The Trump administration’s sudden decision to freeze $6.8 billion in federal education funding—already approved by Congress four months ago—has thrown school districts and state leaders nationwide into a state of confusion, cost-cutting, and panic.
As news of the funding halt broke Tuesday, some districts began shutting down programs and revising budgets, while others turned to state officials for guidance—who themselves are scrambling for clarity. Legal action against the federal government is already being discussed.
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In a brief memo sent Monday, June 30, the U.S. Department of Education notified states that funding expected to arrive July 1 for five key formula-based programs would be withheld pending a review. The memo did not explain the review’s purpose, its timeline, or whether the funds would be released afterward.
When asked for comment, the Office of Management and Budget (OMB) did not respond. A spokesperson for the Department of Education redirected inquiries to OMB.
Major Uncertainty for States
The unexpected freeze leaves states in the lurch just weeks before the start of the new school year. Many must now alert school districts that federal funding will fall far short of expectations—including for legally mandated services.
According to an analysis by the Learning Policy Institute, every state will lose at least 10% of its federal K-12 funds if the freeze continues. Vermont and Washington, D.C., stand to lose 20%.
This move raises legal questions. The U.S. Constitution gives Congress control over federal spending, and the Impoundment Control Act of 1974 requires the president to spend funds that Congress has appropriated. Yet Russell Vought, the Trump administration’s top budget official, claims that law is unconstitutional.
Immediate Impact on Students and Services
The fallout for students and families is already underway.
Many states on Tuesday instructed adult education providers to suspend operations after $715 million in adult education funding was withheld, according to Jeff Fantine of the National Coalition for Literacy.
In Florida, professional development programs have already been halted, said Susanne Peña, president of the Florida Association of Bilingual Education, during a webinar addressing the crisis.
Summer programs may also be forced to close. Title IV-B funding, also known as the Nita M. Lowey 21st Century Community Learning Centers program, provides $1.4 billion for over 10,000 before- and after-school programs that serve 1.4 million children nationwide. Many of these programs are now at risk.
