U.S. Department of Education Withholds $6.8 Billion in Education Funding

On June 30, 2025, the U.S. Department of Education informed state education agencies that it would not release nearly $6.8 billion in federal K-12 funding scheduled for distribution on July 1, in direct conflict with the timeline mandated by law. The affected programs include Title I-C for migrant education, Title II-A for professional development, Title III-A for English-learner services, Title IV-A for academic enrichment, and Title IV-B for before- and after-school programs. 

These funding streams are essential for school districts across the country, supporting everything from staffing and curriculum to technology and student services. The delay comes despite a congressional continuing resolution earlier this year that extended previous funding levels.

The decision aligns with the Trump administration’s fiscal 2026 budget proposal, which calls for eliminating the same five programs, though Congress has not approved such cuts. Legal and political backlash is expected, as federal law restricts the executive branch from impounding funds without congressional approval. 

The action excludes Title I-A and IDEA, the two largest funding streams for K-12 education. Still, the withheld funds represent over 10% of federal K-12 education spending in more than 30 states, and their delay threatens immediate disruptions to staffing, summer learning, and federally mandated student services.

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The Trump administration is holding back nearly $6.8 billion in federal funding for K-12 schools it was scheduled to dole out July 1, Education Department staff told state education agencies on Monday afternoon—the day before the funding, by law, was required to start flowing.

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