On July 25, 2025. the Trump administration announced plans to release more than $5 billion in funding to public schools that it has withheld for nearly a month. According to the U.S. Education Department (USDE), the funds will be released starting the week of Monday July 28, 2025. Legislators from both parties had requested the release of funds and several states also sued the administration in an effort to get the funds released. The release is due to a directive from the Office of Management and Budget (OMB) to release all formula funds.
The grants that were held for review fund a wide range of education programs, including migrant education, services for English language learners and adult education.
The largest pot of grant money consisted of roughly $2.2 billion for professional development for educators.
On June 30th, the Trump administration told states it was withholding the previously approved federal grants for further review, just a day before the July 1 deadline when those funds have traditionally been disbursed. That move created chaos and caused much stress among school districts.
The Trump administration has been targeting these programs and its proposed FY 2026 budget eliminated all the grants that had been frozen.
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