States across the country are missing more than $6 billion in federal funding grants that have not been released by the Trump administration.
Why It Matters
The freeze leaves states and schools in limbo as they budget for programs for this summer and the upcoming school year, introducing new uncertainty about when—or if—they will receive the money.
Without the funding, schools say they won’t be able to provide free or affordable after-school care for low-income kids while their parents work, and they may not be able to hire staff to teach children who are learning English. Classes or camps underway this summer could also be in jeopardy.
It also sets the stage for a clash with Democrats, who say the administration is flouting the law by holding back money Congress has appropriated.
What To Know
The Trump administration has withheld federal grants for after-school and summer programs, English language instruction, adult literacy and more as part of a review to ensure they align with President Donald Trump’s priorities.
Programs that rely on the money were expecting it to be distributed July 1, but the Department of Education said in a last-minute notice that the money would not be released while the programs are under review, according to the School Superintendents Association.
The notice said that “decisions have not yet been made” on grants for the upcoming school year.
The Department of Education declined to comment and referred Newsweek to the Office of Management and Budget (OMB). An OMB spokesperson told Newsweek that the review is “ongoing” and “no decisions have been made yet.”
An estimated $6.2 billion in Congressionally appropriated funds across five programs are being withheld, according to the Learning Policy Institute, an education research and policy advocacy group.
They include programs that support the educational needs of migrant children, provide before and after-school programs through the 21st Century Community Learning Centers and help English language learners.
Every state is impacted, with funds across the five programs amounting to at least 10 percent of each state’s overall federal K-12 funding. For 14 states and the District of Columbia, the withheld funding amounts to at least 15 percent of overall federal K-12 funding.
In California, an estimated $180 million is being withheld, amounting to about 16.5 percent of the state’s federal education funding. In Texas, more than $660 million is being withheld—more than 16.1 percent of the state’s total federal K–12 funding.
The map below shows how much is being withheld from each state and the District of Columbia and how much of that withheld funding amounts is as a percentage of the state’s total K-12 funding.
What People Are Saying
The OMB spokesperson told Newsweek: “This is an ongoing programmatic review of education funding.”
The spokesperson said initial findings of the review show that “many of these grant programs have been grossly misused to subsidize a radical leftwing agenda. In one case, NY public schools used English Language Acquisition funds to promote illegal immigrant advocacy organizations. In another, Washington state used funds to direct illegal immigrants towards scholarships intended for American students.”
The spokesperson added: “As stated before, this is an ongoing programmatic review and no decisions have been made yet.”
Jim Clark, president and CEO of the Boys and Girls Clubs of America, said in a statement: “Just like any organization, Boys & Girls Clubs depend on financial commitments to operate—to recruit talent, deliver services, and meet the needs of families they serve daily. If these funds are blocked, the fallout will be swift and devastating.”
Clark said that as many as 926 Boys and Girls Clubs could close, affecting more than 220,000 kids.
Jodi Grant, executive director of the Afterschool Alliance, said the Trump administration’s decision to withhold the money was “a stunning betrayal.”
Grant said: “Congress appropriated and all 50 states and D.C. have already committed these funds to individual afterschool and summer learning programs, most of which are expecting their grants now. Withholding these funds will cause lasting harm to students and families, and to our education system, our future workforce, and our economy.
“If these funds are not released very soon, we will quickly see more children and youth unsupervised and at risk, more academic failures, more hungry kids, more chronic absenteeism, higher dropout rates, more parents forced out of their jobs, and a less STEM-ready and successful workforce as our child care crisis worsens dramatically.”
Senator Patty Murray, a Democrat, said in a statement that Trump and OMB director Russ Vought “need to stop sabotaging our students’ futures and get these resources out the door. Local school districts can’t afford to wait out lengthy court proceedings to get the federal funding they’re owed—nor can they make up the shortfall, especially not at the drop of a pin.”
Murray added: “Every day that this funding is held up is a day that school districts are forced to worry about whether they’ll have to cut back on afterschool programs or lay off teachers instead of worrying about how to make sure our kids can succeed.”
What’s Next
It is not clear when the Trump administration will complete its review and whether the funding will be released. If Congress does not approve a rescission request within 45 days, the law requires the administration to distribute the funds as originally planned.
Some states have signaled readiness to take court action if necessary.
Murray also noted that the administration has proposed to eliminate each of the five programs in its budget request for the 2026 fiscal year.
