Education Department puts billions in funding on hold as school year nears

Federal officials have stalled billions in education funding, leaving school districts across the country facing uncertainty as the new school year approaches. The U.S. Department of Education missed the July 1 deadline to release about $6.2 billion tied to five key programs.

Estimates suggest the total amount of delayed funding nationwide ranges from $5 billion to $6.8 billion. Now, states and territories are feeling the pressure as critical dollars remain on hold.

Billions of dollars on hold for public education

For all states and territories, the delayed funds make up at least 10% of their total federal K-12 support. In 17 states and territories, that number rises to 15% or more, increasing the risk of serious cuts to essential programs.

On June 30, federal officials notified state leaders that they still hadn’t decided when — or if — they would award the money for the upcoming school year. The notice referenced the changing administration and ensuring taxpayer resources align with President Donald Trump’s current priorities. 

According to the Learning Policy Institute, the delay puts vital services for millions of students at risk, including summer programs. The funding supports everything from helping migrant students stay on track to graduate, to improving teacher quality, expanding English language learning and ensuring underserved communities have access to the support students need to succeed.

Advocates are expressing confusion because Congress passed a resolution in March approving $45 billion in school support, which Trump later signed into law. Despite the approval, billions in funding remain on hold, leaving many unsure why the money has yet to reach states and school districts.

“This is lawless. These are congressionally approved programs for this year, and the Trump administration is trying to defund education unilaterally through government overreach. The administration does not have the right to starve children because of its ideology,” said Randi Weingarten, president of the American Federation of Teachers, a union working with professionals to ensure democracy in public education. 

What happens next? 

If the Department of Education doesn’t release the funds without more approval from Congress, the Government Accountability Office (GAO) can step in, according to the Learning Policy Institute. Starting July 1, GAO has the power to review the impact of the delay on states, school districts and students. If it finds the money is being held illegally, it can report the violation to Congress and take legal action.

The GAO is already investigating at least 39 possible violations of federal law by the current administration. In one recent case, the agency found that officials had illegally withheld funds meant for the Institute of Museum and Library Services.

The Education Department has not announced an official review of the funding delay. However, under federal law, Congress must approve any decision to rescind funds within 45 days. If Congress does not act, the agency must release the money.