by Robbie Sequeira, Louisiana Illuminator
July 6, 2025

The U.S. Department of Education’s decision last week to hold back $6.8 billion in federal K-12 funds next year has triggered alarm among state education officials, school leaders and advocacy groups nationwide over how the lack of funds will affect their after-school, enrichment and language-learning services.

The Trump administration’s decision to freeze the funding has put states in “triage mode” as they scramble to decide what programs may be cut without that funding, said Mary Kusler, senior director for the Center for Advocacy at the National Education Association. The money was approved by Congress to support education for English language learners, migrants, low-income children and adults learning to read, among others.

As of July 1, school systems are unable to draw down funding, jeopardizing summer programs, hiring and early-year planning for the 2025–26 school year.

The funding freeze affects several core programs: Title II-A (educator training and recruitment), Title III-A (English learner support), Title IV-A (student enrichment and after-school), as well as migrant education and adult education and literacy grants. Trump has proposed eliminating all those programs in his proposed budget for next fiscal year, but that proposal hasn’t gone through Congress.

State superintendents sent out missives to school districts early this week and now are scrambling to make choices.

“This is not about political philosophy, this is about reliability and consistency,” Alabama state Superintendent Eric Mackey said to Politico this week. “None of us were worrying about this.”

The administration says it is reviewing the programs.

“The Department remains committed to ensuring taxpayer resources are spent in accordance with the President’s priorities and the Department’s statutory responsibilities,” the U.S. Department of Education wrote to states in its announcement Monday.

Historically, the department releases allocations by July 1 to ensure schools can budget and plan effectively for the coming school year. Withholding the money could result in canceled programs, hiring freezes and the loss of essential support for English learners, migrant children and other high-need populations, education and state officials told Stateline.

“America’s public school leaders run district budgets that are dependent on a complex partnership between federal, state, and local funding,” said David R. Schuler, executive director of the School Superintendents Association in a statement. “For decades, school districts have relied on timely confirmation of their federal allocations ahead of the July 1 start of the fiscal year — ensuring stability, allowing for responsible planning, and supporting uninterrupted educational services for students.”

The states facing the largest withheld amounts include California ($810.7 million), Texas ($660.9 million), and New York ($411.7 million), according to data from the NEA and the Learning Policy Institute, an education think tank.

For 17 states and territories, the freeze affects over 15% of their total federal K-12 allocations, according to the Learning Policy Institute. For smaller jurisdictions such as the District of Columbia and Vermont, the disruption hits even harder: More than 20% of their federal K-12 budgets remain inaccessible.

Colorado Education Commissioner Susan Córdova urged school districts to begin contingency planning in case funds are not released before the federal fiscal year ends on Sept. 30. California State Superintendent Tony Thurmond hinted at possible legal action, which has become a trend as states fight the second Trump administration’s funding revocations or delays.

“California will continue to pursue all available legal remedies to the Trump Administration’s unlawful withholding of federal funds appropriated by Congress,” Thurmond said in a statement.

The NEA and the NAACP have filed for a preliminary injunction, calling the administration’s delay an illegal “impoundment” — a violation of the federal Impoundment Control Act, which bars the executive branch from withholding appropriated funds without congressional approval.

Education advocates warn the recent decision by the Trump administration to withhold funding reflects a broader pattern of federal disengagement from public education.

Community nonprofits said the withholding could devastate their programming too. The Boys and Girls Clubs of America could have to close more than 900 centers — bringing the loss of 5,900 jobs and affecting more than 220,000 children, said President and CEO Jim Clark in a statement.

The 1974 Impoundment Control Act lets the president propose canceling funds approved by Congress. Lawmakers have 45 days to approve the request; if they don’t, it’s denied. Meanwhile, agencies can be directed not to spend the funds during that time.

A White House statement shared with States Newsroom this week said “initial findings have shown that many of these grant programs have been grossly misused to subsidize a radical leftwing agenda.”

“Kids, educators, and working families are the ones losing,” said Kusler, of the NEA. “We need governors and communities to step up — now.”

Stateline reporter Robbie Sequeira can be reached at rsequeira@stateline.org.

Stateline is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Stateline maintains editorial independence. Contact Editor Scott S. Greenberger for questions: info@stateline.org.

Louisiana Illuminator is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Louisiana Illuminator maintains editorial independence. Contact Editor Greg LaRose for questions: info@lailluminator.com.

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Note: The following A.I. based commentary is not part of the original article, reproduced above, but is offered in the hopes that it will promote greater media literacy and critical thinking, by making any potential bias more visible to the reader –Staff Editor.

Political Bias Rating: Center-Left

This article frames the withholding of federal education funds by the Trump administration as a serious problem impacting vulnerable populations such as English learners, migrant children, and low-income students. The language emphasizes the negative consequences of the funding freeze on schools and community programs, highlights legal challenges by groups like the NAACP and NEA, and includes critical statements from education officials and advocates. While it reports official positions and actions, the overall tone and selection of sources reflect concern about Republican policy decisions and align with a center-left perspective that supports sustained federal investment in public education and social programs.

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