping up with their bills but aren't making progress paying down their principal will also get a small subsidy by the Education Dept. Plus, payments made under RAP will give borrowers credit on the decade-long timeline to debt relief under the Public Service Loan Forgiveness program.
Chicago Tribune
a day ago
- Politics
- Chicago Tribune
Gov. JB Pritzker joins letter demanding release of federal education funding, with billions still in limbo
Gov. JB Pritzker signed a letter with 17 other Democratic governors Thursday, calling on the Trump administration to release nearly $7 billion in withheld federal education grants. The grants, already appropriated by Congress, were abruptly frozen the day before they were set to be disbursed July 1. The paused funding included $241.8 million for Illinois schools and community colleges, supporting a wide range of programs including English-language instruction and migrant education. The White House initially said the funds were under review because they were being used to advance 'a radical left-wing agenda.' 'The U.S. Department of Education's failure to distribute these funds is unacceptable,' the letter said. 'It disrupts school operations, undermines student services, and violates the Department's obligation to administer funding in a timely and responsible manner.' On Friday, the White House's Office of Management and Budget said it had completed its review of one of the grants, releasing $1.3 billion for after-school programs. That still leaves billions of funding in limbo as schools scramble to set their budgets for the upcoming school year. A coalition of 24 states including Illinois and the District of Columbia had sued the Trump administration July 14, accusing officials of illegally withholding the already-approved funds. 'The Trump administration is not only openly flouting the law, they are abandoning their responsibility to our students,' Pritzker said in a statement Thursday. 'This unprecedented and irresponsible withholding of lawful, bipartisan funding will force cuts to critical programs and hold back the next generation from reaching their full potential.' In Illinois, the impacted grants include $75.6 million for teacher training and professional development, $30.4 million for English learners, $56.6 million for student support and school upgrades, $1.9 million for migrant education, $20 million for adult education and $3 million for adult English learners and civics education. The absence of funding has 'caused unnecessary chaos for schools,' who rely on the allocations to support students and low-income families, according to the letter. 'This delay is arbitrary, unprecedented, and indefensible,' the letter said. The letter was addressed to Secretary of Education Linda McMahon and Office of Management and Budget Director Russell Vought. Along with Pritzker, it was signed by the governors from Arizona, California, Colorado, Connecticut, Delaware, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, Maine, New Mexico, New York, Oregon, Rhode Island, Washington and Wisconsin.
USA Today
3 days ago
- Politics
- USA Today
Trump just made it harder to close the Education Department
Trump has said he wants to close the Education Department, but he just gave the agency a long to-do list WASHINGTON – When President Donald Trump signed a megabill with his spending and policy priorities into law on July 4, he distanced himself from another one of his goals: dismantling the U.S. Department of Education. Congressional Democrats have already tried to stand in the way of that effort – sometimes literally. So have the federal courts, which continue to debate the legality of the president's attempts to weaken the agency, whose work impacts students and schools across the country. But there's one obstacle that's less evident: the so-called "One Big, Beautiful Bill Act." Starting next year, the law will create two brand-new federal student loan repayment plans. It also expands Pell Grants, a staple of college financial aid, to include weekslong post-high school training programs. And it binds colleges to a fresh set of rules meant to protect students and save taxpayers money. Under the law, there's one person ultimately responsible for carrying out those directives: Education Secretary Linda McMahon. Her entire department will be required to mobilize its depleting resources to execute the wishes of Congress and the president. That dynamic puts Trump in an awkward position. In February, he said he wanted McMahon to "put herself out of a job." (In order to legally do that, he'd need the support of Senate Democrats, which he doesn't have.) But by signing his signature spending law, Trump gave McMahon a laundry list of important things to do. And those asks won't be simple or easy to turn into a reality, experts and former Education Department employees have said, without the right people to make them work. Trump has already cut the agency's workforce in half this year, and the Supreme Court on July 14 allowed more than 1,000 workers to stay fired while their layoffs are challenged in court. "I do have significant concerns that the speed of the cuts will have left us with a department that is unable to effectively implement this legislation," Beth Akers, a senior fellow at the right-leaning think tank the American Enterprise Institute, told USA TODAY during a recent webinar. Those worries were echoed by Jon Fansmith, senior vice president for government relations and national engagement at the American Council on Education, the country's main higher education association. "You can definitely anticipate a lot of problems," he said. College financial aid administrators are warning of "significant disruption" for students who rely on help to pay for school. Read more: How FAFSA 'fixes' have turned College Decision Day into chaos In spite of that unease, top officials at the Education Department have stressed that the agency is well-positioned to enact the law. On July 18, the agency published some guidance for implementation, and more information would be provided "in the weeks and months ahead," said Jeffrey Andrade, a top agency official. "Just within President Trump's first six months, the Department has responsibly managed and streamlined key federal student aid features," deputy press secretary Ellen Keast said in a statement to USA TODAY. "We will continue to deliver meaningful and on time results while implementing the President's OBBB ('One Big Beautiful Bill') to better serve students, families, and administrators.' New student loan repayment plans, Pell Grant expansion For anyone who takes out new federal student loans after July 1, 2026, the law eliminates all current repayment programs and replaces them with only two: a standard plan and a plan based on borrowers' incomes. The more than 40 million Americans who already have federal student loan debt will still have access to some old repayment plans. But the 8 million borrowers enrolled in President Joe Biden's signature repayment plan will have to be switched to a different one by 2028. All of that work will be carried out by the Federal Student Aid office, a branch of the Education Department. The "One Big, Beautiful Bill Act" also creates a special type of Pell Grant. It will be made available to students enrolled in short-term programs between eight and 15 weeks long in fields like cosmetology and welding. The Education Department has to start vetting and allowing schools to receive that money by July 2026. Different college oversight rules Trump's new legislation additionally tasks the Education Department with enforcing a framework for holding colleges and universities accountable for getting students well-paying jobs after graduation. Republicans call the measure a "do no harm" test. Put simply, it takes away the ability of some college programs to let students take out federal loans if those schools aren't providing a good return on investment. To fully implement the program, staffers at the Education Department have a lot of number-crunching to do. They'll likely need data from colleges, the Internal Revenue Service, the Bureau of Labor Statistics and states, Fansmith said. All of that information will need to be aggregated and calculated across tens of thousands of programs, and thousands of schools, over a yearslong period. Robert Jason Cottrell, who was a data coordinator in the Office of Postsecondary Education before he was laid off in March, said he fears the Education Department may rely too heavily on contractors to get it all done. "I don't know if that's going to work," he said. Echoes of FAFSA challenges It's not the first time in recent years that the Education Department has been tasked with implementing big changes for students. The last time, it didn't go very well. In December 2020, Congress passed a law to simplify the Free Application for Federal Student Aid, or FAFSA, a form that most students must fill out each year to get financial aid. But the rollout went haywire, jeopardizing the college dreams of millions. There were many reasons the agency bungled the law's implementation. Some federal officials blamed outside contractors, who were doing the bulk of the work because the Education Department was short-staffed. Other critics said former President Joe Biden spent too much time prioritizing student loan forgiveness. Read more: How did the FAFSA rollout go so wrong? A look at the key events Regardless of the cause, the effects were devastating: Some students decided to delay college or forgo it altogether. Parents made important decisions without enough information. And universities lost trust in the federal financial aid system. Things turned around, though. After Biden's Education Department brought in a special team to focus on the FAFSA, the form got better. Now, it's easier than ever to fill out. In many college financial aid offices, the wounds from the FAFSA crisis are still fresh. And since the Education Department layoffs, schools have struggled to get in touch with the government for routine requests. Those issues are already affecting their ability to help students. Read more: Colleges report widespread problems with financial aid since Education Department layoffs In a statement on July 14, Melanie Storey, the president of the National Association of Student Financial Aid Administrators, emphasized that students and schools need more clarity about what comes next. "With significantly more work on the horizon to implement the One Big Beautiful Bill Act, we reiterate our concerns that the Trump administration has not shared the details of a plan to redistribute the Department's work in a way that does not cause significant disruption for America's college students," she said. Zachary Schermele is an education reporter for USA TODAY. You can reach him by email at zschermele@ Follow him on X at @ZachSchermele and Bluesky at @
