Education Department Freezes More Than $6 Billion In Promised Funds

Every year, July 1 marks an important day for schools. That’s when they receive access the federal funds Congress has allocated to them for the upcoming school year. Schools have planned for this money — there’s no other way to hit the ground running in August or September. But on June 30, just one day before those funds were due, the Department of Education told schools that the Trump Administration would be withholding funds for certain programs to the tune of more than $6 billion because “decisions have not yet been made concerning submissions and awards for this upcoming academic year.”

But in fact Congress, which holds the power of the purse, established this budget in March, when they voted to extend last year’s funding into the coming academic year. The executive branch cannot withhold funds allocated by Congress (more on that in a minute).

This action does not threaten two of ED’s largest programs — Title I and the Individuals with Disabilities Education Act (IDEA) — but the five K-12 programs that are affected represent anywhere from 10% to 20% of federal education funding throughout the U.S. and its territories. They include...

• Title I-C — migrant education ($375 million)
• Title II-A —professional development ($2.2 billion)
• Title III-A — English language acquisition services ($890 million)
• Title IV-A — classroom tech and enrichment ($1.3 billion)
• Title IV-B — funding for Nita M. Lowey 21st Century Community Learning Centers, the only federally supported before-, after-, and summer-school programs ($1.4 billion)
• Adult Education and Family Literacy Act (AEFLA) — funding for adult English learners and/or those without a high school degree to develop literacy and other foundational skills. ($729 million)

This announcement appears to reflect Trump’s 2026 budget proposal, which has not yet been enacted by Congress. The plan calls for the elimination of these programs and about a dozen others to K-12 education in order to reach the White House’s goal of a $12 billion cut to ED spending in 2026.

Legally speaking, the executive branch can temporarily withhold funds (this is called impoundment), but only for 45 days, during which time Congress can rubber stamp or deny this action. If they do nothing, it is considered denied and funds must be restored. But even the delay puts states and schools in a difficult position: many have already contracted with vendors or other third parties under the (reasonable) presumption that the funds would be forthcoming.

According to a report by Politico, the agency told states: “The Department remains committed to ensuring taxpayer resources are spent in accordance with the President’s priorities and the Department’s statutory responsibilities.”

States, which stand to lose anywhere from between $24.5 million and more than $800 million, are expected to pursue legal action.