Nearly $7 Billion for Schools in Jeopardy as Ed Dept. Holds Up Federal Funds
The department is reviewing whether funding for migrant students and afterschool programs fits Trump鈥檚 priorities.

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English learners, students who depend on afterschool care and the children of migrant workers could lose services after the U.S. Department of Education abruptly announced Monday it wouldn鈥檛 disperse nearly $7 billion in education spending that Congress already approved.
The funds, which states normally can access by July 1, pay for staff salaries, teacher training, curriculum materials and other essential expenses. That means states and districts will likely have to cut those functions or find other ways to pay for them. The delay, for example, threatens over $1.3 billion in funding for 21st Century Community Learning Centers, which goes to schools, libraries and nonprofits that provide tutoring and enrichment programs.
鈥淲e will very quickly see more children and youth unsupervised and at risk, more academic failures, more hungry kids, more chronic absenteeism, higher dropout rates, more parents forced out of their jobs,鈥 said Jodi Grant, executive director of the Afterschool Alliance, an advocacy organization.
The possible cancellation of additional federal funds for schools adds to the upheaval created by the elimination of existing grants and contracts amid Trump鈥檚 ongoing efforts to shut down the department. His proposed fiscal 2026 budget would also shrink over $6.5 billion for 18 programs into a $2 billion block grant. Last week, Education Secretary Linda McMahon assured members of the that special education funding and Title I grants for high-poverty schools would be 鈥渓evel funded,鈥 according to a recording of the meeting shared with The 74. But she never mentioned the fate of the other programs, and state leaders didn鈥檛 ask.
Trump officials based Monday鈥檚 move on 鈥渢he change in administrations,鈥 even though the president the budget on March 15. The department, the note said, has not yet made decisions about 鈥渁wards for this upcoming academic year鈥 and remains committed to ensuring taxpayer resources are spent in accordance with the president’s priorities.鈥
If the administration follows through with clawing back the funds, the move is certain to spark another lawsuit. Federal courts have mitigated the effects of previous cuts. McMahon, for example, tried to rescind over $2 billion in remaining COVID relief funds until 15 states and the District of Columbia .
Last week, in response, she told all states with remaining funds that to avoid 鈥渦niformity and fairness problems,鈥 they could once again submit receipts for reimbursement.
A seldomly used law, the , allows the administration to withhold funds that Congress appropriates, but the president has to first seek lawmakers鈥 approval, which he didn鈥檛 do in this case. Last week, Russ Vought, director of the Office of Management and Budget, told senators that officials were to hold on to funds intended for some agencies, but both Democrats and Republicans appeared skeptical.
In a statement Tuesday, Washington Sen. Patty Murray, ranking Democrat on the appropriations committee, said the freeze will impact students in every ZIP code.
鈥淧resident Trump and Russ Vought need to stop sabotaging our students鈥 futures and get these resources out the door,鈥 she said. 鈥淟ocal school districts can鈥檛 afford to wait out lengthy court proceedings to get the federal funding they鈥檙e owed 鈥 nor can they make up the shortfall, especially not at the drop of a pin.鈥
Some advocates called on the Senate to delay final confirmation of Trump鈥檚 education department nominees, including Penny Schwinn as deputy education secretary and Kimberly Richey to lead the Office for Civil Rights, until the funds are released.
The organizations, including All4Ed, EdTrust, Educators for Excellence and the National Center for Learning Disabilities, the department鈥檚 move as 鈥渁 potential violation of federal law and a direct threat to the educational opportunities of our nation鈥檚 most vulnerable students.鈥
In addition to the funding for afterschool programs, states are waiting on over $2 billion to recruit and train teachers, especially for high-needs schools; almost $900 million to support English learners; and $376 million for migrant education programs.
Gustavo Balderas, president of AASA, the School Superintendents Association, and superintendent of the Beaverton, Oregon, district, said districts nationwide would feel the pinch.
鈥淒istricts are already stretched financially and this will be another unanticipated reduction to America鈥檚 public school system,鈥 he said. 鈥淲ith school starting in a few weeks, budgets will have to be restructured and some staff positions will have to be reduced.鈥
Districts may also lose their chance to spend federal funds on such programs in the future, if they find another way to pick up costs this year. The 鈥渟upplement, not supplant鈥 rule in the Every Student Succeeds Act holds that if a district used state or local funds for a program, then they don鈥檛 need federal dollars to cover it, explained Matt Colwell, who previously oversaw federal programs for the Oklahoma State Department of Education.
鈥淭he law severely limits what they can do once they lock into paying for it with state funds,鈥 he said. He also wondered whether staff reductions played a role in holding up the funds. 鈥溾榃e are looking into it鈥 could be a way around saying, 鈥榃e fired all the people that actually take care of this.鈥 鈥
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