Trump abruptly returns $5 billion in funding back to schools

Overview:

After bipartisan pressure, the Department of Education has reversed course and announced the release of over $5 billion in paused federal funds—originally withheld by the Trump administration—restoring critical support for after-school programs, teacher training, and English language learners nationwide.

In an abrupt move, the Department of Education announced on Friday that it would release over $5 billion in funding to school systems after the Trump administration paused it on July 1 without warning.

These already approved federal funding is intended to support summer and after-school programs for migrant students, English learners, and underserved communities were held in late June, for further review. The delay came a day before the July 1 deadline, when funds had traditionally been disbursed.

“OMB has completed its review of Title I-C, Title II-A, Title III-A, and Title IV-A ESEA funds and Title II WIOA funds, and has directed the Department to release all formula funds,” said Madi Biederman, deputy assistant secretary for communications for the Department of Education. “The agency will begin dispersing funds to states next week.”

In March of this year, Congress passed a continuing resolution that provides federal funding through the end of fiscal year 2025, which President Trump signed into law. This law included approximately $45 billion to support K–12 students nationwide, with most funding targeted towards the country’s most underserved students.

On June 30, states were notified by the Department of Education that “decisions have not yet been made concerning submissions and awards for this upcoming academic year,” with no date provided for when or if states would receive these funds.

On July 18, the Trump administration released $1.3 billion for after-school and summer programs in response to pressure from both Republicans and Democrats.

Despite today’s announcement of releasing the funds, the funds won’t be allocated to states until next week.

The White House, however, argued that the withholding of the funds was due to a “radical leftwing agenda”; however, both Democrats and Republicans decried the withholding.

West Virginia Republican Sen. Shelley Moore Capito, who led the campaign to return the funds for Senate Republicans, reacted to the news on X, formerly known as Twitter.

“This supports critical programs so many West Virginians rely on and I made that clear to OMB Director Vought,” Capito said on the social platform X, referring to Russell Vought, Director of the White House Office of Management and Budget.

The pause in the funding and the uncertainty were a distraction for school systems, said U.S. Sen. Patty Murray, D-Wa.

“Instead of spending the last many weeks figuring out how to improve after-school options and get our kids’ reading and math scores up, because of President Trump, communities across the country have been forced to spend their time cutting back on tutoring options and sorting out how many teachers they will have to lay off,” Murray said.

The deliberate delay in funding led to delays, teacher layoffs, and program closures nationwide. In response, Democratic-led states sued the Trump administration, and 10 Senate Republicans sent an open letter to voice their concerns with withheld money.

Several professional organizations for superintendents and educators expressed concern about the disruptive impact of withholding funds on school systems.

“We are pleased public schools will receive the funding as appropriated by Congress for the 2025-26 school year. On the heels of our survey released Tuesday, detailing how disruptive withholding these funds would be for our nation’s students, we thank our members and allies on the Hill,” said David R. Schuler, Executive Director of The School Superintendents Association in a statement. “We appreciate their tireless advocacy, communication and outreach to the Administration about the importance of releasing these critical funds.”

NEA President Becky Pringle did not mince words about the consequences of withholding the funds.

“Playing games with students’ futures has real-world consequences. School districts in every state have been scrambling to figure out how they will continue to meet student needs without this vital federal funding, and many students in parts of the country have already headed back to school,” said NEA President Becky Pringle. “These reckless funding delays have undermined planning, staffing, and support services at a time when schools should be focused on preparing students for success.”